The relationship between compensation committee quality and the voluntary adoption of clawback provisions
The relationship between compensation committee quality and the voluntary adoption of clawback provisions
Author(s): Hui-Wen Hsu, Liu-Ching Tsai, Chaur-Shiuh Young, Chia-Hui ChenSubject(s): Economy, Business Economy / Management
Published by: ТОВ “Консалтингово-видавнича компанія “Ділові перспективи”
Keywords: compensation committee quality; clawback provisions; Level 3 fair values;
Summary/Abstract: This paper examines how compensation committee quality is related to the voluntary adoption of clawback provisions. Because fair value information has some reliability issues, this paper further examines whether the amount of Level 3 fair values affect the relationship between compensation committee quality and the voluntary adoption of clawback provisions. Using a sample drawn from the U.S. firms from 2008 to 2015, the results show that the compensation committee quality is positively related to the voluntary adoption of clawback provisions. Additionally, the positive relationship between compensation committee quality and the voluntary adoption of clawback provisions is more pronounced for firms with higher Level 3 fair values.
Journal: Investment Management and Financial Innovations
- Issue Year: 15/2018
- Issue No: 4
- Page Range: 345-355
- Page Count: 11
- Language: English
