Author
Upneja, A., Özdemir, Özgür
Publication Date
2014-04
Publication Place
-
Elsevier
Subject
Firm performance, Compensation, CEO, CFO, Agency theory
Type
Periodical
Language
English
Digital
Yes
Manuscript
No
Library
Özyeğin University
Library Asset ID
1873-4693
Record ID
521f4276-6b31-41da-aaa2-58c03a253f6c
Library Location
Hotel Management
Date
2014-04
Notes
Due to copyright restrictions, the access to the full text of this article is only available via subscription.
Sample Text
The current study examines the relationship between executive compensation and firm performance in the U.S. lodging industry. It is not clear-cut whether performance leads to compensation or compensation drives firm performance. Our contention is that cash and lagged equity-based compensation drive the firm performance. Our findings suggest that chief executive officer's (CEO) contemporaneous cash-compensation and one-year lagged equity-compensation positively affect the accounting performance measures return on assets and Tobin's Q; but neither compensation components affects the market-performance measure, stock returns, in the lodging industry. Quantitatively similar findings are found for the chief financial officer (CFO). Further robustness test show that further lags of equity compensation of both named executives do not result in increased stock performance in the lodging industry.
DOI
10.1016/j.ijhm.2013.12.007
Cilt
38
