Chen, J orcid.org/0000-0002-4076-7121, Song, W and Goergen, M (2019) Passing the dividend baton: The impact of dividend policy on new CEOs' initial compensation. Journal of Corporate Finance, 56. pp. 458-481. ISSN 0929-1199
Abstract
We examine how firms' dividend policy affects the initial compensation of their newly appointed CEOs. We focus on newly appointed CEOs to isolate the effect of dividends on compensation and to provide new insights into an aspect largely neglected by compensation research. We show that the dividend payout is positively related to new CEO compensation. Further, the positive effect of dividends is stronger for firms with no dividend cuts over the past two, three and four years, firms with relatively high institutional ownership, and those with strong boards, consistent with new CEOs receiving higher pay as compensation for greater dividend pressure.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2019 Elsevier B.V. All rights reserved. This is an author produced version of a paper published in Journal of Corporate Finance. Uploaded in accordance with the publisher's self-archiving policy. |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Accounting & Finance Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 10 Apr 2019 10:35 |
Last Modified: | 29 Jan 2021 10:24 |
Status: | Published |
Publisher: | Elsevier BV |
Identification Number: | 10.1016/j.jcorpfin.2019.04.004 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:144744 |
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