Syed Zulfiqar Ali Shah
CEO compensation and banks’ risk-taking during pre and post financial crisis periods
Shah, Syed Zulfiqar Ali; Akbar, Saeed; Liu, Jia; Liu, Ziyu; Cao, Sichen
Authors
Saeed Akbar
Jia Liu
Ziyu Liu
Sichen Cao
Abstract
© 2017 Elsevier B.V. This study examines the impact of CEO compensation on banks’ risk during both pre and post-financial crisis periods. Our results suggest a negative relationship between CEO bonuses and banks’ risk in the pre-financial crisis period. Similarly, restricted shares and options granted to CEOs in the post-financial crisis period also appear to decrease banks’ risk. In contrast, we observe a positive influence of the Troubled Asset Relief Program (TARP) on banks’ risk. Our results also show that the length of time to maturity of options influences banks’ risk-taking behavior. Our findings have useful implications for formulating and regulating CEO compensation structure.
Citation
Shah, S. Z. A., Akbar, S., Liu, J., Liu, Z., & Cao, S. (2017). CEO compensation and banks’ risk-taking during pre and post financial crisis periods. Research in international business and finance, 42, 1489-1503. https://doi.org/10.1016/j.ribaf.2017.07.089
Journal Article Type | Article |
---|---|
Acceptance Date | Jul 3, 2017 |
Online Publication Date | Jul 8, 2017 |
Publication Date | 2017-12 |
Deposit Date | Sep 18, 2018 |
Publicly Available Date | Oct 27, 2022 |
Journal | Research in International Business and Finance |
Print ISSN | 0275-5319 |
Publisher | Elsevier |
Peer Reviewed | Peer Reviewed |
Volume | 42 |
Pages | 1489-1503 |
DOI | https://doi.org/10.1016/j.ribaf.2017.07.089 |
Keywords | Compensation; Risk-taking; Financial crisis; TARP |
Public URL | https://hull-repository.worktribe.com/output/519262 |
Publisher URL | https://www.sciencedirect.com/science/article/pii/S027553191630513X?via%3Dihub |
Related Public URLs | http://usir.salford.ac.uk/43526/ |
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Publisher Licence URL
https://creativecommons.org/licenses/by-nc-nd/4.0/
Copyright Statement
© 2018. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/
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