CEO contractual protection and managerial short-termism

• Main Authors: CHEN, Xia, CHENG, Qiang, LO, Alvis K., WANG, Xin
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2015
• Subjects: employment agreement; severance pay agreement; managerial short-termism; Accounting; Corporate Finance; Human Resources Management
• Online Access: https://ink.library.smu.edu.sg/soa_research/1378; https://ink.library.smu.edu.sg/context/soa_research/article/2377/viewcontent/CEOContractualProtectionManagerialST_2014.pdf
• Institution: Singapore Management University

How to address managerial short-termism is an important issue for companies, regulators, and researchers. We examine the effect of CEO contractual protection, in the form of employment agreements and severance pay agreements, on managerial short-termism. We find that firms with CEO contractual prote...