Wei-Ling Song Hsiangping Tsai Discussant: Hong-Yi Chen

Slides:

Advertisements

Similar presentations

COUNTER-CYCLICAL PROVISIONS, ANAGERIAL DISCRETION AND LOAN GROWTH: THE CASE OF SPAIN by S. Carbó-Valverde and F. Rodríguez-Fernández João A.C. Santos Federal.

Advertisements

Optimal Collective Action Clause Thresholds Andrew G Haldane, Adrian Penalver, Victoria Saporta and Hyun Song Shin.

Corporate Governance: A Review of Current Research Alexander Settles.

Determinants of Asset Backed Security Prices in Crisis Periods William Perraudin & Shi Wu Comments by: Stephen Schaefer London Business School Conference.

The Effect of Asymmetric Information on Dividend Policy Yohanes Kristiawan H

Divestment, Remuneration and Corporate Governance in Mature Firms Michelle Haynes University of Warwick Steve Thompson University of Nottingham Mike Wright.

Information Gathering in Government Bailout Decision: An Experiment Ayung Tseng December 8,

1 Institutions, Financial Accounting Information and Executive Compensation Sun Zheng Li Zeng-quan Liu Feng-wei Liu Feng-wei School of Accountancy Shanghai.

1 Understanding Financial Crises Franklin Allen and Douglas Gale Clarendon Lectures in Finance June 9-11, 2003.

4 th BIENNIAL IMTERNATIONAL CONFERENCE ON BUSINESS, BANKING & FINANCE.

SMEs adaptive behavior in the modest growth environment of : Implications for innovative SME 1 VUZF University October 1, 2013 Sofia, Bulgaria.

11.1PPS t/a Carnegie et al; Accounting: Financial and Organisational Decision Making © 1999 McGraw-Hill Book Co. Aust. ACCOUNTING Financial and Organisational.

Financial Liberalisation In New Zealand The Impact on Savings and Investment Phillip Mellor.

Inside Debt and Bank Performance During the Financial Crisis DNB 2012 Sjoerd van Bekkum.

Copyright  2004 McGraw-Hill Australia Pty Ltd. PPTs t/a Accounting by Jackling et al Prepared by Courtney Clowes 10-1 Chapter 10 Accounting and Financial.

Learning Objectives Explain the purpose and importance of financial analysis. Calculate and use a comprehensive set of measurements to evaluate a company’s.

Certificate for Introduction to Securities & Investment (Cert.ISI) Unit 1  Corporate bonds  Commercial paper  Role of the credit rating agencies  Investment.

1 Financial Crisis and Corporate Cash Holdings: Evidence from East Asian Firms Discussant I-Ju Chen, Yuan Ze University, Taiwan The NTU International Conference.

Determinants of Credit Default Swap Spread: Evidence from the Japanese Credit Derivative Market.

Financial crisis and corporate cash holdings: evidence from East Asian firms Youngjoo Lee (Univ. at Buffalo) and Kyojik “Roy” Song (SKKU)

Solvency Ratios. SO 5 Identify and compute ratios used in analyzing a firm’s liquidity, profitability, and solvency. Ratio Analysis Solvency Ratios Solvency.

Interest Rates Relationship Between Different Interest Rates  Most interest rates of similar duration tend to be highly correlated  Short-term and.

Financial Risk and Unemployment by Eckstein, Setty and Weiss Joseph Zeira Hebrew University of Jerusalem Mishkenot Shaananim 20/6/2014.

Wei-Ling Song E.J. Ourso College of Business Louisiana State University 1 Do Higher Paid CEOs Weather the Storm Better? Evidence from the Great Recession.

Comments on “Does Syndicate Pressure Affect Analysts’ Incentive to Produce Information? Evidence from Recommended Firms’ Securities Class Action Lawsuits”

Credit Spreads and the Severity of Financial Crises Krishnamurthy and Muir Discussion by Robin Greenwood.

Default Rates in the Loan Market for SMEs: Evidence from Slovakia Small business banking and financing: a global perspective Cagliari, 25 May 2007 Christa.

Determinants of Credit Default Swap Spread: Evidence from the Japanese Credit Derivative Market Comments by Carl R. Chen  The authors study the determinants.

Assessing the Probability of Bankruptcy with the Merton Approach Relative to Accounting Variables –Evidence from Taiwan and China Mei-Ying Liu Soochow.

© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license.

The vulnerability of indebted households during the crisis: evidence from the euro area The vulnerability of indebted households during the crisis: evidence.

Tunneling or Propping: Evidence from Connected Transactions in China By Winnie Peng, K.C. John Wei and Zhishu Yang Presenter: Winnie Peng, HKUST NTUICF,

1 Discussion of “Does the stock market see a zero or small positive earnings surprise as a red flag?” Zhihong CHEN Department of Accountancy The City University.

© 2016 Pearson Education, Inc. All rights reserved.9-1 The Mother of All Financial Crises: The Great Depression How did a financial crisis unfold during.

Central Bank of Egypt Financial Risk Management Financial Risk Management.

Money Markets Shuyan Wu Yonsei GSIS Apr

Corporate governance practices and capital structure

Do Higher Paid CEOs Weather the Storm Better

Money and Banking Lecture 16.

Vijaya Bhaskar Marisetty

(includes a few oral comments from presentation)

Women in the boardroom and their impact on default risk

Ratio Analysis Past Questions

Slides prepared by Kaye Watson

Share repurchases and firm performance: new evidence on the agency costs of free cash flow Nohel and Tarhan (1998, JFE)

Underwriter reputation and the quality of certification Evidence from high-yield bonds Accounting English 姓名：王海婷学号：亮亮图文旗舰店

Journal of Economics and Finance(2017) 41:311–329

Banking and the Management of Financial Institutions

Banking and the Management of Financial Institutions

Banking and the Management of Financial Institutions

Saule Dyussembina, KIMEP University

Bonds and interest rates

Credit Value Adjustment (CVA) Introduction Alex Yang FinPricing

BMC Health Service Research 2015 By Gang Nathan Dong PERFORMING WELL IN FINANCIAL MANAGMGMENG AND QUALITY OF CARE.

Liquidity Analysis FINA321 Abdullah Al Shukaili

Qian Wang, T.J. Wong, Lijun Xia Presented by Carl Chen

Financial Institutions and Markets

Corporate Governance: A Review of Current Research

Appendix: Financial Ratios

Capital structure, executive compensation, and investment efficiency

Roberts and Sufi (2009) Here the concern is financial policies.

Paper prepared for the World Bank conference on Access to Finance

Chapter 13: Executive and Managerial Compensation

Management Team Incentive: Dispersion and Firm Performance

The Effect of Institution Ownership on Payout Policy

Private Equity Firms’ Reputational Concerns and the Costs

Financial development and innovation: Cross-country evidence

Banking and the Management of Financial Institutions

Research Project Unrest in Ferguson.

Banking and the Management of Financial Institutions

Presentation transcript:

Wei-Ling Song Hsiangping Tsai Discussant: Hong-Yi Chen Do Higher Paid CEOs Weather The Storm Better? Evidence from the Great Recession Wei-Ling Song Hsiangping Tsai Discussant: Hong-Yi Chen

Summary of this paper CEO compensation: Pay incentive/ agency problem/ endogeniety Murphy (1985), Sloan (1993), Rajgopal and Shevlin (2002), Brian and Liebman (1998), Simi and Rajgopal (2008), Bergman and Jenter (2007), Oyer and Schaefer (2005), Bebchuk et al. (2011), Wei and Yermack (2011), …. Research question High CEO paid may indicate good CEO ability and higher agency problem. Is excessive CEO pay is driven by unobserved CEO ability?

Summary of this paper (cont.) Excessive CEO pay: CEO pay slice (CPS) Bebchuk et al. (2011) Creditors value: CDS spread (or default risk) Norden and Webber (2004), Hull and Predescu (2004), Blanco et al. (2005), etc. Exogenous event: 2008 financial crisis (Lehman crisis) Findings High CEO pay slice (CPS) firms experienced lower increases in CDS spread and lower declines in firm value during 2008 financial crisis. Support CEO ability hypothesis.

Suggestions -1 The liquidity of CDS market during the crisis. The difference of CDS liquidity before and after the crisis. Is the CDS market is rational (or efficient) during the crisis?

Suggestions -2 What did the CEO do at the date of crisis? If the CEO did something and made CDS spread not increase much, the work can be found for further studies. If the CEO did nothing, CDS spread was changed by other factors rather than CEO ability.

Suggestions -3 Others May apply to other crises. May use other compensation variables other than CPS. The significance of CPS is marginal (1.7 – 1.9 of t-stats). Introduction and literature review can be reduced.

Conclusion Interesting paper which uses an exogenous event to separate effects of CEO ability and CEO agency problem from CEO payment. gives credits for CEO ability hypothesis. I like this paper.