Is Additional CEO Remuneration a Performance Driver? DAX CEOs Evidence
Autor(a) principal: | |
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Data de Publicação: | 2023 |
Outros Autores: | , |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.8/9026 |
Resumo: | This study aims to understand the impact of the additional remuneration of the Chief Executive Officer (CEO) over the mean remuneration of the board of directors on firms’ financial performance. The objective is to understand if the highest compensation of the CEO is a firm performance driver. In addition to the impact of total remuneration, the different remuneration components were split and analyzed. An unbalanced panel data of listed companies in DAX–Germany over the period from 2006 until 2019 is analyzed. Using dynamic methodology to estimate the models, the results show that higher additional remuneration positively explains higher firm performance measured using both accounting and market measures. The impact is also evident when additional remuneration components are analyzed. These results support the tournament theory, since when CEOs feel rewarded, they are more efficient in increasing the firm’s performance. Moreover, the firms’ financial characteristics, as well as macroeconomic factors, are also relevant to explaining its performance. |
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Is Additional CEO Remuneration a Performance Driver? DAX CEOs EvidenceCEO remunerationAdditional remunerationRemuneration gapFirm performanceGermanyThis study aims to understand the impact of the additional remuneration of the Chief Executive Officer (CEO) over the mean remuneration of the board of directors on firms’ financial performance. The objective is to understand if the highest compensation of the CEO is a firm performance driver. In addition to the impact of total remuneration, the different remuneration components were split and analyzed. An unbalanced panel data of listed companies in DAX–Germany over the period from 2006 until 2019 is analyzed. Using dynamic methodology to estimate the models, the results show that higher additional remuneration positively explains higher firm performance measured using both accounting and market measures. The impact is also evident when additional remuneration components are analyzed. These results support the tournament theory, since when CEOs feel rewarded, they are more efficient in increasing the firm’s performance. Moreover, the firms’ financial characteristics, as well as macroeconomic factors, are also relevant to explaining its performance.MDPIIC-OnlineCosta, MagaliLisboa, InêsMarzinzik, René2023-12-08T18:35:28Z2023-072023-07-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.8/9026engCosta, M.; Lisboa, I.; Marzinzik, R. Is Additional CEO Remuneration a Performance Driver? DAX CEOs Evidence. Risks 2023, 11, 133. https://doi.org/10.3390/risks11070133https://doi.org/10.3390/risks110701332227-9091info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-01-17T15:58:43Zoai:iconline.ipleiria.pt:10400.8/9026Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-20T01:51:36.736325Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Is Additional CEO Remuneration a Performance Driver? DAX CEOs Evidence |
title |
Is Additional CEO Remuneration a Performance Driver? DAX CEOs Evidence |
spellingShingle |
Is Additional CEO Remuneration a Performance Driver? DAX CEOs Evidence Costa, Magali CEO remuneration Additional remuneration Remuneration gap Firm performance Germany |
title_short |
Is Additional CEO Remuneration a Performance Driver? DAX CEOs Evidence |
title_full |
Is Additional CEO Remuneration a Performance Driver? DAX CEOs Evidence |
title_fullStr |
Is Additional CEO Remuneration a Performance Driver? DAX CEOs Evidence |
title_full_unstemmed |
Is Additional CEO Remuneration a Performance Driver? DAX CEOs Evidence |
title_sort |
Is Additional CEO Remuneration a Performance Driver? DAX CEOs Evidence |
author |
Costa, Magali |
author_facet |
Costa, Magali Lisboa, Inês Marzinzik, René |
author_role |
author |
author2 |
Lisboa, Inês Marzinzik, René |
author2_role |
author author |
dc.contributor.none.fl_str_mv |
IC-Online |
dc.contributor.author.fl_str_mv |
Costa, Magali Lisboa, Inês Marzinzik, René |
dc.subject.por.fl_str_mv |
CEO remuneration Additional remuneration Remuneration gap Firm performance Germany |
topic |
CEO remuneration Additional remuneration Remuneration gap Firm performance Germany |
description |
This study aims to understand the impact of the additional remuneration of the Chief Executive Officer (CEO) over the mean remuneration of the board of directors on firms’ financial performance. The objective is to understand if the highest compensation of the CEO is a firm performance driver. In addition to the impact of total remuneration, the different remuneration components were split and analyzed. An unbalanced panel data of listed companies in DAX–Germany over the period from 2006 until 2019 is analyzed. Using dynamic methodology to estimate the models, the results show that higher additional remuneration positively explains higher firm performance measured using both accounting and market measures. The impact is also evident when additional remuneration components are analyzed. These results support the tournament theory, since when CEOs feel rewarded, they are more efficient in increasing the firm’s performance. Moreover, the firms’ financial characteristics, as well as macroeconomic factors, are also relevant to explaining its performance. |
publishDate |
2023 |
dc.date.none.fl_str_mv |
2023-12-08T18:35:28Z 2023-07 2023-07-01T00:00:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10400.8/9026 |
url |
http://hdl.handle.net/10400.8/9026 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
Costa, M.; Lisboa, I.; Marzinzik, R. Is Additional CEO Remuneration a Performance Driver? DAX CEOs Evidence. Risks 2023, 11, 133. https://doi.org/10.3390/risks11070133 https://doi.org/10.3390/risks11070133 2227-9091 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
MDPI |
publisher.none.fl_str_mv |
MDPI |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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RCAAP |
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RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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1799137007407988736 |