Impact of pay disparities between chief executive officers and chief financial officers on corporate financial and investment policies

被引：4

作者：

Han, Feng ^{[1
]}

Che, Xin ^{[2
]}

He, Enya ^{[3
]}

机构：

[1] Capital Univ Econ & Business, Beijing, Peoples R China

[2] Calif State Univ Fullerton, Fullerton, CA 92634 USA

[3] Lloyds London, Dallas, TX USA

来源：

JOURNAL OF INTERNATIONAL FINANCIAL MANAGEMENT & ACCOUNTING | 2022年 / 33卷 / 01期

关键词：

chief financial officer; financial policy; investment policy; pay disparities; tournament incentives; TOURNAMENT INCENTIVES; TOP-MANAGEMENT; PERFORMANCE; RISK; COMPENSATION; EQUITY; FIRMS; PRICE; SIDE;

D O I：

10.1111/jifm.12142

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

We study whether and how pay disparities between chief executive officers (CEOs) and chief financial officers (CFOs) affect corporate policies. Consistent with the tournament theory, we find a positive association between the CEO-CFO pay disparity and aggressiveness in corporate financial and investment policies. Specifically, a firm with a large CEO-CFO pay disparity tends to have an aggressive capital structure and tilt toward high-risk investments. Furthermore, we test the impact of the CEO-CFO pay disparity on firm value and show that the pay disparity is positively associated with firm value. Overall, we conclude that CEO-CFO pay disparities provide CFOs with tournament incentives to not only adopt aggressive corporate policies but also select better investment projects. Our research highlights the career-enhancing and value-creating effects of CEO-CFO pay disparities as well as the important role of CFOs' incentives on the treasurer side of their duties.

引用

页码：57 / 82

页数：26

共 50 条

[1] How do chief financial officers influence corporate cash policies?
Florackis, Chris
Sainani, Sushil
[J]. JOURNAL OF CORPORATE FINANCE, 2018, 52 : 168 - 191
[2] The impact of chief executive officers' religiosity on banks' financial performance in Indonesia
Surya, Juanda
Rahajeng, Dian Kartika
[J]. JOURNAL OF ISLAMIC ACCOUNTING AND BUSINESS RESEARCH, 2023, 14 (08) : 1473 - 1473
[3] Supporter or Supervisor? The Role of Chief Financial Officers in Corporate Innovation
Huang, Junqin
Liao, Youliang
Lin, Bin
Loh, Lawrence
[J]. SUSTAINABILITY, 2022, 14 (15)
[4] REVEL CHIEF EXECUTIVE, CHIEF INVESTMENT OFFICERS STEP DOWN
不详
[J]. GAMING LAW REVIEW-ECONOMICS REGULATION COMPLIANCE AND POLICY, 2013, 17 (04): : 255 - 255
[5] Chief Financial Officers as Inside Directors
Bedard, Jean C.
Hoitash, Rani
Hoitash, Udi
[J]. CONTEMPORARY ACCOUNTING RESEARCH, 2014, 31 (03) : 787 - 817
[6] On the choice and replacement of chief financial officers
Mian, S
[J]. JOURNAL OF FINANCIAL ECONOMICS, 2001, 60 (01) : 143 - 175
[7] The effect of the accounting expertise of chief financial officers on corporate credit ratings
Chen, Ming-Chin
Chang, Chia-Wen
[J]. ASIA-PACIFIC JOURNAL OF ACCOUNTING & ECONOMICS, 2022, 29 (02) : 451 - 471
[8] Chief executive officers and the pay-pension tradeoff
Gerakos, Joseph
[J]. JOURNAL OF PENSION ECONOMICS & FINANCE, 2010, 9 (02): : 303 - 319
[9] THE NEW REALITIES FACING CHIEF FINANCIAL OFFICERS
COLLINS, SH
[J]. JOURNAL OF ACCOUNTANCY, 1988, 166 (01): : 72 - 74
[10] Current Accounting Issues Facing Chief Accounting and Chief Financial Officers
Ciesielski, Jack T.
Weirich, Thomas R.
[J]. JOURNAL OF CORPORATE ACCOUNTING AND FINANCE, 2015, 26 (05): : 63 - 72

← 1 2 3 4 5 →