Date: 06 March 2020, Friday
\nTime: 13:40-14:40
\nPlace: Faculty of Business Administration,
\n\u00dcmit Berkman Seminar Room (MA-330)<\/p>\n
\u201cThe Elephant (or Donkey) Outside the Boardroom:
\nGovernment Political Leniency and Executive Compensation\u201d
\nby
\nB\u00fcnyamin \u00d6nal
\nSabanc\u0131 University<\/p>\n
Abstract: We examine the impact of governments on executive compensation based on their leniency on the left-right political spectrum. We find that left-leaning governments have a significant negative impact on CEO pay relative to their right-leaning counterparts. We further show that left restrains powerful CEOs from extracting rents, and this mitigates its overall negative impact on firm value. However, left also imposes limits on performance- and promotion-based incentives for top executives, and this exacerbates its negative value impact. Our results are robust to a battery of endogeneity corrections and robustness checks. We conclude that politics plays a value-influencing role in executive compensation.
\nKeywords: Executive compensation; Politics; Managerial Power; Efficient Contracting; Firm value
\nJEL Codes: G34, G39<\/p>\n","protected":false},"excerpt":{"rendered":"
Date: 06 March 2020, Friday Time: 13:40-14:40 Place: Faculty of Business Administration, \u00dcmit Berkman Seminar Room (MA-330) \u201cThe Elephant (or Donkey) Outside the Boardroom: Government Political Leniency and Executive Compensation\u201d by B\u00fcnyamin \u00d6nal Sabanc\u0131 University Abstract: We examine the impact of governments on executive compensation based on their leniency on [\u2026] <\/p>\n