Is Executive Compensation Different Across S&P Listed Firms?

• Type: Article in International Scientific Journal
• Date: 2008

Authors

Vieito, João (Author) FEP; Cerqueira, António (Author) FEP; Brandão, Elísio (Author) FEP; Walayet, Khan (Author) Other

Journal

Title: Quarterly Journal of Finance and Accounting

Vol. 47 No. 4

Pages: 171-192

ISSN: 1939-8123

Indexing

Econlit

Scientific classification

FOS: Social sciences > Economics and Business

Other information

Abstract (EN): Our research investigation, using 13 years of data from 1992 to 2004, is among the first to analyze whether the total value, determinants and the forms of executive compensation for firms listed on the S&P500, S&P Mid Cap and S&P Small Cap index, are same or different. We also explore whether the determinants, forms, and the total value of executive compensation change after the NASDAQ Crash in 2000 and the enactment of Sarbanes-Oxley (SO) Act in 2002. Our empirical results reveal that generally the average total compensation and component weights are significantly different across S&P index firms during each sample year and also in years before and after NASDAQ crash (2000) and the enactment of (SO) Act (2002). Use of stock options decreases and restricted stocks and bonuses increase after year 2000. We also find that the factors that explain executive compensation in these three groups are generally different and if some of the factors are equal, the intensity of the coefficients is different and statistically significant. Our results also reveal that the determinants and forms of executive compensation indeed change after NASDAQ crash.

Language: English

Type (Professor's evaluation): Scientific