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Incitants Financiers Du Dirigeant Et Niveau D'Endettement Optimal

Author

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  • Alexandre Di Giacomo

    (LSMRC - Lille School of Management Research Center - ULR 4112 - SKEMA Business School - Université de Lille)

  • Pascal Alphonse

    (LSMRC - Lille School of Management Research Center - ULR 4112 - SKEMA Business School - Université de Lille)

Abstract

The purpose of this paper is to highlight the link between incentive mix and financing policy. We focus on the conditional effect of pay to performance sensitivity on risk taking behavior. We focus on target debt leverage level determinants using a dynamic adjustment model. We consider US firms to validate our hypothesis on the period 1992-2005. Our data are extracted from Compustat and Execucomp database. The main result of this work is that the efficiency of risk incentive is highly dependent of CEO's performance incentive reaching a given threshold.

Suggested Citation

  • Alexandre Di Giacomo & Pascal Alphonse, 2014. "Incitants Financiers Du Dirigeant Et Niveau D'Endettement Optimal," Post-Print hal-01899182, HAL.
    • Handle: RePEc:hal:journl:hal-01899182
    Note: View the original document on HAL open archive server: https://hal.science/hal-01899182
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    References listed on IDEAS

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