Bank mergers, the market for bank CEOs, and managerial incentives

Journal of Financial Intermediation

Volumn 13, Issue 1, 2004, Pages 6-27

  Anderson, Christopher W ^a   Becher, David A ^b   Campbell II, Terry L ^c  

^a UNIVERSITY OF KANSAS   (United States)

^b DREXEL UNIVERSITY   (United States)

^c UNIVERSITY OF DELAWARE   (United States)

Author keywords

Bank mergers; CEO compensation

Indexed keywords

EID: 0742286742     PISSN: 10429573     EISSN: None     Source Type: Journal    
DOI: 10.1016/S1042-9573(03)00027-5     Document Type: Article

References (34)

1. Ang, J., Lauterbach, B., Schreiber, B., 2002. Pay at the executive suite: How do US banks compensate their top management teams?. J. Banking Finance 26, 1143-1163.
2. Avery, C., Chevalier, J., Schaefer, S., 1998. Why do managers undertake acquisitions? An analysis of internal and external rewards for acquisitions. J. Law, Econ., Organ. 14, 24-43.
3. Barro, J.R., Barro, R.J., 1990. Pay, performance, and turnover of bank CEOs. J. Lab. Econ. 8, 448-481.
4. Becher, D., 2000. The valuation effects of bank mergers. J. Corp. Finance 6, 189-214.
5. Becher, D., Campbell, T., 2002. Megamergers, interstate banking deregulation, and the changing market for corporate control. Working paper. Northern Illinois University, DeKalb, IL.
6. Berger, A., Demsetz, R., Strahan, P., 1999. The consolidation of the financial services industry: Causes, consequences, and implications for the future. J. Banking Finance 23, 135-194.
7. Berry, T.K., Bizjak, J.M., Lemmon, M.L., Naveen, L., 2002. CEO turnover and firm diversification. Working paper. Portland State University, Portland, OR.
8. Bliss, R., Rosen, R., 2001. CEO compensation and bank mergers. J. Finan. Econ. 61, 107-138.
9. Calomiris, C.W., 1999. Gauging the efficiency of bank consolidation during a merger wave. J. Banking Finance 23, 615-621.
10. Crawford, A., Ezzell, J.R., Miles, J., 1995. Bank CEO pay-performance relations and the effects of deregulation. J. Business 68, 231-256.
11. DeLong, G., 2001. Stockholder gains from focusing versus diversifying bank mergers. J. Finan. Econ. 59, 221-252.
12. Demsetz, H., 1995. Management compensation and tournament theory. In: The Economics of the Business Firm: Seven Critical Commentaries. Cambridge Univ. Press, Cambridge, pp. 110-136.
13. Economist, 2001. Deal-making done: The problems at Bank of America lay bare one of banking's dominant myths, that big means better. Economist January 27, 71-72.
14. Gorton, G., Rosen, R., 1995. Corporate control, portfolio choice, and the decline of banking. J. Finance 50, 1377-1420.
15. Hartzell, J., Ofek, E., Yermack, D., in press. What's in it for me? CEOs whose firms are acquired. Rev. Finan. Stud.
16. Himmelberg, C., Hubbard, R.G., 2001. Incentive pay and the market for CEOs: An analysis of pay-for-performance sensitivity. Working paper. Columbia University, New York, NY.
17. Houston, J., James, C., 1995. CEO compensation and bank risk: Is compensation in banking structured to promote risk taking?. J. Monet. Econ. 36, 405-432.
18. Houston, J., James, C., Ryngaert, M., 2001. Where do merger gains come from? Bank mergers from the perspective of insiders and outsiders. J. Finan. Econ. 60, 285-331.
19. Houston, J., Ryngaert, M., 1994. The overall gains from large bank mergers. J. Banking Finance 18, 1155-1176.
20. Hubbard, R.G., Palia, D., 1995. Executive pay and performance: Evidence from the US banking industry. J. Finan. Econ. 39, 105-130.
21. Jensen, M.C., 1989. The eclipse of the public corporation. Harvard Bus. Rev. 67, 61-74.
22. Jensen, M.C., Murphy, K.J., 1990. Performance pay and top-management incentives. J. Polit. Econ. 98, 225-264.
23. Kane, E., 2000. Incentives for banking megamergers: What motives might regulators infer from event-study evidence?. J. Money, Credit, Banking 32, 671-701.
24. Lambert, R., Larcker, D., 1987. Executive compensation effects of large corporate acquisitions. J. Acc. Public Policy 6, 231-243.
25. Lazear, E., Rosen, S., 1981. Rank order tournaments as optimal labor contracts. J. Polit. Economy 89, 841-864.
26. Mehran, H., 1995. Executive compensation structure, ownership, and firm performance. J. Finan. Econ. 38, 163-184.
27. Mehran, H., Nogler, G.E., Schwartz, K.B., 1998. CEO incentive plans and corporate liquidation policy. J. Finan. Econ. 50, 319-349.
28. Mitchell, M., Mulherin, J.H., 1996. The impact of industry shocks on takeover and restructuring activity. J. Finan. Econ. 41, 193-229.
29. Mulherin, J.H., Boone, A.L., 2000. Comparing acquisitions and divestitures. J. Corp. Finance 6, 117-139.
30. Restless Nations Bank sets sights on Chase Manhattan, April 17, 1995. Wall Street J., (April 17), B3.
31. Rose, N.L., Shepard, A., 1997. Firm diversification and CEO compensation: Managerial ability or executive entrenchment? RAND J. Econ. 28, 489-514.
32. Rosen, S., 1986. Prizes and incentives in elimination tournaments. Amer. Econ. Rev. 76, 701-715.
33. Rosen, S., 1992. Contracts and the market for executives. In: Werin, L., Wijkander, H. (Eds.), Contract Economics. Blackwell, Cambridge, MA, pp. 181-211.
34. Talmor, E., Wallace, J.S., 2000. A unified analysis of executive pay: The case of the financial sector. Working paper. London Business School, London, UK.