Shah, SZA, Akbar, S, Liu, JL ORCID: https://orcid.org/0000-0002-2978-6022, Liu, Z and Cao, S
2017,
'CEO compensation and banks’ risk-taking during pre and post financial crisis periods'
, Research in International Business and Finance, 42
, pp. 1489-1503.
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Abstract
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.
Item Type: | Article |
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Schools: | Schools > Salford Business School > Salford Business School Research Centre |
Journal or Publication Title: | Research in International Business and Finance |
Publisher: | Elsevier |
ISSN: | 0275-5319 |
Related URLs: | |
Depositing User: | JL Liu |
Date Deposited: | 14 Aug 2017 11:58 |
Last Modified: | 15 Feb 2022 22:20 |
URI: | http://usir.salford.ac.uk/id/eprint/43526 |
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