The astonishing collapse of the largest financial institutions managed by repulsively high-paid Wall Street executives led to the Say-on-Pay rules in the Dodd-Frank legislation. However, the shareholders of S&P 500 firms do not seem to exercise their newly granted right as anticipated by the...

This study investigates whether CEO perquisite of borrowing firms plays any significant role, both in terms of price and non-price settings, in financial contracts and reveals that lending banks demand significantly higher return (spread), more collateral, and stricter covenants from firms with...