Executive Compensation of Large Acquirors in the 1980s
Author | : Ajay Khorana |
Publisher | : |
Total Pages | : |
Release | : 1999 |
ISBN-10 | : OCLC:1291267588 |
ISBN-13 | : |
Rating | : 4/5 ( Downloads) |
Download or read book Executive Compensation of Large Acquirors in the 1980s written by Ajay Khorana and published by . This book was released on 1999 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: To examine the role of executive compensation in corporate acquisition decisions, we compare the compensation of top executives in two groups of firms: firms undertaking large acquisitions and a control sample of non-acquirors. Before the acquisition, we find a positive relation between firm size and compensation for executives of acquirors. However, we do not find such a relation for non-acquirors. This result suggests an ex ante expectation that larger firm size for the acquirors will result in larger managerial compensation. Ex post, however, the increase in total compensation is not attributable to the size increase resulting from the acquisition. In separating good from bad acqusitions, we find that good acquisitions increase compensation. However, bad acquisitions do not have a material impact on executive compensation.