時間: 12/14 (五) 10:30-12:00

地點: 台大管理學院二號館 302 教室

演講人: Prof. Wei-Ling Song,

學校: Department of Finance, Louisiana State University.

講題: Do Higher Paid CEOs Weather The Storm Better? Evidence from the Great Recession

演講摘要:

Abstract

Using the 2008 financial crisis as an exogenous shock, this paper examines whether “excessive” CEO pay – above median industry adjusted CEO pay slice (CPS) developed by Bebchuk et al. (2011) – can be a proxy for CEO ability. We find that high CPS firmsexperienced lower increases in credit default swap spreads and lower declines in firm value (measured by Tobin’s q) during the Great Recession than low CPS firms. These findings are consistent with the CEO ability hypothesis that higher paid CEOs appear to navigate through troubled times better than lower paid CEOs but contradict the notion that CPS proxies only for the CEO rent extracting agency problem.