Year: 2011
Type: article
Abstract: This paper examines the impact of the newly appointed CEOs on firms future investment decisions and whether the relation is affected by the equity-based compensation, corporate governance provisions and other CEO characteristics. Using CEO turnover data from 1992-2004, the results show that new CEOs with high options-based compensation, following forced turnover and with shorter organization tenure, are associated with high R&D and advertisement investments. These results are consistent with the managerial incentive effect and the dismissal effect.
Authors: Chan Du, Ting-Ting Lin
Institutions: University of Massachusetts Dartmouth, Ohio University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W2181918263