Conyon, Martin (1998) Directors' Pay and Turnover: An Application to a Sample of Large UK Firms. Oxford Bulletin of Economics and Statistics, 60 (4). pp. 485-507. ISSN 0305-9049Full text not available from this repository.
This paper examines the operation of the UK managerial labour market. We test the twin agency predictions that directors' pay is positively related to corporate performance and CEO turnover is negatively associated with firm profitability. We find that (i) the panel data econometric evidence reveals a significant and positive correlation between directors' pay, company performance and size, (ii) the CEO turnover model predicts a negative, and significant, association with pre-dated shareholder returns: the data is consistent with the view that CEOs are disciplined by the threat of dismissal, (iii) boardroom governance factors (e.g. proportion of non-executives and board size) are only of some importance in the CEO succession process.
|Journal or Publication Title:||Oxford Bulletin of Economics and Statistics|
|Subjects:||H Social Sciences > HF Commerce > HF5601 Accounting|
|Departments:||Lancaster University Management School > Accounting & Finance|
|Deposited On:||26 Jun 2012 11:42|
|Last Modified:||08 Dec 2016 03:34|
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