Prior research has investigated determinants of CEO compensation. However, that research has been primarily limited to large firms. This study investigates the impact of CEO influence over the board of directors on CEO pay for both large and small firms. Additionally, other determinants of CEO pay for both large and small firms are examined. Results suggest that CEO influence over the board significantly affects CEO pay for large firms. However, we do not find the same evidence for small firms. Firm size is the prinmary factor of CEO pay for small firms. Evidence in this study suggests that CEO pay of large firms is mostly a function of CEO influence over the board, firm size and firm performance.
<p class="MsoNormal" style="text-align: justify; margin: 0in 37.8pt 0pt 0.5in; mso-pagination: widow-orphan; tab-stops: -4.5pt .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in;"><span style="font-family: Batang; font-size: x-small;">This study examines the impact of managers' incentives and corporate diversification on the returns to shareholders of acquiring firms in acquisition activities. Managers' incentives are measured by creating an incentive ratio (IR). The IR is constructed by dividing the market value of the equity holdings of the three managers with the largest equity shareholding within the firm by their annual compensation. We hypothesize that managers with a high IR are more likely to undertake acquisitions that benefit the shareholders of the acquiring firm than are managers with a low IR. We further hypothesize that the acquisition of a firm that is a focused acquisition (i.e., same industry) will produce greater returns to the acquiring firm's shareholders than will diversified acquisitions.<span style="mso-spacerun: yes;"> </span>Results indicate significant positive returns to acquiring firms whose managers have high IRs. While diversified acquisitions produce insignificant negative stock returns, focused acquisitions, on average, generate significant positive stock returns for acquiring firms. Results also suggest that managers with a low IR consistently undertake more diversified acquisitions than focused acquisitions, that the group with the combination of high IRs and focused acquisitions produces the highest returns among four groups, and that the group with the opposite combination produces the lowest returns.</span></p>
The purpose of this research is to investigate factors affecting the acceptance of outside investment in a small city in the Midwest area in the United States. These factors include research and development, education, tax breaks, cultural diversity and local government support. A significant amount of research has been conducted on FDI in developing counties. Yet, little research focuses on determinates of FDI locations in developed countries and how the community members feel about FDI in general. An online survey was conducted in a small city in the Midwest. Multiple regression and ANOVA models were developed. The multiple regression models showed statistical significance, in which factors such as research and development and education proved to be statically significant.
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