Does stock option-based executive compensation induce risk-taking? An analysis of the banking industry
By Carl R. Chen, Thomas Steiner, A. Whyte. 2006
370 citations recorded by the source corpus.
Subfields: Accounting, Finance
View Paper: https://www.semanticscholar.org/paper/207768010a28ec533730e77a5abe543aa269807c
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In Accounting
- Fulbert Tchana Tchana
- Issouf Soumaré
- D. Anginer
- Alaa Guidara
- Van Son Lai
- Francesco Vallascas
- K. Ma
- Asli Demirgüç-Kunt
In Finance
- D. Anginer
- Francesco Vallascas
- Asli Demirgüç-Kunt
- Issouf Soumaré
- Fulbert Tchana Tchana
- Harry Huizinga
- Alaa Guidara
- Van Son Lai
Citations in the corpus
- Corporate Governance and Bank Insolvency Risk: International Evidence (2014, positive): “Chen, Steiner, and Whyte (2006), in turn, find a positive impact of option-based executive compensation and wealth on market measures of risk for a sample of US commercial banks during the period 1992-2000.”
- CEO pay incentives and risk-taking: Evidence from bank acquisitions (2011, background): “Second, previous work on management compensation and risk-taking analyzes risk on the basis of either market indicators (Chen et al., 2006; Datta et al., 2001) or accounting indicators (Rajgopal and Shivaram, 2002; Coles et al.”
- Banks’ Capital Buffer, Risk and Performance in the Canadian Banking System: Impact of Business Cycles and Regulatory Changes (2013, methodology): “…al (1997) and Calmès and Théoret (2010), among others.6 We add an additional factor for exchange rate risk to the market multifactor model used by Chen et al (2006) and Pathan (2009) as follows: Rj,t= 0,t + m,j Rm,t+ I,j UI,t+ x,jUx,t + ɛj,t, where Rj,t is the equity return of bank j at time t,…”
- Executive Compensation and Competition in the Banking and Financial Sectors (2009, neutral): “Note that the automatic reaction of options to share prices may induce to some perverse incentives, as pointed out by Chen et al. (2006) , Burns and Kedia (2008)”
- CORPORATE GOVERNANCE OF BANKS: A SURVEY (2016, neutral): “32 Chen et al. (2006) argue that this problem might be more acute in banking industry since stock option-based compensation is more prevalent at banks than at non-fi a cial firms.”