The relationship between compensation committee quality and the voluntary adoption of clawback provisions

Hui Wen Hsu, Liu Ching Tsai, Chaur Shiuh Young, Chia Hui Chen

Research output: Contribution to journalArticle

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.

Original languageEnglish
Pages (from-to)345-355
Number of pages11
JournalInvestment Management and Financial Innovations
Volume15
Issue number4
DOIs
Publication statusPublished - 2018 Jan 1

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Compensation committees
Fair value

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Accounting
  • Finance
  • Economics and Econometrics
  • Strategy and Management

Cite this

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The relationship between compensation committee quality and the voluntary adoption of clawback provisions. / Hsu, Hui Wen; Tsai, Liu Ching; Young, Chaur Shiuh; Chen, Chia Hui.

In: Investment Management and Financial Innovations, Vol. 15, No. 4, 01.01.2018, p. 345-355.

Research output: Contribution to journalArticle

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