Bonus-Driven Repurchases
2015 ◽
Vol 50
(3)
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pp. 447-475
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Keyword(s):
Long Run
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AbstractUsing a large hand-collected database of chief executive officer (CEO) bonus structures, we find that when a CEO’s bonus is directly tied to earnings per share (EPS), his company is more likely to conduct a buyback. This effect is especially pronounced when a company’s EPS is right below the threshold for a bonus award. Share repurchasing increases the probability the CEO receives a bonus and the magnitude of that bonus, but only when bonus pay is EPS based. Bonus-driven repurchasing firms do not exhibit positive long-run abnormal returns.
The founder chief executive officer: A review of current insights and directions for future research
2020 ◽
Vol 28
(6)
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pp. 406-436
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1991 ◽
Vol 6
(3-4)
◽
pp. 128-139
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Keyword(s):
2011 ◽
Vol 36
(1)
◽
pp. 1-2