Does CEO power affect the association between CEO compensation and tangible assets impairments?
This paper examines the association between CEO compensation and tangible long-lived assets impairment. We find that the level of CEO compensation is negatively associated with the tangible long-lived assets impairment charges. We also document that in firms with CEOs who have more decision-making p...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Journal Article |
| Language: | English |
| Published: |
2022
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10356/160045 |
| _version_ | 1826113827518808064 |
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| author | Lee, Kin-Wai Lee, Cheng-Few Yeo, Gillian Hian Heng |
| author2 | Nanyang Business School |
| author_facet | Nanyang Business School Lee, Kin-Wai Lee, Cheng-Few Yeo, Gillian Hian Heng |
| author_sort | Lee, Kin-Wai |
| collection | NTU |
| description | This paper examines the association between CEO compensation and tangible long-lived assets impairment. We find that the level of CEO compensation is negatively associated with the tangible long-lived assets impairment charges. We also document that in firms with CEOs who have more decision-making power, the negative association between CEO compensation and tangible long-lived assets impairment charges is mitigated. Specifically, the negative association between CEO compensation and tangible long-lived assets impairment charges is less pronounced (1) when CEO chairs the board, (2) when CEO is the founder of the firm, (3) when the CEO is involved in the director selection process, and (4) when overall board independence is low. |
| first_indexed | 2024-10-01T03:29:36Z |
| format | Journal Article |
| id | ntu-10356/160045 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T03:29:36Z |
| publishDate | 2022 |
| record_format | dspace |
| spelling | ntu-10356/1600452023-05-19T07:31:17Z Does CEO power affect the association between CEO compensation and tangible assets impairments? Lee, Kin-Wai Lee, Cheng-Few Yeo, Gillian Hian Heng Nanyang Business School Business::Accounting CEO Compensation Assets Impairment This paper examines the association between CEO compensation and tangible long-lived assets impairment. We find that the level of CEO compensation is negatively associated with the tangible long-lived assets impairment charges. We also document that in firms with CEOs who have more decision-making power, the negative association between CEO compensation and tangible long-lived assets impairment charges is mitigated. Specifically, the negative association between CEO compensation and tangible long-lived assets impairment charges is less pronounced (1) when CEO chairs the board, (2) when CEO is the founder of the firm, (3) when the CEO is involved in the director selection process, and (4) when overall board independence is low. Nanyang Technological University We acknowledge the financial support from Nanyang Technological University’s SUG research Grant. 2022-07-12T02:29:28Z 2022-07-12T02:29:28Z 2021 Journal Article Lee, K., Lee, C. & Yeo, G. H. H. (2021). Does CEO power affect the association between CEO compensation and tangible assets impairments?. Review of Pacific Basin Financial Markets and Policies, 24(1), 2150005-1-2150005-26. https://dx.doi.org/10.1142/S0219091521500053 0219-0915 https://hdl.handle.net/10356/160045 10.1142/S0219091521500053 2-s2.0-85103018907 1 24 2150005-1 2150005-26 en Review of Pacific Basin Financial Markets and Policies © World Scientific Publishing Co. and Center for Pacific Basin Business, Economics and Finance Research. All rights reserved. |
| spellingShingle | Business::Accounting CEO Compensation Assets Impairment Lee, Kin-Wai Lee, Cheng-Few Yeo, Gillian Hian Heng Does CEO power affect the association between CEO compensation and tangible assets impairments? |
| title | Does CEO power affect the association between CEO compensation and tangible assets impairments? |
| title_full | Does CEO power affect the association between CEO compensation and tangible assets impairments? |
| title_fullStr | Does CEO power affect the association between CEO compensation and tangible assets impairments? |
| title_full_unstemmed | Does CEO power affect the association between CEO compensation and tangible assets impairments? |
| title_short | Does CEO power affect the association between CEO compensation and tangible assets impairments? |
| title_sort | does ceo power affect the association between ceo compensation and tangible assets impairments |
| topic | Business::Accounting CEO Compensation Assets Impairment |
| url | https://hdl.handle.net/10356/160045 |
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