Managerial Finance: Volume 25 Issue 10

Multinationality, CEO compensation, and corporate governance: some empirical evidence

Robert L. Lippert, Manzur Rahman

Looks at previous research on the differences between multinational corporations (MNCs) and domestic corporations (DCs) and the theories underlying them, relating the ideas to…

Structuring more‐effective executive severance contracts

Jeffrey A. Born, Hugo J. Faria, Emery A. Trahan

Explains why executive severance contracts contingent on a change in control (i.e. golden parachutes) have developed and reviews previous relevant research. Develops a…

The association between bank performance, board independence, and CEO pay‐performance sensitivity

Chandra S. Mishra, James F. Nielsen

Outlines previous research on the links between board composition, firm performance and chief executive officer (CEO) compensation, and presents a study of CEO pay‐performance…

Executive compensation and the horizon problem: a synthesis of the economics of age and decision management

John D. McGinnis, James A. Miles, Shin‐Herng Michelle Chu, Terry L. Campbell

Relates previous research on the importance of age in decision‐making to Fama and Jensen’s (1983) ideas on decision management, develops hypotheses on the age of managers and the…

Employee stock options: exercise decisions by top executives

Mark C. Anderson

Reviews previous research on the timing of employee stock option exercise decisions and share price performance before and after insider trading. Analyses the 1992‐1993 exercise…

Incentive structure of CEO stock option pay and stock ownership: the moderating effects of firm risk

Wm. Gerard Sanders

Outlines previous research on the role of executive compensation contracts in reducing conflicts of interest between ownership and control; and develops hypotheses on the effects…

Executive long‐term performance contracts: an empirical analysis of market risk, investment opportunities and leverage in the post‐adoption period

Thomas J. Vogel, John D. McGinnis

Reviews previous research on agency theory, the use of long‐term performance plans to align the interests of managers and shareholders, and the effect of these plans on firm…