Incentive compensation for bank directors: The impact of deregulation

Journal of Business

Volumn 78, Issue 5, 2005, Pages 1753-1777

  Becher, David A ^a   Campbell II, Terry L ^b   Frye, Melissa B ^c  

^a DREXEL UNIVERSITY   (United States)

^b UNIVERSITY OF DELAWARE   (United States)

^c UNIVERSITY OF CENTRAL FLORIDA   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 32144457431     PISSN: 00219398     EISSN: None     Source Type: Journal    
DOI: 10.1086/431441     Document Type: Review

References (48)

1. Adams, R., and H. Mehran. 2001. Board structure and bank holding company performance. Working paper, Federal Reserve Bank of New York.
2. Baxter, T. C. 2003. Governing the financial or bank holding company: How legal infrastructure can facilitate consolidated risk management. Current Issues in Economics and Finance 9:1-7.
3. Baysinger, B. D., and H. Butler. 1985. Corporate governance and the board of directors: Performance effects of changes in board composition. Journal of Law, Economics, and Organization 1:101-34.
4. Becher, D. A. 2000. The valuation effects of bank mergers. Journal of Corporate Finance 6:199-214.
5. Berger, A., R. Demsetz, and P. Strahan. 1999. The consolidation of the financial services industry: Causes, consequences, and implications for the future. Journal of Banking and Finance 23:135-94.
6. Bhagat, S., D. C. Carey, and E. M. Elson. 1999. Director ownership, corporate performance, and management turnover. Business Lawyer 54:885-919.
7. Booth, R., M. Cornett, and H. Tehranian. 2002. Boards of directors, ownership, and regulation. Journal of Banking and Finance 26:1973-96.
8. Brickley, J. A., S. Bhagat, and R. C. Lease. 1985. The impact of long-range managerial compensation plans on shareholder wealth. Journal of Accounting and Economics 7:115-29.
9. Brickley, J. A., J. S. Linck, and J. L. Coles. 1999. What happens to CEOs after they retire? New evidence on career concerns, horizon problems and CEO incentives. Journal of Financial Economics 52:344-77.
10. Brook, Y., R. Hendershott, and D. Lee. 1998. The gains from takeover deregulation: Evidence from the end of interstate banking restrictions. Journal of Finance 53:2185-2204.
11. Bryan, S., L. Hwang, A. Klein, and S. Lilien. 2000. Compensation of outside directors: An empirical analysis of economic determinants. Working paper, Baruch College, City University of New York.
12. Core, J., and W. Guay. 2001. Stock option plans for non-executive employees. Journal of Financial Economics 61:253-89.
13. Cornett, M. M., H. Mehran, and H. Tehranian. 1998, Are financial markets overly optimistic about the prospects of rims that issue equity? Evidence from voluntary versus involuntary equity issuances by banks. Journal of Finance 53:2139-59.
14. Cornett, M. M., E. Ors, and H. Tehranian. 2002. Bank performance around the introduction of a Section 20 subsidiary. Journal of Finance 57:501-21.
15. Cornett, M. M., and H. Tehranian. 1992. Changes in corporate performance associated with bank acquisitions. Journal of Financial Economics 31:211-34.
16. Cornwell, C., and W. N. Trumbull. 1994. Estimating the econometric model of crime with panel data. Review of Economics and Statistics 76:360-66.
17. Crawford, A., J. R. Ezzell, and J. A. Miles. 1995. Bank CEO pay-performance relations and the effects of deregulation. Journal of Business 68:231-56.
18. Demsetz, H., and K. M. Lehn. 1985. The structure of corporate ownership: Causes and consequences. Journal of Political Economy 93:1155-77.
19. Flannery, M. J., S. H. Kwan, and M. Nimalendran. 2004. Market evidence on the opaqueness of banking firms' assets. Journal of Financial Economics 71:419-60.
20. Gerety, M., C. K. Hoi, and A. Robin. 2001. Do shareholders benefit from the adoption of incentive pay for directors? Financial Management 30:45-61.
21. Gillette, A. B., T. H. Noe, and M. J. Rebello. 2003. Corporate board composition, protocols, and voting behavior: Experimental evidence. Journal of Finance 58:1997-2032.
22. Hall, B. J., and J. B. Liebman. 1998. Are CEOs really paid like bureaucrats? Quarterly Journal of Economics 113:653-92.
23. Hausman, J.A. 1978. Specification tests in econometrics. Econometrica 46:1251-71.
24. Hermalin, B. E., and M. S. Weisbach. 1998. Endogenously chosen boards of directors and their monitoring of the CEO. American Economic Review 88:96-118.
25. Houston, J. F., and C. James. 1995. CEO compensation and bank risk: Is compensation in banking structured to promote risk taking? Journal of Monetary Economics 36:405-31.
26. Hubbard, R.G., and D. Palia. 1995. Executive pay and performance: Evidence from the U.S. banking industry. Journal of Financial Economics 39:105-30.
27. Jensen, M. C. 1986. Agency costs of free cash flow, corporate finance, and takeovers. American Economic Review 76:323-29.
28. _. 1993. The modern industrial revolution, exit, and the failure of internal control systems. Journal of Financial Economics 48:831-80.
29. Jensen, M. C., and K. J. Murphy. 1990. Performance pay and top-management incentives. Journal of Political Economy 98:225-64.
30. Kole, S. R., and K. M. Lehn. 1997. Deregulation, the evolution of corporate governance structure, and survival. American Economic Review 87:421-25.
31. _. 1999. Deregulation and the adaptation of governance structure: the case of the U.S. airline industry. Journal of Financial Economics 52:79-117.
32. Macey, J. R., and M. O'Hara. 2003a. The corporate governance of banks. Federal Reserve Bank of New York Economic Policy Review Apr: 91-107.
33. _. 2003b. Solving the corporate governance problems of banks: A proposal. The Banking Law Journal 120:326-48.
34. Mayers, D., A. Shivdasani, and C. W. Smith, Jr. 1992 Executive compensation in the life insurance industry. Journal of Business 65:51-74.
35. _. 1997. Board composition and corporate control: Evidence from the insurance industry. Journal of Business 70:33-62.
36. Mehran, H. 1995. Executive compensation structure, ownership, and firm performance. Journal of Financial Economics 38:163-84.
37. Mehran, H., and J. Tracy. 2001. The effects of employee stock options on the evolution of compensation in the 1990s. Federal Reserve Bank of New York Economic Policy Review Dec: 17-34.
38. Morgan, A. G., and A. B. Poulsen. 2001. Linking pay to performance - Compensation proposals in the S&P 500. Journal of Financial Economics 62:489-523.
39. Mulherin, J. H., and A. L. Boone. 2000. Comparing acquisitions and divestitures. Journal of Corporate Finance 6:117-39.
40. Perry, T. 1999. Incentive compensation for outside directors and CEO turnover. Working paper, Arizona State University.
41. Rajan, Raghuram G., and Luigi Zingales. 2001. The influence of the financial revolution on the nature of firms. American Economic Review 91:206-12.
42. Report of the NACD Blue Ribbon Commission on director compensation: purposes, principles, and best practices. Washington, D.C.: National Association of Corporate Directors, 1995.
43. Servaes, H., and M. Zenner. 1996. The role of investment banks in acquisitions. Review of Financial Studies 9:787-815.
44. Shivdasani, A. 1993. Board composition, ownership structure, and hostile takeovers. Journal of Accounting and Economics 16:167-98.
45. Smith, C., and W. Watts. 1992. The investment opportunity set, and corporate financing, dividend, and compensation policies. Journal of Financial Economics 32:263-92.
46. Stulz, R.M. 1990. Managerial discretion and optimal financing policies. Journal of Financial Economics 26:3-27.
47. Subrahmanyam, V., N. Rangan, and S. Rosenstein. 1997. The role of outside directors in bank acquisitions. Financial Management 26:23-36.
48. Zingales, L. 2000. In search of new foundations. Journal of Finance 54:1623-53.