Journal of Corporate Finance Vol. 4 No. 3 1998
Executive compensation of large acquirors in the 1980s
Abstract
To examine the role of executive compensation in corporate acquisition decisions, we compare executive compensation of firms undertaking large acquisitions to a control sample of non-acquirors. Before the acquisitions, we find a positive relation between firm size and compensation for executives of acquirors; we do not find such a relation for non-acquirors. This result suggests an ex ante expectation that larger firm size will result in larger managerial remuneration. Ex post, however, large acquisitions have a small positive effect on total compensation. When we separate good from bad acquisitions, we find that good acquisitions increase compensation, whereas bad acquisitions do not have a positive effect on compensation.
- DOI
- 10.1016/s0929-1199(98)00004-2
- Volume
- 4
- Issue
- 3
- Pages
- 209-240
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref