Bank CEOs are held personally accountable for firms' performance, including the downside risk. Operational risk is largely idiosyncratic and operational risk event announcements signal flaws in banks' internal control systems and ineffective risk management. We examine the impact of operational...

AbstractDivergent views exist about the impact of equity-based compensation on monitoring by Non-Executive Directors (NEDs) Prior studies report conflicting results mainly because of the endogeneity problem, which were not addressed or addressed using ineffective techniques. This study attempts...

Despite claims that CEO compensation contracts are increasingly complex, little is known about the extent to which they are, what drives that complexity, and its implications. We develop a new measure of compensation contract complexity and find that complexity relates to factors capturing firm...

Bank CEOs are held personally accountable for firms' performance, including the downside risk. Operational risk is idiosyncratic and operational risk event announcements signal ineffective risk management. We examine the impact of operational risk announcements on different components of U.S....

We examine how board ethnic diversity impacts executive pay-to-performance sensitivity. Using firm-year observations in Australia for the period 2007-2017, we document that board ethnic diversity leads to higher executive pay-to-performance sensitivity. The finding is robust in controlling for...