Corporate spinoffs and executive compensation
Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review
Author(s)
Related Research Unit(s)
Detail(s)
Original language | English |
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Article number | 23 |
Journal / Publication | Frontiers of Business Research in China |
Volume | 12 |
Issue number | 1 |
Online published | 11 Dec 2018 |
Publication status | Online published - 11 Dec 2018 |
Link(s)
DOI | DOI |
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Attachment(s) | Documents
Publisher's Copyright Statement
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Link to Scopus | https://www.scopus.com/record/display.uri?eid=2-s2.0-85058808090&origin=recordpage |
Permanent Link | https://scholars.cityu.edu.hk/en/publications/publication(aef70d94-23d8-49db-a202-8c2d893a1796).html |
Abstract
This paper investigates the impact of corporate spinoffs on executive compensation. We find no significant association between executive compensation and stock returns prior to spinoffs, but a significant positive association between the two afterwards. We also find evidence that corporate governance generally improves after the spinoff. In addition, the positive association between executive compensation and stock returns is more pronounced for firms with greater improvements in their corporate governance. Overall, our findings support the notion that spinoffs create value by reducing agency costs.
Research Area(s)
- CEO compensation, Corporate governance, Spinoffs
Citation Format(s)
Corporate spinoffs and executive compensation. / Law, Justin; Yu, Wayne.
In: Frontiers of Business Research in China, Vol. 12, No. 1, 23, 11.12.2018.
In: Frontiers of Business Research in China, Vol. 12, No. 1, 23, 11.12.2018.
Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review
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