Executive compensation and competition in the banking and financial sectors

Journal of Banking and Finance

Volumn 33, Issue 3, 2009, Pages 495-504

  Cuñat, Vicente ^a   Guadalupe, Maria ^b  

^a LONDON SCHOOL OF ECONOMICS   (United Kingdom)

^b Och Spine at New York Presbyterian Hospitals   (United States)

Author keywords

Deregulation; Executive compensation; Incentives; Performance related pay; Product market competition

Indexed keywords

EID: 58149154694     PISSN: 03784266     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jbankfin.2008.09.003     Document Type: Article

References (31)

1. Aggarwal R.K., and Samwick A.A. Executive compensation, strategic competition, and relative performance evaluation: Theory and evidence. Journal of Finance 54 (1999) 1999-2043
2. Bebchuk, L.A., Fried, J.M., Walker, D.I., 2002. Managerial power and rent extraction in the design of executive compensation. Harvard Law School DP 366.
3. Burns N., and Kedia S. Executive option exercises and financial misreporting. Journal of Banking and Finance 32 (2008) 845-857
4. Carow K.A., and Heron R.A. Capital market reactions to the passage of the financial services modernization act of 1999. The Quarterly Review of Economics and Finance 42 (2002) 465-485
5. Chen C.R., Steiner T.L., and Whyte A.M. Does stock option-based executive compensation induce risk-taking? An analysis of the banking industry. Journal of Banking and Finance 30 (2006) 915-945
6. Crawford A.J., Ezell J.R., and Miles J.R. Bank CEO pay-performance relations and the effects of deregulation. The Journal of Business 68 (1995) 231-256
7. Cuñat V., and Guadalupe M. How does competition shape incentive contracts?. Journal of the European Economic Association 3 (2005) 1058-1082
8. Cuñat, V., Guadalupe, M., 2006. Globalization and the provision of incentives inside the firm. CEPR discussion paper 5950.
9. De Young R., Hasan I., and Kirchoff B. The impact of out-of-state entry on the cost efficiency of local commercial banks. Journal of Economics and Business 50 (1998) 191-203
10. Dick A.A. Nationwide branching and its impact on market structure, quality and bank performance. The Journal of Business 79 (2006) 567-592
11. Hall B.J., and Liebman J.B. Are CEOs really paid like bureaucrats?. Quarterly Journal of Economics 113 (1998) 653-691
12. Hart O. The market mechanism as an incentive scheme. Bell Journal of Economics 74 (1983) 366-682
13. Hermalin B.E. The effects of competition on executive behaviour. The RAND Journal of Economics 23 (1992) 350-365
14. Himmelberg C.P., and Hubbard R.G. Incentive Pay and the Market for CEOs: An Analysis of Pay-for-Performance Sensitivity. Mimeo (2000), Columbia University
15. Hubbard G.R., and Palia D. Executive pay and performance: Evidence from the US banking industry. Journal of Financial Economics 38 (1995) 105-130
16. Jayaratne J., and Strahan P.E. The finance-growth nexus: Evidence from bank branch deregulation. Quarterly Journal of Economics 111 (1996) 639-670
17. Jayaratne J., and Strahan P.E. Entry restrictions, industry evolution, and dynamic efficiency: Evidence from commercial banking. The Journal of Law and Economics 41 (1998) 239-273
18. Joskow P.L., Rose N.L., and Wolfram C.D. Political constraints on executive compensation: Evidence from the electric utility industry. The RAND Journal of Economics 27 (1996) 165-182
19. Kedia S. Estimating product market competition: Methodology and application. Journal of Banking and Finance 30 (2006) 875-894
20. Murphy K.J. Incentives, learning, and compensation: A theoretical and empirical investigation of managerial labor markets. Rand Journal of Economics 17 (1986) 59-76
21. Murphy K.J. Executive compensation. Handbook of Labor Economics B vol. 3 (1999), North-Holland, Amsterdam 2485-2563
22. Nichols M.W., and Hendrickson J. Profit differential between Canadian and US commercial banks: The role of regulation. Journal of Economic History 57 (1997) 674-696
23. Palmon O., Bar-Yosef S., Chen R., and Venezia I. Optimal strike prices of stock options for effort-averse executives. Journal of Banking and Finance 32 (2008) 229-239
24. Peng L., and Roell A. Manipulation and equity-based compensation. American Economic Review 98 (2008) 285-290
25. Raith M. Competition, risk and managerial incentives. American Economic Review 93 (2003) 1425-1436
26. Santomero A.M. The causes and effects of financial modernization. Business Review Federal Reserve Bank of Philadelphia Q04 (2001) 1-4
27. Scharfstein D. Product-market competition and managerial slack. The RAND Journal of Economics 19 (1988) 147-155
28. Schmidt K.M. Managerial incentives and product market competition. Review of Economic Studies 64 (1997) 191-213
29. Stiroh K.J., and Strahan P.E. Competitive dynamics of deregulation: Evidence from US banking. Journal of Money, Credit, and Banking 35 (2003) 801-828
30. Sutton J. Sunk Costs and Market Structure (1991), MIT Press, Cambridge
31. Yermack D. Do corporations award CEO stock options effectively?. Journal of Financial Economics 39 (1995) 237-269