The role of financial performance of Eurostoxx listed hotel companies in determining CEO compensation

This paper is focused on the effect of firms’ financial performance in the compensation of CEOs of Eurostoxx listed hotel firms. We analyze CEO cash-, equity-, and total-compensation using as proxies of financial perfor- mance both accounting-based and market-based measures, where both return and ri...

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Detalles Bibliográficos
Autores: Fullana, Olga, Priego de la Cruz, Alba María, Toscano Pardo, David
Tipo de recurso: artículo
Fecha de publicación:2022
País:España
Institución:Universidad de Huelva (UHU)
Repositorio:Arias Montano. Repositorio Institucional de la Universidad de Huelva
Idioma:inglés
OAI Identifier:oai:ariasmontano.uhu.es:10272/27673
Acceso en línea:https://hdl.handle.net/10272/27673
Access Level:acceso abierto
Palabra clave:Accounting-based performance
Asset pricing factorial models
CEO compensation components
Corporate governance mechanisms
Idiosyncratic risk
Market-based performance
Systematic Risk
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spelling The role of financial performance of Eurostoxx listed hotel companies in determining CEO compensationFullana, OlgaPriego de la Cruz, Alba MaríaToscano Pardo, DavidAccounting-based performanceAsset pricing factorial modelsCEO compensation componentsCorporate governance mechanismsIdiosyncratic riskMarket-based performanceSystematic RiskThis paper is focused on the effect of firms’ financial performance in the compensation of CEOs of Eurostoxx listed hotel firms. We analyze CEO cash-, equity-, and total-compensation using as proxies of financial perfor- mance both accounting-based and market-based measures, where both return and risk are considered. Market- based financial risk measure enables us to delve into the relationship between CEO compensation policies and lagged firms’ systematic and idiosyncratic risk components computed by using a well-known asset-pricing factorial model. Results show a non-significant linear relationship between CEO compensation policies and stock return in the Eurostoxx hotel firms even when we control for market-based risk. However, results support a negative and significant relationship between lagged financial risk and CEO equity compensation that is more intensively related with the firms’ idiosyncratic risk component. Moreover, we show evidence of a non-linear effect of financial return on CEO cash compensation that is idiosyncratic-risk-level dependent.Elsevier20222022-01-0120222022-01-01journal articlehttp://purl.org/coar/resource_type/c_6501AMhttp://purl.org/coar/version/c_ab4af688f83e57aainfo:eu-repo/semantics/articleapplication/pdfhttps://hdl.handle.net/10272/27673reponame:Arias Montano. Repositorio Institucional de la Universidad de Huelvainstname:Universidad de Huelva (UHU)Inglésengopen accesshttp://purl.org/coar/access_right/c_abf2Attribution-NonCommercial-NoDerivatives 4.0 Internationalhttp://creativecommons.org/licenses/by-nc-nd/4.0/info:eu-repo/semantics/openAccessoai:ariasmontano.uhu.es:10272/276732026-06-02T14:58:11Z
dc.title.none.fl_str_mv The role of financial performance of Eurostoxx listed hotel companies in determining CEO compensation
title The role of financial performance of Eurostoxx listed hotel companies in determining CEO compensation
spellingShingle The role of financial performance of Eurostoxx listed hotel companies in determining CEO compensation
Fullana, Olga
Accounting-based performance
Asset pricing factorial models
CEO compensation components
Corporate governance mechanisms
Idiosyncratic risk
Market-based performance
Systematic Risk
title_short The role of financial performance of Eurostoxx listed hotel companies in determining CEO compensation
title_full The role of financial performance of Eurostoxx listed hotel companies in determining CEO compensation
title_fullStr The role of financial performance of Eurostoxx listed hotel companies in determining CEO compensation
title_full_unstemmed The role of financial performance of Eurostoxx listed hotel companies in determining CEO compensation
title_sort The role of financial performance of Eurostoxx listed hotel companies in determining CEO compensation
dc.creator.none.fl_str_mv Fullana, Olga
Priego de la Cruz, Alba María
Toscano Pardo, David
author Fullana, Olga
author_facet Fullana, Olga
Priego de la Cruz, Alba María
Toscano Pardo, David
author_role author
author2 Priego de la Cruz, Alba María
Toscano Pardo, David
author2_role author
author
dc.contributor.none.fl_str_mv
dc.subject.none.fl_str_mv Accounting-based performance
Asset pricing factorial models
CEO compensation components
Corporate governance mechanisms
Idiosyncratic risk
Market-based performance
Systematic Risk
topic Accounting-based performance
Asset pricing factorial models
CEO compensation components
Corporate governance mechanisms
Idiosyncratic risk
Market-based performance
Systematic Risk
description This paper is focused on the effect of firms’ financial performance in the compensation of CEOs of Eurostoxx listed hotel firms. We analyze CEO cash-, equity-, and total-compensation using as proxies of financial perfor- mance both accounting-based and market-based measures, where both return and risk are considered. Market- based financial risk measure enables us to delve into the relationship between CEO compensation policies and lagged firms’ systematic and idiosyncratic risk components computed by using a well-known asset-pricing factorial model. Results show a non-significant linear relationship between CEO compensation policies and stock return in the Eurostoxx hotel firms even when we control for market-based risk. However, results support a negative and significant relationship between lagged financial risk and CEO equity compensation that is more intensively related with the firms’ idiosyncratic risk component. Moreover, we show evidence of a non-linear effect of financial return on CEO cash compensation that is idiosyncratic-risk-level dependent.
publishDate 2022
dc.date.none.fl_str_mv 2022
2022-01-01
2022
2022-01-01
dc.type.none.fl_str_mv journal article
http://purl.org/coar/resource_type/c_6501
AM
http://purl.org/coar/version/c_ab4af688f83e57aa
dc.type.openaire.fl_str_mv info:eu-repo/semantics/article
format article
dc.identifier.none.fl_str_mv https://hdl.handle.net/10272/27673
url https://hdl.handle.net/10272/27673
dc.language.none.fl_str_mv Inglés
eng
language_invalid_str_mv Inglés
language eng
dc.rights.none.fl_str_mv open access
http://purl.org/coar/access_right/c_abf2
Attribution-NonCommercial-NoDerivatives 4.0 International
http://creativecommons.org/licenses/by-nc-nd/4.0/
dc.rights.openaire.fl_str_mv info:eu-repo/semantics/openAccess
rights_invalid_str_mv open access
http://purl.org/coar/access_right/c_abf2
Attribution-NonCommercial-NoDerivatives 4.0 International
http://creativecommons.org/licenses/by-nc-nd/4.0/
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Elsevier
publisher.none.fl_str_mv Elsevier
dc.source.none.fl_str_mv reponame:Arias Montano. Repositorio Institucional de la Universidad de Huelva
instname:Universidad de Huelva (UHU)
instname_str Universidad de Huelva (UHU)
reponame_str Arias Montano. Repositorio Institucional de la Universidad de Huelva
collection Arias Montano. Repositorio Institucional de la Universidad de Huelva
repository.name.fl_str_mv
repository.mail.fl_str_mv
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