A1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä
Does managerial pay disparity influence BHC default risk? (2024)
Ali, S., Iqbal, J., Malik, I., & Rahman, D. (2024). Does managerial pay disparity influence BHC default risk?. International Review of Economics and Finance, 92, 1250-1269. https://doi.org/10.1016/j.iref.2024.02.032
JYU-tekijät tai -toimittajat
Julkaisun tiedot
Julkaisun kaikki tekijät tai toimittajat: Ali, Searat; Iqbal, Jamshed; Malik, Ihtisham; Rahman, Dewan
Lehti tai sarja: International Review of Economics and Finance
ISSN: 1059-0560
eISSN: 1873-8036
Julkaisuvuosi: 2024
Ilmestymispäivä: 19.02.2024
Volyymi: 92
Artikkelin sivunumerot: 1250-1269
Kustantaja: Elsevier
Julkaisumaa: Yhdysvallat (USA)
Julkaisun kieli: englanti
DOI: https://doi.org/10.1016/j.iref.2024.02.032
Julkaisun avoin saatavuus: Ei avoin
Julkaisukanavan avoin saatavuus:
Tiivistelmä
This study investigates the relationship between managerial pay disparity (i.e., pay inequality of the CEO with other top executives and other employees) and default risk (measured using an innovative market-based credit default swap spread). The research relies on panel data for 1992 to 2018 from 198 U.S. bank holding companies (BHCs). We find that managerial pay disparity is negatively related to BHC default risk, suggesting greater pay disparity does not necessarily contribute to excessive risk-taking and instability in the banking sector. However, additional analysis reveals that managerial pay disparity is associated with higher default risk among BHCs with assets of less than USD 50 billion. We also find that greater managerial pay disparity is detrimental to BHC stability in the presence of weaker board monitoring (in the form of less gender-diverse boards and higher board co-option). Overall, these findings suggest that BHC size and board monitoring mechanisms are important factors in understanding the influence of managerial pay disparity on BHC stability.
YSO-asiasanat: johtajat; toimitusjohtajat; palkat; palkkaerot; sukupuoli; pankit; investointipankit; riskinotto
Vapaat asiasanat: executive compensation; managerial pay disparity; bank risk-taking; default risk; credit default swap spread; co-opted board; women on board
Liittyvät organisaatiot
OKM-raportointi: Kyllä
VIRTA-lähetysvuosi: 2024
Alustava JUFO-taso: 1
