We analyze the payout channel choice of listed UK firms and examine whether the choice between dividends, share repurchases, a combination of payout channels, or
complete earnings retention is affected by investor sentiment, taxation, major shareholder ownership, and in particular the CEO?s compensation package.
The payout choice can have an immediate effect on the value of the CEO?s stock options and restricted stock, whereby anticipated dividends drive down the value of her equity-based pay if it is not dividend-protected whereas share repurchases may have a positive impact. We use a quantile regression analysis to examine various payout scenarios as well as a nested logit model which studies payout choice conditional on changing payout levels. We find that it is the CEO?s personal wealth as reflected by her compensation package rather than shareholder preferences which has the strongest impact on the firm?s payout policy.
We study the role of facial appearance in corporate director (re-)elections by means of director photographs published in annual reports. We find that shareholders use inferences from facial appearance in corporate elections, as a better (higher...Read more
By means of social network methodology, we analyze the labor market (turnover and appointments) of executive and non-executive directors. Directors with strong networks are able to obtain labor market information that generates opportunities and...Read more
We examine how dividend policy is used to mitigate potential conflicts of interest between majority and minority shareholders in private Norwegian firms. The average payout is 50% higher if the majority shareholder’s equity stake is 55% (high...Read more
The executive compensation literature reports inconclusive results for CEO option-based compensation’s impact on firm value. We hypothesize that having major customers raises the costs associated with option compensation, leading to a lower...Read more