@article{10272/27673,
year = {2022},
url = {https://hdl.handle.net/10272/27673},
abstract = {This paper is focused on the effect of firms’ financial performance in the compensation of CEOs of Eurostoxx listed hotel firms. We analyze CEO cash-, equity-, and total-compensation using as proxies of financial perfor- mance both accounting-based and market-based measures, where both return and risk are considered. Market- based financial risk measure enables us to delve into the relationship between CEO compensation policies and lagged firms’ systematic and idiosyncratic risk components computed by using a well-known asset-pricing factorial model. Results show a non-significant linear relationship between CEO compensation policies and stock return in the Eurostoxx hotel firms even when we control for market-based risk. However, results support a negative and significant relationship between lagged financial risk and CEO equity compensation that is more intensively related with the firms’ idiosyncratic risk component. Moreover, we show evidence of a non-linear effect of financial return on CEO cash compensation that is idiosyncratic-risk-level dependent.},
organization = {MICINNAEI PID2020–114563GB-I00},
publisher = {Elsevier},
keywords = {Accounting-based performance},
keywords = {Asset pricing factorial models},
keywords = {CEO compensation components},
keywords = {Corporate governance mechanisms},
keywords = {Idiosyncratic risk},
keywords = {Market-based performance},
keywords = {Systematic Risk},
title = {The role of financial performance of Eurostoxx listed hotel companies in determining CEO compensation},
doi = {10.1016/j.ijhm.2022.103242},
author = {Fullana, Olga and Priego de la Cruz, Alba María and Toscano Pardo, David},
}