Terrorist attacks and CEO compensation: UK evidence

Wenxuan Huang, Weidong Xu, Xin Gao, Donghui Li and Wentao Fu

Research in International Business and Finance, 2023, vol. 64, issue C

Abstract: This paper shows that both CEO compensation and rank-and-file employee compensation rise after terrorist attacks by employing a sample of 2558 firms in the UK from 1999 to 2018. The structure of CEO compensation growth differs in accordance with different cutoffs. Further analyses show that media coverage and CEO bargaining power accentuate the effect of terrorist attacks on CEO compensation and rank-and-file employee compensation, and the impact of media is mainly based on the information dissemination function. Our results remain valid after taking into account various robustness tests and endogeneity concerns.

Keywords: Terrorist attack; CEO compensation; Rank-and-file employee compensation; Media coverage; CEO bargaining power (search for similar items in EconPapers)
JEL-codes: G14 G30 G34 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:64:y:2023:i:c:s0275531922002471

DOI: 10.1016/j.ribaf.2022.101861

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