Effects of Accumulated CEO Pay and Relative Performance on Risk Taking and Performance Variance

2014 ◽  
Vol 2014 (1) ◽  
pp. 17176
Author(s):  
Daniel Jinyong Zyung ◽  
William Gerard Sanders
Keyword(s):  
Risk Taking ◽  
Relative Performance ◽  
Ceo Pay ◽  
And Performance

scholarly journals CEO Pay and the Rise of Relative Performance Contracts: A Question of Governance?

2021 ◽  
Author(s):  
Brian Bell ◽  
Simone Pedemonte ◽  
John Van Reenen
Keyword(s):  
Corporate Governance ◽  
Institutional Ownership ◽  
Relative Performance ◽  
Formal Structure ◽  
Annual Reports ◽  
Past Performance ◽  
Performance Contracts ◽  
Ceo Pay ◽  
And Performance ◽  
The Uk

Abstract We exploit the large rise in relative performance awards in the UK over the last two decades to investigate whether these contracts improve the alignment between CEO pay and performance. We first document that corporate governance appears to be stronger when institutional ownership is greater. Then, using hand-collected data from annual reports on explicit contracts, we show that (1) CEO pay still responds more to increases in the firms’ stock performance than to decreases and, importantly, this asymmetry is stronger when corporate governance is weak as measured by low institutional ownership; (2) “pay-for-luck” persists as remuneration increases with random positive shocks, even when the CEO has equity awards that explicitly condition on firm performance relative to peer firms in the same sector. A major reason why relative performance contracts do not eliminate pay for luck is that CEOs who fail to meet the terms of their past performance awards are able to obtain more generous new equity rewards in the future in weakly governed firms. We show the mechanism operates both through the quantum of shares and the structure of new contracts. These findings suggest that reforms to the formal structure of CEO pay contracts are unlikely to align incentives in the absence of strong corporate governance.

Internal Control Quality and Bank Risk-Taking and Performance

2020 ◽  
Author(s):  
Matthew Baugh ◽  
Matthew Ege ◽  
Christopher G. Yust
Keyword(s):  
Internal Control ◽  
Risk Taking ◽  
Downside Risk ◽  
Internal Controls ◽  
Bank Risk ◽  
Material Weakness ◽  
Control Quality ◽  
Interest Income ◽  
Upside Risk ◽  
And Performance

Using a sample of bank-years from 2005 to 2017, we examine the effect of internal control quality on future risk-taking and performance. We find that banks that disclose a material weakness in internal controls have higher risk-taking and worse performance in the future, including having a higher (lower) likelihood of experiencing large losses (gains). These findings suggest that weak controls increase (reduce) downside (upside) risk-taking or conversely that strong controls increase (reduce) upside (downside) risk-taking. Path analyses suggest that 22.3 to 43.7 percent of the effect of internal control quality on future performance is through risk-taking. Additionally, material weaknesses are negatively associated with total asset, loan, interest income, and non-interest income growth, suggesting that internal control quality affects both core and non-core activities of banks. Overall, results suggest that strong internal controls improve bank risk-taking, in part through asymmetrically reducing downside risk-taking while facilitating upside risk-taking, ultimately improving bank performance.

The Decoupling of CEO Pay and Performance: An Agency Theory Perspective

1989 ◽  
Vol 34 (2) ◽  
pp. 169 ◽  
Author(s):  
Henry L. Tosi ◽  
Luis R. Gomez-Mejia
Keyword(s):  
Agency Theory ◽  
Ceo Pay ◽  
And Performance

Analysis of the Nexus between CEO Pay and Performance of Non-Financial Listed Firms in Nigeria

2017 ◽  
Vol 29 (3) ◽  
pp. 429-445 ◽  
Author(s):  
Clement Olalekan Olaniyi ◽  
Olufemi Bodunde Obembe ◽  
Emmanuel Oluwole Oni
Keyword(s):  
Listed Firms ◽  
Ceo Pay ◽  
And Performance

scholarly journals Entrepreneurial Mindset and Performance of Small and Medium Scale Enterprises in Makurdi Metropolis, Benue State-Nigeria

2018 ◽  
Vol 6 (2) ◽  
pp. 124-146 ◽  
Author(s):  
Emmanuel Lubem Asenge ◽  
Hembadoon Sarah Diaka ◽  
Alexander Terna Soom
Keyword(s):  
Social Sciences ◽  
Risk Taking ◽  
Sampling Method ◽  
Critical Factor ◽  
Major Effect ◽  
Policy Makers ◽  
Medium Scale ◽  
Business Opportunities ◽  
And Performance ◽  
Selection Of

Many studies indicates that entrepreneurial mindset is a critical factor in the accumulation, evaluation and selection of the knowledge which can lead an individual into potential business opportunities thereby enhancing entrepreneurial outcomes such as firm performance. This study examined the effect of entrepreneurial mindset on the performance of small and medium scale enterprises in Benue State. The focus of the research was to measure the entrepreneurs’ mindset exhibited through innovativeness, creativity, business alertness and risk taking and how these attributes contributed to the performance of SMEs. The research focused on a population of 650 small and medium scale enterprises based in Makurdi metropolis. A questionnaire was used to collect data from a sample of 250 SMEs in Makurdi metropolis which were selected through stratified random sampling method. Collected data were analyzed using descriptive and inferential statistics with the aid of Statistical Package for Social Sciences (SPSS). Correlation and multiple regression analysis were employed to analyse the data and test the hypotheses. The study revealed that innovativeness, creativity, business alertness and risk taking were significant in affecting performance of SMEs. The study concluded that entrepreneurial mindset or lack of it has a major effect on SMEs performance and if any economy is bended towards development and growth, it would have to embrace this concept. It recommended that all the policy makers and all stake holders should re-strategize and create forums that can promote entrepreneurial mindset among the existing and potential entrepreneurs.

scholarly journals PENGARUH KOMPENSASI DAN BUDAYA ORGANISASI TERHADAP KINERJA DENGAN MEDIASI KEPUASAN KERJA PERAWAT DI RUANG RAWAT INAP RSUD KARDINAH KOTA TEGAL

2019 ◽  
Vol 3 (1) ◽  
Author(s):  
Nur Fitriani ◽  
Mr. Basukiyatno
Keyword(s):  
Job Satisfaction ◽  
Organizational Culture ◽  
Risk Taking ◽  
Affective Commitment ◽  
Positive Influence ◽  
Hospital Inpatient ◽  
Validity And Reliability ◽  
Instrument Validity ◽  
And Performance ◽  
Positive Effect

The purpose of this study is to examine and analyze the effect of compensation and organizational culture on performance by mediating job satisfaction of nurses. In this study, the population was all nurses in the Civil Hospital inpatient Kardinah. The sampling method using purposive sampling. Retrieval of data using questionnaires. Tests conducted by the research instrument validity and reliability, statistical test equipment being used is multiple regression analysis, R2 test and t-test, to test the significance of regression coefficients generated. The results showed that compensation is positive and significant effect on affective commitment, job satisfaction and commitment continuants, but had no effect on performance. Organizational culture of innovation and risk-taking has positive influence on affective commitment and performance. Results-oriented organizational culture has a positive effect on job satisfaction and performance. People-oriented organizational culture has a positive effect on job satisfaction. Affective commitment and commitment continuants positive effect on job satisfaction but had no effect on performance. Job satisfaction has a positive effect on performance. Affective commitment, job satisfaction and commitment continuants is purely capable of mediating variables to explain the effect of indirect compensation to performance. Affective commitment and job satisfaction are not able to explain the indirect effect of organizational culture of innovation and risk-taking on the performance of nurses in hospitals Kardinah Tegal City.Keywords: compensation, organizational culture, , job satisfaction and performance of nurses

Self-efficacy, risk taking and performance in rock climbing

2008 ◽  
Vol 45 (1) ◽  
pp. 75-81 ◽  
Author(s):  
David J. Llewellyn ◽  
Xavier Sanchez ◽  
Amanda Asghar ◽  
Gareth Jones
Keyword(s):  
Risk Taking ◽  
Self Efficacy ◽  
Rock Climbing ◽  
And Performance
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