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The relation between changes in CEO compensation and firm performance: A Japanese/American comparison

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  • Mitsudome, Toshiaki
  • Weintrop, Joseph
  • Hwang, Lee-Seok

Abstract

In this paper we compare the relations between the changes in the personal wealth of CEOs and firm performance among Japanese and American companies. Using a personal income measure imputed from annual personal income tax amounts for Japanese executives, we show that Japanese and US CEOs are rewarded for short-term changes in operating income and changes on shareholder wealth, and that the associations are similar for both groups. J. Japanese Int. Economies 22 (4) (2008) 605-619.

Suggested Citation

  • Mitsudome, Toshiaki & Weintrop, Joseph & Hwang, Lee-Seok, 2008. "The relation between changes in CEO compensation and firm performance: A Japanese/American comparison," Journal of the Japanese and International Economies, Elsevier, vol. 22(4), pages 605-619, December.
    • Handle: RePEc:eee:jjieco:v:22:y:2008:i:4:p:605-619
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    Cited by:

    1. Min, Byung-Seong, 2013. "Evaluation of board reforms: An examination of the appointment of outside directors," Journal of the Japanese and International Economies, Elsevier, vol. 29(C), pages 21-43.
    2. Takuya Iwasaki & Shota Otomasa & Atsushi Shiiba & Akinobu Shuto, 2012. "The role of accounting conservatism in executive compensation contracts (Forthcoming in Journal of Business Finance and Accounting)," CARF F-Series CARF-F-370, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo, revised Jul 2018.
    3. Matousek, Roman & Tzeremes, Nickolaos G., 2016. "CEO compensation and bank efficiency: An application of conditional nonparametric frontiers," European Journal of Operational Research, Elsevier, vol. 251(1), pages 264-273.
    4. Takuya Iwasaki & Shota Otomasa & Atsushi Shiiba & Akinobu Shuto, 2012. "Excess Executive Compensation and the Demand for Accounting Conservatism," Discussion Paper Series DP2012-08, Research Institute for Economics & Business Administration, Kobe University.

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