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Say-on-Pay: an empirical investigation of voting likelihood and voting behavior in German Prime Standard companies

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  • Marc Eulerich
  • Artur Kalinichenko
  • Jochen Theis

Abstract

The following article investigates the usage of non-binding Say-on-Pay (SOP) voting in German Prime Standard companies for the general meeting seasons 2010–2013. Our overall sample contains 290 companies. We find that the number of companies which conduct a vote and the relative approval rate among these companies continuously decrease. We examine the influence of company characteristics and performance measures on a SOP voting for the considered companies, and compare the results to findings of prior empirical studies. The factors determining the SOP voting likelihood are identified through a quantitative analysis. Using a logistic regression, our study shows that the likelihood for the occurrence of a vote increases with company size. In addition, we also identify potential multi-periodic patterns in SOP votes indicating that initial voting cycles might have been set by companies exceeding the 4 year span of our study. Copyright Springer-Verlag Berlin Heidelberg 2014

Suggested Citation

  • Marc Eulerich & Artur Kalinichenko & Jochen Theis, 2014. "Say-on-Pay: an empirical investigation of voting likelihood and voting behavior in German Prime Standard companies," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 25(2), pages 119-133, October.
    • Handle: RePEc:spr:jmgtco:v:25:y:2014:i:2:p:119-133
    DOI: 10.1007/s00187-014-0192-8
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    References listed on IDEAS

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    1. Rapp, Marc Steffen & Wolff, Michael, 2010. "Determinanten der Vorstandsvergütung: Eine empirische Untersuchung der deutschen Prime-Standard-Unternehmen," CEFS Working Paper Series 2010-07, Technische Universität München (TUM), Center for Entrepreneurial and Financial Studies (CEFS).
    2. Alexander WAGNER & Christoph WENK, 2011. "Are Shareholders Stupid? On The Surprising Impact of Binding Say-On-Pay On Stock Prices," Swiss Finance Institute Research Paper Series 11-12, Swiss Finance Institute.
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    Cited by:

    1. Jörn Obermann, 2020. "Let’s talk about money! Assessing the link between firm performance and voluntary Say-on-Pay votes," Journal of Business Economics, Springer, vol. 90(1), pages 109-135, February.

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