Time Trend and the Determinants of Bank CEO’s Compensation

• Main Authors: Man-Ting Fu, 傅曼婷
• Other Authors: I-Ju Chen
• Format: Others
• Language: en_US
• Online Access: http://ndltd.ncl.edu.tw/handle/ypw66k

碩士 === 元智大學 === 財務金融暨會計碩士班(財務金融學程) === 103 === Our study discusses the bank’s CEO compensation and find out what are the determinants influences the CEO compensation in the period from 1994 to 2012. We provide bank performance, CEO characteristics and bank governance hypotheses to exam the determinants of compensation. We use the pooled OLS method and fixed effect method to examine our hypotheses. The empirical results show that bank performance, CEO characteristics, and bank governance are all important determinants of basic compensation and total compensation. Our study result also shows that no matter we separate the S&;P and non-S&;P or not, the determinants of bank CEO compensation are almost consistent with the predictions of our hypotheses. We further do the robustness check for our endogeneity problem. We choose bank capital, log of asset, tier 1 ratio and lagged board size as our instrument variables to run the 2SLS regression, and do the endogeneity test. Also, we reexamine the bank performance hypothesis and change the variable of managerial ability to more robust our study.