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CEO and director compensation, CEO turnover and institutional investors: Is there cronyism in the UK?

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dc.contributor.authorGoergen, Marc
dc.contributor.authorChen, Jie
dc.contributor.authorSau Leung, Woon
dc.contributor.authorSong, Wei
dc.contributor.rorhttps://ror.org/02jjdwm75
dc.date.accessioned2025-03-13T14:51:03Z
dc.date.available2025-03-13T14:51:03Z
dc.date.issued2019-06
dc.description.abstractThis paper provides new evidence that correlated abnormal compensation of CEOs and directors is symptomatic of agency problems associated with cronyism. We find that director abnormal compensation has a negative impact on the likelihood of CEO turnover and reduces the sensitivity of CEO turnover to poor stock performance. However, for firms with greater institutional ownership the adverse effects of director abnormal compensation are mitigated, and the negative impact of abnormal compensation on firm performance is reduced. These findings suggest that correlated abnormal compensation of CEOs and directors is likely associated with agency problems.
dc.description.peerreviewedyes
dc.description.statusPublished
dc.formatapplication/pdf
dc.identifier.citationChen, J., Goergen, M., Leung, W. S., & Song, W. (2019). CEO and director compensation, CEO turnover and institutional investors: is there cronyism in the UK?. Journal of Banking & Finance, 103, 18-35. https://doi.org/10.1016/j.jbankfin.2019.03.019.
dc.identifier.doihttps://doi.org/10.1016/j.jbankfin.2019.03.019
dc.identifier.issn1872-6372
dc.identifier.urihttps://hdl.handle.net/20.500.14417/3649
dc.journal.titleJournal of Banking & Finance
dc.language.isoen
dc.page.total63
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.keywordAgency problems
dc.subject.keywordDirector compensation
dc.subject.keywordCEO turnover
dc.subject.keywordInstitutional investors
dc.subject.keywordBoard effectiveness
dc.titleCEO and director compensation, CEO turnover and institutional investors: Is there cronyism in the UK?
dc.typeinfo:eu-repo/semantics/article
dc.version.typeinfo:eu-repo/semantics/acceptedVersion
dc.volume.number103
dspace.entity.typePublication
relation.isAuthorOfPublication55eb0faa-13da-4a35-a432-f529b62f4d8b
relation.isAuthorOfPublication.latestForDiscovery55eb0faa-13da-4a35-a432-f529b62f4d8b
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