Finance and Financial Management Commons^™

What Matters Most In Ceo Compensation?, Randy Beavers

SPU Works

Components of compensation have been analysed in previous studies of corporate financial variables of interest but never together to get a sense of the complete picture of what truly matters. This paper includes variable interactions using the difference-in-differences methodology for panel regressions. Data is collected from Capital IQ, Compustat, CRSP, and ExecuComp for S&P 1500 firms from 2006 to 2013. Inside debt is negatively related to a firm’s total risk, idiosyncratic risk, and CEO turnover. Inside debt is positively related to diversification, liquidity, firm value, and return. Overconfidence is negatively related to total risk, liquidity, investment, and firm value. The …

Ceo Inside Debt And Firm Debt, Randy Beavers

SPU Works

Purpose: This paper aims to examine jointly the CEO inside debt and firm debt to further investigate the compensation incentives on risky decision-making and the resulting financial policy decisions concerning the debt structure of the firm.

Design/methodology/approach: Using S&P 1500 data from CRSP, Compustat, Execucomp and Capital IQ between 2006 and 2011, statistical analysis and regression models are used to determine potential correlations between the variable of interest, inside debt and debt control variables, including specialization.

Findings: Firms with high inside debt specialize in commercial loans and drawn credit lines. Larger firms diversify their debt holdings among commercial instruments and …