How to cite this paper
Al-Own, B. (2020). CEO inside debt compensation determinants and bank performance: Empirical evidence from Europe.Accounting, 6(6), 1139-1150.
Refrences
Acrey, J., McCumber, W., & Nguyen, T. (2011). CEO incentives and bank risk. Journal of Economics and Business, 63, 456-471.
Akram, M. A., Hunjra, A. I., Butt, S., and Ijaz, I. (2015). Earnings management and organizational performance: Pakistan VS India. Basic Research Journal of Business Management and Accounts, 4(9), 211-220.
Alhadab, M., & Al-Own, B. (2019). Earnings management and equity incentives: evidence from the European banking industry. International Journal of Accounting and Information Management, 27(2), 244-261.
Allen, S.G., & Clark, R.L. (1987). Pensions and Firm Performance. In Human Resources and the Performance of the Firm. edited by M.M. Kleiner, R.N. Block, M. Roomkin and S.W. Salsburg, Industrial Relations Research Association, 195-242
Anantharaman, D., Fang, V. W., & Gong, G. (2014). Inside debt and the design of corporate debt contracts. Management Science, 60(5), 1260–1280.
Bai, G., & Elyasiani, E. (2013). Bank stability and managerial compensation. Journal of Banking and Finance, 37, 799–813.
Bebchuk, L., & Jackson, R. (2005). Executive pensions. Journal of Corporate Law, 30, 823–855.
Begley, J. (1994). Restrictive covenants included in public debt agreements: an empirical investigation. Working Paper, University of British Columbia.
Begley, J., & Feltham, G. A. (1999). An empirical examination of the relation between debt contracts and management incentives. Journal of Accounting and Economics, 27, 229–259.
Bekkum, S. V. (2016). Inside debt and bank risk. Journal of Financial and Quantitative Analysis, 51(2),359-385.
Bennett, R., Guntay, L., & Unal, H. (2012). Inside debt, bank default risk and performance during the Crisis. FDIC Center for Financial Research, Working Paper No. 2012-3.
Black, F., & Scholes, M. (1973). The pricing of options and corporate liabilities. Journal of Political Economy, 81, 637–654.
Bolton, P., Mehran, H., & Shapiro, J. (2015). Executive compensation and risk taking. Review of Finance, 19(6), 2139-2181.
Buck, T., Bruce, A., Main, B. G. M., & Udueni, H. (2003). Long term incentive plans, executive Pay and UK company performance. Journal of Management Studies, 40(7), 1709-1727.
Cadman, B., & Vincent, L. (2014). The role of defined benefit pension plans in executive compensation. European Accounting Review, 24(4), 779-800
Cao, J., Pan, X., & Tian, G. (2011). Disproportional ownership structure and pay-performance relationship: evidence from China’s listed firms. Journal of Corporate Finance, 17, 541-54.
Cardone-Riportella, C., Samaniego-Medina, R., & Trujillo-Ponce, A. (2010). What drives bank securitisation? The Spanish experience. Journal of Banking and Finance, 34, 2639–2651.
Cassell, C.A., Huang, S.X., Sanchez, J.M., & Stuart, M.D. (2012). Seeking safety: the relation between CEO inside debt holdings and the riskiness of firm investment and financial policies. Journal of Financial Economics, 103, 588–610.
Cen, W. (2011). The Determinants of CEO Inside Debt and Its Components. SSRN
Chen, C. R., Steiner, T. L., & Whyte, A. M. (2006). Does stock option-based executive compensation induce risk-taking? An analysis of the banking industry. Journal of Banking and Finance, 30, 915–945.
Cheng, Q, Warfield, T., & Ye, M. (2011). Equity Incentives and Earnings Management: Evidence from the Banking Industry. Journal of Accounting, Auditing and Finance, 26(2), 317-349.
Choy, H., Lin, J., & Officer, M. S. (2014). Does freezing a defined benefit pension plan affect firm risk?. Journal of Accounting and Economics, 57(1), 1–21.
Claessens, S., & van Horen, N. (2015). The impact of the global financial crisis on banking globalization. IMF Economic Review, 63, 868-918.
Coles, J. L., Daniel, N. D., & Naveen, L. (2006). Managerial incentives and risk-taking. Journal of Financial Economics, 79 (2), 431-468.
Conyon, M. J., & Murphy, K. J. (2000). The prince and the pauper? CEO pay in the US and UK. The Economic Journal, 110 (467), 640-671.
Core, J., & Guay, W. (1999). The use of equity grants to manage optimal equity incentive levels. Journal of Accounting and Economics, 28, 151–184.
Core, J., Holthausen, R., & Larcker, D. (1999). Corporate governance, chief executive officer compensation, and firm performance. Journal of Financial Economics, 51(3), 371–406.
Core, J.E., & Guay, W. (2002). Estimating the value of employee stock option portfolios and their sensitivities to price and volatility. Journal of Accounting Research, 40(3), 613-630.
Dang, V. (2019). The effects of loan growth on bank performance: Evidence from Vietnam. Management Science Letters, 9(6), 899-910.
Edmans, A. (2006). “Inside debt”. Working paper, MIT Sloan School of Business.
Edmans, A., & Liu, Q. (2011). Inside debt. Review of Finance, 15, 75–102.
European Insurance and Occupational Pensions Authority (2013). Financial Stability Report”, Second Half-Year Report 2013. Technical Report, EIOPA.
Fahlenbrach, R., & Stulz, R. (2011). Bank CEO Incentives and the credit crisis. Journal of Financial Economics, 99, 11-26.
Frye, M.B. (2004). Equity‐based compensation for employees: firm performance and determinants. Journal of Financial Research, 27(1), 31-54.
Galdeano, D., Ahmed, U., Fati, M., Rehan, R., & Ahmed, A. (2019). Financial performance and corporate social responsibility in the banking sector of Bahrain: Can engagement moderate?. Management Science Letters, 9(10), 1529-1542.
Gao, H. (2010). Optimal compensation contracts when managers can hedge. Journal of Financial Economics, 97, 218–238.
Gerakos, J. (2008). CEO pensions: Disclosure, managerial power, and optimal contracting. Working paper, University of Chicago.
Gerakos, J. (2010). Chief executive officer and the pay-pension trade off. Journal of Pension Economics and Finance, 9(2), 303–319.
Guay, W. (1999). The sensitivity of CEO wealth to equity risk: An analysis of the magnitude and determinants. Journal of Financial Economics, 53(1), 43–71.
Guo, W. C., Shiah-Hou, S. R., & Yang, Y. W. (2006). Stock bonus compensation and firm performance in Taiwan. Managerial finance, 32(11), 862-885.
Hagendorff, J., & Vallascas, F. (2011). CEO pay incentives and risk-taking: Evidence from bank acquisitions. Journal of Corporate Finance, 17, 1078–1095.
Jagtiani, J., Kaufman, G., & Lemieux, C. (2002). The effect of credit risk on bank and bank holding company bond yields: Evidence from the post-FDICIA period. Journal of Financial Research, 25(4), 559–575.
Jensen, M., & Murphy, K.J. (1990). Performance pay and top-management incentives. Journal of Political Economy, 98(2), 225-264.
Jensen, M., & Meckling, W. (1976). Theory of the firm: managerial behavior, agency costs, and capital structure. Journal of Financial Economics, 3, 305–360.
Kato, T., & Kubo, K. (2006). CEO compensation and firm performance in Japan: evidence from new panel data on individual CEO pay. Journal of the Japanese and International Economies, 20, 1–19.
Lazear, E. (1979). Why is there mandatory retirement? . Journal of Political Economy, 87, 1261– 1284.
Lazear, E. (1983). Pensions as severance pay. In Financial Aspects of the United States Pension System, University of Chicago Press, Chicago, 57–85.
Liu, Y., Mauer, D.C., & Zhang, Y. (2014). Firm cash holdings and CEO inside debt. Journal of Banking and Finance, 42, 83-100.
Ma, T., Jiang, M., & Yuan, X. (2020). Pay me later is not always positively associated with bank risk reduction—From the perspective of long-term compensation and black box effect. Sustainability, 12(35), 1-26.
Matsunaga, S. R. (1995). The effects of financial reporting costs on the use of employee stock options. Accounting Review, 70 (1), 1–26.
Mehran, H., (1995). Executive compensation structure, ownership, and firm performance. Journal of Financial Economics, 38, 163–184.
Milidonis, A., Nishikawa, T., & Shim, J. (2017). CEO inside debt and risk taking: Evidence from property–liability insurance firms. The Journal of Risk and Insurance, 86(2), 451-477.
Murphy, K. J. (2013). Executive compensation: Where we are, and how we got there. In Handbook of the Economics of Finance, Volume 2A: Corporate Finance, edited by George M. Constantinides, Milton Harris, and Rene M. Stulz, 211–356. Oxford and Amsterdam: Elsevier, North-Holland.
Ongore, V.O., & Kusa, G.B. (2013). Determinants of financial performance of commercial banks in Kenya. International Journal of Economics and Financial Issues, 3(1), 237-252.
Rogers, D. (2002). Does executive portfolio structure affect risk management? CEO risk-taking incentives and corporate derivatives usage. Journal of Banking and Finance, 26, 271–295.
Sheikh, S. (2020). CEO inside debt and corporate social responsibility. International Journal of Managerial Finance, 16(4), 525-546.
Srivastav, A., Armitage, S., & Hagendorff, J. (2014). CEO inside debt holdings and risk shifting: Evidence from bank payout policies. Journal of Banking and Finance, 47(10), 41-53.
Sundaram, R., & Yermack, D. (2007). Pay me later: inside debt and its role in managerial compensation. Journal of Finance, 62, 1551–1588.
Tung, F., & Wang, X. (2011). Bank CEOs, inside debt compensation, and the financial crisis. Working Paper, Emory University.
Wei, C., & Yermack, D. (2011). Investor reactions to CEOs’ Inside debt incentives. Review of Financial Studies, 24(11), 3813–3840.
Wen, W. (2010). Ownership Structure and Banking Performance: New Evidence in China. Unpublished thesis (PhD), Universitat Autonama De Barcelona.
Wu, T.H., & Lin, M.C. (2019). Relationship of CEO inside debt and corporate social performance: A data envelopment analysis approach. Finance Research Letters, 29, 308–314.
Akram, M. A., Hunjra, A. I., Butt, S., and Ijaz, I. (2015). Earnings management and organizational performance: Pakistan VS India. Basic Research Journal of Business Management and Accounts, 4(9), 211-220.
Alhadab, M., & Al-Own, B. (2019). Earnings management and equity incentives: evidence from the European banking industry. International Journal of Accounting and Information Management, 27(2), 244-261.
Allen, S.G., & Clark, R.L. (1987). Pensions and Firm Performance. In Human Resources and the Performance of the Firm. edited by M.M. Kleiner, R.N. Block, M. Roomkin and S.W. Salsburg, Industrial Relations Research Association, 195-242
Anantharaman, D., Fang, V. W., & Gong, G. (2014). Inside debt and the design of corporate debt contracts. Management Science, 60(5), 1260–1280.
Bai, G., & Elyasiani, E. (2013). Bank stability and managerial compensation. Journal of Banking and Finance, 37, 799–813.
Bebchuk, L., & Jackson, R. (2005). Executive pensions. Journal of Corporate Law, 30, 823–855.
Begley, J. (1994). Restrictive covenants included in public debt agreements: an empirical investigation. Working Paper, University of British Columbia.
Begley, J., & Feltham, G. A. (1999). An empirical examination of the relation between debt contracts and management incentives. Journal of Accounting and Economics, 27, 229–259.
Bekkum, S. V. (2016). Inside debt and bank risk. Journal of Financial and Quantitative Analysis, 51(2),359-385.
Bennett, R., Guntay, L., & Unal, H. (2012). Inside debt, bank default risk and performance during the Crisis. FDIC Center for Financial Research, Working Paper No. 2012-3.
Black, F., & Scholes, M. (1973). The pricing of options and corporate liabilities. Journal of Political Economy, 81, 637–654.
Bolton, P., Mehran, H., & Shapiro, J. (2015). Executive compensation and risk taking. Review of Finance, 19(6), 2139-2181.
Buck, T., Bruce, A., Main, B. G. M., & Udueni, H. (2003). Long term incentive plans, executive Pay and UK company performance. Journal of Management Studies, 40(7), 1709-1727.
Cadman, B., & Vincent, L. (2014). The role of defined benefit pension plans in executive compensation. European Accounting Review, 24(4), 779-800
Cao, J., Pan, X., & Tian, G. (2011). Disproportional ownership structure and pay-performance relationship: evidence from China’s listed firms. Journal of Corporate Finance, 17, 541-54.
Cardone-Riportella, C., Samaniego-Medina, R., & Trujillo-Ponce, A. (2010). What drives bank securitisation? The Spanish experience. Journal of Banking and Finance, 34, 2639–2651.
Cassell, C.A., Huang, S.X., Sanchez, J.M., & Stuart, M.D. (2012). Seeking safety: the relation between CEO inside debt holdings and the riskiness of firm investment and financial policies. Journal of Financial Economics, 103, 588–610.
Cen, W. (2011). The Determinants of CEO Inside Debt and Its Components. SSRN
Chen, C. R., Steiner, T. L., & Whyte, A. M. (2006). Does stock option-based executive compensation induce risk-taking? An analysis of the banking industry. Journal of Banking and Finance, 30, 915–945.
Cheng, Q, Warfield, T., & Ye, M. (2011). Equity Incentives and Earnings Management: Evidence from the Banking Industry. Journal of Accounting, Auditing and Finance, 26(2), 317-349.
Choy, H., Lin, J., & Officer, M. S. (2014). Does freezing a defined benefit pension plan affect firm risk?. Journal of Accounting and Economics, 57(1), 1–21.
Claessens, S., & van Horen, N. (2015). The impact of the global financial crisis on banking globalization. IMF Economic Review, 63, 868-918.
Coles, J. L., Daniel, N. D., & Naveen, L. (2006). Managerial incentives and risk-taking. Journal of Financial Economics, 79 (2), 431-468.
Conyon, M. J., & Murphy, K. J. (2000). The prince and the pauper? CEO pay in the US and UK. The Economic Journal, 110 (467), 640-671.
Core, J., & Guay, W. (1999). The use of equity grants to manage optimal equity incentive levels. Journal of Accounting and Economics, 28, 151–184.
Core, J., Holthausen, R., & Larcker, D. (1999). Corporate governance, chief executive officer compensation, and firm performance. Journal of Financial Economics, 51(3), 371–406.
Core, J.E., & Guay, W. (2002). Estimating the value of employee stock option portfolios and their sensitivities to price and volatility. Journal of Accounting Research, 40(3), 613-630.
Dang, V. (2019). The effects of loan growth on bank performance: Evidence from Vietnam. Management Science Letters, 9(6), 899-910.
Edmans, A. (2006). “Inside debt”. Working paper, MIT Sloan School of Business.
Edmans, A., & Liu, Q. (2011). Inside debt. Review of Finance, 15, 75–102.
European Insurance and Occupational Pensions Authority (2013). Financial Stability Report”, Second Half-Year Report 2013. Technical Report, EIOPA.
Fahlenbrach, R., & Stulz, R. (2011). Bank CEO Incentives and the credit crisis. Journal of Financial Economics, 99, 11-26.
Frye, M.B. (2004). Equity‐based compensation for employees: firm performance and determinants. Journal of Financial Research, 27(1), 31-54.
Galdeano, D., Ahmed, U., Fati, M., Rehan, R., & Ahmed, A. (2019). Financial performance and corporate social responsibility in the banking sector of Bahrain: Can engagement moderate?. Management Science Letters, 9(10), 1529-1542.
Gao, H. (2010). Optimal compensation contracts when managers can hedge. Journal of Financial Economics, 97, 218–238.
Gerakos, J. (2008). CEO pensions: Disclosure, managerial power, and optimal contracting. Working paper, University of Chicago.
Gerakos, J. (2010). Chief executive officer and the pay-pension trade off. Journal of Pension Economics and Finance, 9(2), 303–319.
Guay, W. (1999). The sensitivity of CEO wealth to equity risk: An analysis of the magnitude and determinants. Journal of Financial Economics, 53(1), 43–71.
Guo, W. C., Shiah-Hou, S. R., & Yang, Y. W. (2006). Stock bonus compensation and firm performance in Taiwan. Managerial finance, 32(11), 862-885.
Hagendorff, J., & Vallascas, F. (2011). CEO pay incentives and risk-taking: Evidence from bank acquisitions. Journal of Corporate Finance, 17, 1078–1095.
Jagtiani, J., Kaufman, G., & Lemieux, C. (2002). The effect of credit risk on bank and bank holding company bond yields: Evidence from the post-FDICIA period. Journal of Financial Research, 25(4), 559–575.
Jensen, M., & Murphy, K.J. (1990). Performance pay and top-management incentives. Journal of Political Economy, 98(2), 225-264.
Jensen, M., & Meckling, W. (1976). Theory of the firm: managerial behavior, agency costs, and capital structure. Journal of Financial Economics, 3, 305–360.
Kato, T., & Kubo, K. (2006). CEO compensation and firm performance in Japan: evidence from new panel data on individual CEO pay. Journal of the Japanese and International Economies, 20, 1–19.
Lazear, E. (1979). Why is there mandatory retirement? . Journal of Political Economy, 87, 1261– 1284.
Lazear, E. (1983). Pensions as severance pay. In Financial Aspects of the United States Pension System, University of Chicago Press, Chicago, 57–85.
Liu, Y., Mauer, D.C., & Zhang, Y. (2014). Firm cash holdings and CEO inside debt. Journal of Banking and Finance, 42, 83-100.
Ma, T., Jiang, M., & Yuan, X. (2020). Pay me later is not always positively associated with bank risk reduction—From the perspective of long-term compensation and black box effect. Sustainability, 12(35), 1-26.
Matsunaga, S. R. (1995). The effects of financial reporting costs on the use of employee stock options. Accounting Review, 70 (1), 1–26.
Mehran, H., (1995). Executive compensation structure, ownership, and firm performance. Journal of Financial Economics, 38, 163–184.
Milidonis, A., Nishikawa, T., & Shim, J. (2017). CEO inside debt and risk taking: Evidence from property–liability insurance firms. The Journal of Risk and Insurance, 86(2), 451-477.
Murphy, K. J. (2013). Executive compensation: Where we are, and how we got there. In Handbook of the Economics of Finance, Volume 2A: Corporate Finance, edited by George M. Constantinides, Milton Harris, and Rene M. Stulz, 211–356. Oxford and Amsterdam: Elsevier, North-Holland.
Ongore, V.O., & Kusa, G.B. (2013). Determinants of financial performance of commercial banks in Kenya. International Journal of Economics and Financial Issues, 3(1), 237-252.
Rogers, D. (2002). Does executive portfolio structure affect risk management? CEO risk-taking incentives and corporate derivatives usage. Journal of Banking and Finance, 26, 271–295.
Sheikh, S. (2020). CEO inside debt and corporate social responsibility. International Journal of Managerial Finance, 16(4), 525-546.
Srivastav, A., Armitage, S., & Hagendorff, J. (2014). CEO inside debt holdings and risk shifting: Evidence from bank payout policies. Journal of Banking and Finance, 47(10), 41-53.
Sundaram, R., & Yermack, D. (2007). Pay me later: inside debt and its role in managerial compensation. Journal of Finance, 62, 1551–1588.
Tung, F., & Wang, X. (2011). Bank CEOs, inside debt compensation, and the financial crisis. Working Paper, Emory University.
Wei, C., & Yermack, D. (2011). Investor reactions to CEOs’ Inside debt incentives. Review of Financial Studies, 24(11), 3813–3840.
Wen, W. (2010). Ownership Structure and Banking Performance: New Evidence in China. Unpublished thesis (PhD), Universitat Autonama De Barcelona.
Wu, T.H., & Lin, M.C. (2019). Relationship of CEO inside debt and corporate social performance: A data envelopment analysis approach. Finance Research Letters, 29, 308–314.