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Passing the dividend baton: The impact of dividend policy on new CEOs’ initial compensation

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dc.contributor.authorGoergen, Marc
dc.contributor.authorChen, Jie
dc.contributor.authorSong, Wei
dc.contributor.rorhttps://ror.org/02jjdwm75
dc.date.accessioned2025-03-13T14:47:44Z
dc.date.available2025-03-13T14:47:44Z
dc.date.issued2019-06
dc.description.abstractWe examine how firms’ dividend policy affects the initial compensation of their newly appointed CEOs. We focus on newly appointed CEOs to isolate the effect of dividends on compensation and to provide new insights into an aspect largely neglected by compensation research. We show that the dividend payout is positively related to new CEO compensation. Further, the positive effect of dividends is stronger for firms with no dividend cuts over the past two, three and four years, firms with relatively high institutional ownership, and those with strong boards, consistent with new CEOs receiving higher pay as compensation for greater dividend pressure.
dc.description.peerreviewedyes
dc.description.statusPublished
dc.formatapplication/pdf
dc.identifier.citationChen, J., Song, W., & Goergen, M. (2019). Passing the dividend baton: the impact of dividend policy on new CEOs' initial compensation. Journal of Corporate Finance, 56, 458-481. https://doi.org/10.1016/j.jcorpfin.2019.04.004.
dc.identifier.doihttps://doi.org/10.1016/j.jcorpfin.2019.04.004
dc.identifier.issn0929-1199
dc.identifier.urihttps://hdl.handle.net/20.500.14417/3648
dc.journal.titleJournal of Corporate Finance
dc.language.isoen
dc.page.total72
dc.publisherElsevier
dc.relation.departmentFinance
dc.relation.entityIE University
dc.relation.schoolIE Business School
dc.rightsAttribution-NonCommercial-NoDerivatives 4.0 International
dc.rights.accessRightsinfo:eu-repo/semantics/openAccess
dc.rights.urihttps://creativecommons.org/licenses/by-nc-nd/4.0/deed.en
dc.subject.keywordCEO compensation
dc.subject.keywordNew CEOs
dc.subject.keywordDividend policy
dc.subject.keywordCorporate governance
dc.titlePassing the dividend baton: The impact of dividend policy on new CEOs’ initial compensation
dc.typeinfo:eu-repo/semantics/article
dc.version.typeinfo:eu-repo/semantics/acceptedVersion
dc.volume.number56
dspace.entity.typePublication
relation.isAuthorOfPublication55eb0faa-13da-4a35-a432-f529b62f4d8b
relation.isAuthorOfPublication.latestForDiscovery55eb0faa-13da-4a35-a432-f529b62f4d8b
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