IDEAS home Printed from https://ideas.repec.org/a/wsi/rpbfmp/v24y2021i01ns0219091521500053.html
   My bibliography  Save this article

Does CEO Power Affect the Association Between CEO Compensation and Tangible Assets Impairments?

Author

Listed:
  • Kin-Wai Lee

    (Nanyang Business School, Nanyang Technological University Singapore, 50 Nanyang Avenue, Singapore 639798, Singapore)

  • Cheng-Few Lee

    (Rutgers University, Room 5188, 100 Rockefeller Road Piscataway, NJ 08854, United States of America)

  • Gillian Hian-Heng Yeo

    (Nanyang Business School, Nanyang Technological University Singapore, 50 Nanyang Avenue, Singapore 639798, Singapore)

Abstract

This paper examines the association between CEO compensation and tangible long-lived assets impairment. We find that the level of CEO compensation is negatively associated with the tangible long-lived assets impairment charges. We also document that in firms with CEOs who have more decision-making power, the negative association between CEO compensation and tangible long-lived assets impairment charges is mitigated. Specifically, the negative association between CEO compensation and tangible long-lived assets impairment charges is less pronounced (1) when CEO chairs the board, (2) when CEO is the founder of the firm, (3) when the CEO is involved in the director selection process, and (4) when overall board independence is low.

Suggested Citation

  • Kin-Wai Lee & Cheng-Few Lee & Gillian Hian-Heng Yeo, 2021. "Does CEO Power Affect the Association Between CEO Compensation and Tangible Assets Impairments?," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 24(01), pages 1-26, March.
    • Handle: RePEc:wsi:rpbfmp:v:24:y:2021:i:01:n:s0219091521500053
    DOI: 10.1142/S0219091521500053
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S0219091521500053
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S0219091521500053?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:rpbfmp:v:24:y:2021:i:01:n:s0219091521500053. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/rpbfmp/rpbfmp.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.