Institutional Investors and CEO Compensation: Does the Composition of Institutional Ownership Matter? - Couverture souple

Shin, Jae Yong

 
9783836469111: Institutional Investors and CEO Compensation: Does the Composition of Institutional Ownership Matter?
Couverture souple
ISBN 10 : 3836469111 ISBN 13 : 9783836469111
Editeur : VDM Verlag Dr. Müller, 2008

Synopsis

Institutional investors have become increasingly important as equity holders in the U.S. financial market. This book investigates the relation between the structure of CEO compensation and the composition of firms' institutional ownership in terms of investment horizons and legal type. Consistent with regulators' and investors' concerns that myopic investment behavior by some institutional investors leads managers to fear an earnings disappointment, I provide evidence that in companies with more shares held by institutions with short-term investment horizons, executive compensation is structured with preference towards these short-term institutions' preferences (e.g., more use of stock options that do not need to be expensed and larger annual bonus penalties for missing quarterly earnings benchmarks). By documenting one potential consequence of firms' ownership structure that related to the various classes of institutional shareholders in term of investment horizons, this book should be of interest to regulators, investors, board of directors, and academicians who may need to identify and mitigate undue influences from short-sighted institutional investors.

Les informations fournies dans la section « Synopsis » peuvent faire référence à une autre édition de ce titre.

Présentation de l'éditeur

Institutional investors have become increasingly important as equity holders in the U.S. financial market. This book investigates the relation between the structure of CEO compensation and the composition of firms' institutional ownership in terms of investment horizons and legal type. Consistent with regulators' and investors' concerns that myopic investment behavior by some institutional investors leads managers to fear an earnings disappointment, I provide evidence that in companies with more shares held by institutions with short-term investment horizons, executive compensation is structured with preference towards these short-term institutions' preferences (e.g., more use of stock options that do not need to be expensed and larger annual bonus penalties for missing quarterly earnings benchmarks). By documenting one potential consequence of firms' ownership structure that related to the various classes of institutional shareholders in term of investment horizons, this book should be of interest to regulators, investors, board of directors, and academicians who may need to identify and mitigate undue influences from short-sighted institutional investors.

Biographie de l'auteur

Jae Yong Shin is an Assistant Professor in the Department of Accountancy at the University of Illinois at Urbana-Champaign. He received his Ph.D. degree from the University of Wisconsin-Madison. His research interests are in the area of managerial accounting. His articles have appeared in The Accounting Review and Journal of Business Ethics.

Les informations fournies dans la section « A propos du livre » peuvent faire référence à une autre édition de ce titre.

Éditeur
VDM Verlag Dr. Müller
Date d'édition
2008
Langue
anglais
ISBN 10 
3836469111
ISBN 13 
9783836469111
Reliure
Broché
Nombre de pages
152
Coordonnées du fabricant
non disponible
Personne responsable
non disponible