scholarly journals The Overconfidence Of Boards And The Increase In CEO Pay Over Time

2014 ◽  
Vol 30 (6) ◽  
pp. 1901 ◽  
Author(s):  
Gregory L. Nagel
Keyword(s):  
Firm Performance ◽  
Institutional Investors ◽  
Bargaining Power ◽  
Alternative Explanation ◽  
Direct Evidence ◽  
Upward Trend ◽  
Ceo Pay ◽  
Survey Results ◽  
Over Time

This paper is based on Robert Shillers view that hiring of external CEOs is excessive due to boards overconfidence and causes reduced firm performance. External hire selections provide all CEOs with bargaining power. I show excessive external hiring provides an alternative explanation (excessive bargaining power) for the upward trend in CEO pay since 1945 that is largely consistent with the observed facts. A survey of the direct evidence on external hires performance provides uniform support for Shillers view after accounting for research supporting alternative views that only includes CEOs who survive. After adjusting for survival bias, the survey results consistently suggest that firms predominantly realize greater performance from internal promotion, all else equal. Overall, this papers findings increase support for succession through internal executive promotion, and suggest that institutional investors can expect greater bargaining power and wealth by advocating for internal hires more often.

Institutional Investors and CEO Pay Performance in Malaysian Firms

2018 ◽  
Vol 17 (1) ◽  
pp. 87-102 ◽  
Author(s):  
Tee Chwee Ming ◽  
Yee-Boon Foo ◽  
Ferdinand A. Gul ◽  
Abdul Majid
Keyword(s):  
Firm Performance ◽  
Institutional Investors ◽  
Ceo Compensation ◽  
Positive Association ◽  
Institutional Ownership ◽  
Institutional Investor ◽  
Ceo Pay ◽  
Negative Effect ◽  
Foreign Institutional Investors ◽  
Jel Classifications

ABSTRACT This study uses Malaysian data to examine whether institutional investors affect the association between firm performance and CEO compensation. Overall, we find that total institutional investor ownership has a negative effect on the positive association between firm performance and CEO compensation, which suggests ineffective monitoring. When the institutional investors are categorized into local and foreign, we find that the negative effect is driven by local institutional ownership, consistent with the argument that foreign institutional investors are associated with better monitoring. Our results provide new insights on the association between institutional investors and the CEO compensation-firm performance relationship in an emerging economy. JEL Classifications: G34; J33.

THE DEVELOPMENT OF A COMMUNITY OF INQUIRY OVER TIME IN AN ONLINE COURSE: UNDERSTANDING THE PROGRESSION AND INTEGRATION OF SOCIAL, COGNITIVE AND TEACHING PRESENCE

2008 ◽  
Vol 12 (3) ◽  
Author(s):  
Zehra Akyol ◽  
D. Randy Garrison
Keyword(s):  
Social Presence ◽  
Community Of Inquiry ◽  
Social Cognitive ◽  
Cognitive Presence ◽  
Teaching Presence ◽  
Significant Relationships ◽  
Survey Results ◽  
Community Of Inquiry Framework ◽  
Discussion Postings ◽  
Over Time

The purpose of this study was to explore the dynamics of an online educational experience through the lens of the Community of Inquiry framework. Transcript analysis of online discussion postings and the Community of Inquiry survey were applied in order to understand the progression and integration of each of the Community of Inquiry presences. The results indicated significant change in teaching and social presence categories over time. Moreover, survey results yielded significant relationships among teaching presence, cognitive presence and social presence, and students’ perceived learning and satisfaction in the course.

scholarly journals Wage bargaining as an optimal control problem: a dynamic version of the efficient bargaining model

2021 ◽  
Author(s):  
Marco Guerrazzi
Keyword(s):  
Optimal Control ◽  
Continuous Time ◽  
Bargaining Power ◽  
Wage Bargaining ◽  
Bargaining Model ◽  
Speed Of Convergence ◽  
Wage Setting ◽  
Dynamic Version ◽  
Efficient Bargaining ◽  
Over Time

AbstractIn this paper, I develop a dynamic version of the efficient bargaining model grounded on optimal control in which a firm and a union bargain over the wage in a continuous-time environment under the supervision of an infinitely lived mediator. Overturning the findings achieved by means of a companion right-to-manage framework, I demonstrate that when employment is assumed to adjust itself with some attrition in the direction of the contract curve implied by the preferences of the two bargainers, increases in the bargaining power of the firm (union) accelerate (delay) the speed of convergence towards the stationary solution. In addition, confirming the reversal of the results obtained when employment moves over time towards the firm’s labour demand, I show that the dynamic negotiation of wages tends to penalize unionized workers and favour the firm with respect to the bargaining outcomes retrieved with a similar static wage-setting model.

Analysis Good Governance of Corruption Eradication toward Penta Helix Model in Indonesia

2020 ◽  
Vol 3 ◽  
pp. 14-28
Author(s):  
Aris Sarjito ◽  
Ghazalie
Keyword(s):  
Research Method ◽  
Annual Report ◽  
Good Governance ◽  
Positive Influence ◽  
Business Community ◽  
Upward Trend ◽  
Corruption Perception Index ◽  
Transparency International ◽  
Survey Results ◽  
Corruption Perception

Transparency International released an annual report on the corruption perception index in 2018. The survey results of 180 countries showed a bad score because more than two-thirds scored less than 50. The highest score is 100, which means very clean or free of corruption, and the lowest is zero which means it is very corrupt. Indonesia must learn from New Zealand and Australia who have succeeded in helping improve the corruption perception index in their country, even though Indonesia's corruption perception index experienced an upward trend in 2014-2018. In an effort to analyze Good Governance in eradicating corruption in Indonesia, the researchers applied the Penta Helix Model, better known as the ABCGM concept, namely Academicians, Business, Community, Government, and Media to reduce the level of corruption in Indonesia. This research method is qualitative to investigate, find, describe, and explain the quality or features of social influences that cannot be explained, measured or described through a quantitative approach. The Penta Helix model is considered to have a positive influence in eradicating corruption.

scholarly journals CEO Compensation and Firm Performance: The Role of ESG Transparency

2020 ◽  
Vol 4 (2) ◽  
pp. 278
Author(s):  
Chetna Rath ◽  
Florentina Kurniasari ◽  
Malabika Deo
Keyword(s):  
Firm Performance ◽  
Chief Executive Officers ◽  
Ceo Compensation ◽  
Negative Relationship ◽  
Chief Executive ◽  
Long Run ◽  
Ceo Pay ◽  
Executive Officers ◽  
The Impact

Chief executive officers (CEOs) of environmental, social, and governance (ESG) firms are known to take lesser pay and engage themselves in corporate social responsibility activities to achieve the dual objective of the enhancement of firm’s performance as well as benefit for stakeholders in the long run. This study examines the role of ESG transparency in strengthening the impact of firm performance on total CEO pay in ESG firms. A panel of 67 firms for the period of 2014–2019 has been analyzed using the two-step system GMM model, with NSE Nifty 100 ESG Index as the data sample and ESG scores from Bloomberg database as a proxy for transparency. Findings reveal that environmental and governance disclosure scores have the potential to intensify the negative relationship between firm performance and CEO compensation, while social disclosure scores do not. In addition, various firm-specific, board-specific, and CEO-specific attributes have also been considered controls affecting remuneration. This paper contributes to the literature by exploring the effect of exhibiting ESG transparency and its nexus with CEO pay as well as firm performance.

CEO Compensation in Japan: Why So Different from the United States?

2018 ◽  
Vol 53 (5) ◽  
pp. 2261-2292
Author(s):  
Luyao Pan ◽  
Xianming Zhou
Keyword(s):  
United States ◽  
Ceo Compensation ◽  
Direct Evidence ◽  
Level Structure ◽  
Chief Executive ◽  
The United States ◽  
Incentive Contracts ◽  
Matched Sample ◽  
Director Compensation ◽  
Ceo Pay

In Mar. 2010, Japan’s financial regulator implemented the country’s first legislation concerning the disclosure of director compensation for named individuals. Using the first publicly available data for Japanese executives, we document direct evidence on the level, structure, and mechanisms of chief executive officer (CEO) compensation in Japan and perform a matched-sample comparison between Japan and the United States. In contrast to the findings of recent studies showing that international differentials in CEO pay have largely disappeared since the mid-2000s, our results show strikingly large differences between the Japanese and American systems that are difficult to explain by differences in conventional incentive contracts.

Pay-performance sensitivity and corporate governance mechanisms: evidence from Tunisia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Meriem Ghrab ◽  
Marjène Gana ◽  
Mejda Dakhlaoui
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Pay For Performance ◽  
Simultaneous Equation ◽  
Executive Pay ◽  
Estimation Model ◽  
Content Type ◽  
Explanatory Variables ◽  
Performance Sensitivity ◽  
Ceo Pay

Purpose The purpose of this study is to analyze the CEO compensation sensitivity to firm performance, termed as the pay-for-performance sensitivity (PPS) in the Tunisian context and to test the robustness of this relationship when corporate governance (CG) mechanisms are considered. Design/methodology/approach The consideration of past executive pay as one of the explanatory variables makes this estimation model a dynamic one. Furthermore, to avoid the problem of endogeneity, this study uses the system-GMM estimator developed by Blundell and Bond (1998). For robustness check, this study aims to use a simultaneous equation approach (three-stage least squares [3SLS]) to estimate the link between performance and CEO pay with a set of CG mechanisms to control for possible simultaneous interdependencies. Findings Using a sample of 336 firm-years from Tunisia over the 2009–2015 periods, this study finds strong evidence that the pay-performance relationship is insignificant and negative, and it becomes more negative or remains insignificant after introducing CG mechanisms consistently with the managerial power approach. The findings are robust to the use of alternative performance measures. This study provides new empirical evidence that CEOs of Tunisian firms abuse extracting rents independently of firm performance. Originality/value This study contributes to the unexamined research on PPS in a frontier market. This study also shows the ineffectiveness of the Tunisian CG structure and thus recommends for the legislator to impose a mandatory CG guide.

Price Negotiation with Merchant Heterogeneity in the Payment Card Industry

2020 ◽  
pp. 1-45
Author(s):  
Chun-Yu Ho ◽  
Li Xu ◽  
Daiqiang Zhang
Keyword(s):  
Bargaining Power ◽  
Penetration Rate ◽  
Nash Bargaining ◽  
Substantial Variation ◽  
Payment Card ◽  
Price Negotiation ◽  
Over Time

We examine price negotiation in the payment card industry by exploiting a unique merchant-, industry-, and city-level dataset. Motivated by the substantial variation in acquirer fees and the heterogeneous merchant card transactions, we use Nash bargaining to model the negotiation over the acquirer fee between an acquirer and a merchant. We find that the merchants secure a larger incremental surplus than the acquirer on average. Moreover, merchants might face upward pressure on acquirer fees as the card penetration rate rises over time, and policies that weaken the acquirer's bargaining power could relieve the upward fee pressure.

scholarly journals Exploring the Effects of Trust and Its Outcomes in B2B Relationship Stages: A Longitudinal Study

2020 ◽  
Vol 12 (23) ◽  
pp. 9937
Author(s):  
Hong-Youl Ha
Keyword(s):  
Firm Performance ◽  
Social Exchange ◽  
Social Exchange Theory ◽  
Temporal Dynamics ◽  
Start Up ◽  
B2b Relationships ◽  
The Impact ◽  
Business To Business ◽  
Positive Effect ◽  
Over Time

Temporal dynamics in business-to-business (B2B) relationships are the evolution of B2B relationship stages. This study offers new insights in examining the impact of the temporal dynamics on firm performance during the B2B relationship stages. Drawing on B2B stage models, social exchange theory and the evolution of trust, the results show that the link between trust and firm performance weakens when a relationship between two parties reaches a particular stage. trust has a positive effect on firm performance in the same period; however, this positive effect decreases over time. Thus, the impact of trust on firm performance is insignificant in subsequent relationship stages in the start-up context. The impact of trust on firm performance is unstable and decreases over time. This study offers new theoretical and managerial insights regarding the temporal dynamics in B2B relationships.

scholarly journals The Rise of Urbanized Landscapes in Mesopotamia: The QADIS Integrated Survey Results and the Interpretation of Multi-Layered Historical Landscapes

2019 ◽  
Vol 109 (2) ◽  
pp. 214-237 ◽  
Author(s):  
Nicolò Marchetti ◽  
Abbas Al-Hussainy ◽  
Giacomo Benati ◽  
Giampaolo Luglio ◽  
Giulia Scazzosi ◽  
...  
Keyword(s):  
Dense Network ◽  
Urbanization Process ◽  
Anthropogenic Transformation ◽  
Preliminary Results ◽  
The Core ◽  
Survey Results ◽  
The University ◽  
Artificial Water ◽  
Over Time ◽  
Archaeological Landscape

Abstract This paper draws on the preliminary results of the QADIS survey project, conducted by the University of Bologna and the Iraqi State Board of Antiquities and Heritage since 2016 in the Qadisiyah province. The project addresses phenomena related to anthropogenic transformation of landscapes in a region that was at the core of the early Mesopotamian urbanization process. Building upon the seminal work conducted by R. McC. Adams in the 1960 s and 1970 s, we implemented an integrated documentation technique to reconstruct at regional levels the changes in the dense network of human settlements and artificial water infrastructures characterizing the evolution of this archaeological landscape over time. The aim of the article is that of providing a finer-grained regional picture of 4th and 3rd millennium BC urban developments which can be useful for better conceptualizing the scale and pace of early Mesopotamian urbanism.

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