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dc.contributor.advisorRoberts, Helen
dc.contributor.authorLynch, Xavier Philip
dc.date.available2015-05-12T03:02:32Z
dc.date.copyright2015
dc.identifier.citationLynch, X. P. (2015). CEO Power and Rigged Compensation in New Zealand (Thesis, Master of Business). University of Otago. Retrieved from http://hdl.handle.net/10523/5664en
dc.identifier.urihttp://hdl.handle.net/10523/5664
dc.description.abstractThis thesis examines whether, or not, powerful Chief Executive Officers (CEOs) in New Zealand are able to rig their own pay. Using a sample consisting of all eligible firms listed on the NZX from 1997 to 2012. I investigate three hypotheses with the goal of understanding the dynamics of the relationship between CEO compensation and power in the remuneration environment of New Zealand. First, I discuss the motivation for this thesis and develop the primary research question. Second, I review the existing literature on Agency Theory, Corporate Governance, and Human Capital and Ownership Determinants. Third, I develop a lagged fixed effects specification and an Auto Regressive (AR) specification to test three hypotheses. After performing the regressions I find that increased CEO compensation is positively associated with increased CEO power. Furthermore, I find that CEOs are able to extract excessive levels of compensation from the board. Rigging is more prevalent in firms with weak governance practices and in firms where institutional shareholdings are low. A CEO who has a seat on the board of directors, or when the total number of directors exceeds the median size, has the ability to rig their pay.
dc.language.isoen
dc.publisherUniversity of Otago
dc.rightsAll items in OUR Archive are provided for private study and research purposes and are protected by copyright with all rights reserved unless otherwise indicated.
dc.subjectRigging
dc.subjectCEO Power
dc.subjectCEO Compensation
dc.subjectCEO Duality
dc.subjectCEO on Board
dc.subjectInsiders on Board
dc.subjectBoard Size
dc.subjectRemuneration Committee
dc.subjectHuman Capital and Ownership
dc.subjectFirm Size
dc.subjectCEO Tenure
dc.subjectGovernance Index
dc.subjectInstitutional Ownership
dc.titleCEO Power and Rigged Compensation in New Zealand
dc.typeThesis
dc.date.updated2015-05-12T02:28:15Z
dc.language.rfc3066en
thesis.degree.disciplineAccountancy and Finance
thesis.degree.nameMaster of Business
thesis.degree.grantorUniversity of Otago
thesis.degree.levelMasters
otago.interloanno
otago.openaccessAbstract Only
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