Say pays! Shareholder voice and firm performance
Vicente Cuñat,
Mireia Giné and
Maria Guadalupe ()
LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library
Abstract:
This paper estimates the effects of Say-on-Pay (SoP), a policy that increases shareholder "voice" by providing shareholders with a regular vote on executive pay. We apply a regression discontinuity design to the votes on shareholder-sponsored SoP proposals. Adopting SoP leads to large increases in market value (5%) and to improvements in long-term profitability. In contrast, it has limited effects on pay levels and structure. Taken together our results suggest that SoP can be seen as a repeated regular vote of confidence on the CEO and that it serves as a disciplining device.
JEL-codes: G14 G30 G34 G38 J33 L25 (search for similar items in EconPapers)
Date: 2016-08-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)
Published in Review of Finance, 1, August, 2016, 20(5), pp. 1799 - 1834. ISSN: 1572-3097
Downloads: (external link)
http://eprints.lse.ac.uk/63331/ Open access version. (application/pdf)
Related works:
Journal Article: Say Pays! Shareholder Voice and Firm Performance (2016)
Working Paper: Say Pays! Shareholder Voice and Firm Performance (2014)
Working Paper: Say Pays! Shareholder Voice and Firm Performance (2014)
Working Paper: Say pays! Shareholder voice and firm performance (2013)
Working Paper: Say Pays! Shareholder Voice and Firm Performance (2013)
Working Paper: Say Pays! Shareholder Voice and Firm Performance (2013)
Working Paper: Say Pays! Shareholder Voice and Firm Performance (2013)
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