CEO Pay Gaps and Bank Risk-Taking

被引：1

作者：

Pathan, Shams ^{[1
]}

Haq, Mamiza ^{[1
]}

Morgan, Jacob ^{[2
]}

机构：

[1] Curtin Univ, Curtin Business Sch, Perth, WA 6102, Australia

[2] Natl Australia Bank, Ringwood, Australia

来源：

EUROPEAN ACCOUNTING REVIEW | 2023年 / 32卷 / 04期

基金：

澳大利亚研究理事会;

关键词：

Bank risk-taking; CEO power; CEO pay gap; Executive compensation; Tournament incentive; Discretionary loan loss provision; Performance; TOURNAMENT INCENTIVES; EXECUTIVE-COMPENSATION; DISCLOSURE; POWER;

D O I：

10.1080/09638180.2022.2043761

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

Bank executives' substantial compensation is seen as one of the factors that contributed to the risk-taking that led to the 2008-2009 financial crisis. We test whether and how pay disparities between CEO and non-CEO executives-the so-called CEO pay gap-influences risk-taking at publicly traded commercial banks in the U.S. We find strong evidence that larger CEO pay gaps are associated with lower risk levels, improved financial performance, and greater information transparency. Our findings are unique to banks and are consistent with the CEO power proposition. We corroborate this proposition by linking larger pay gaps to increased CEO power and low CEO turnover-performance sensitivity. Our results imply that placing absolute limits on bank CEO pay would likely result in increased bank risk-taking.

引用

页码：935 / 964

页数：30

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