The interaction effects of CEO power, social connections and incentive compensation on firm value

• Main Authors: CATON, Gary, GOH, Choo Yong, Jeremy, KE, Jinghao, LINN, Scott C.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2015
• Subjects: CEO power; social connections; corporate governance; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/5214; https://ink.library.smu.edu.sg/context/lkcsb_research/article/6213/viewcontent/SSRN_id2594993.pdf
• Institution: Singapore Management University

We study the relation between company value and the interplay between CEO power, CEO equity incentives and the friendliness of the board of directors. Following Bebchuk, Cremers and Peyer (2011), we measure CEO power as the proportion paid to the CEO of the total compensation paid to the top five ex...