Agenda

22 Giu 2018 14:30

The Impact of Managerial Pay Disparity on Capital Structure: New Insights from the Bond Market

Aula Volpato Dipartimento di Management, San Giobbe

Seminar held by Prof. Chinmoy Ghosh, University of Connecticut

Prior literature suggests three alternative explanations for CEO pay gap: tournament incentives, CEO productivity, and CEO entrenchment. In this study, we examine the impact of CEO pay gap on debt contracting. We find negative relations between CEO pay gap and cost of debt and default risk, but a positive relation between CEO pay gap and debt maturity. Additional analysis indicates that these results are concentrated in firms with entrenched CEOs. Collectively, our findings are consistent with the CEO entrenchment explanation for CEO pay gap.

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L'evento si terrà in italiano

Organizzatore

Dipartimento di Management

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