Uncertainty in Executive Compensation and Capital Investment: A Panel Study
利用面板数据研究CEO薪酬不确定性对企业投资决策的影响，发现薪酬不确定性高的CEO投资更少，且永久性不确定性的负面影响大于暂时性不确定性。
Atreya Chakraborty is an Assistant Professor at Brandeis University. Mark Kazarosian is an Assistant Professor at Stonehill College. Emery A. Trahan is an Associate Professor at Northeastern University. We investigate whether uncertainty in CEO compensation influences the firm's investment decisions. We use panel data on compensation to estimate CEO income uncertainty and cross-sectional investment data to measure capital investment. Given the prospect of bearing extra risk, a rational agent reacts to minimize the impact of such risk. We provide evidence that CEOs with high earnings uncertainty invest less. We find that the negative impact of permanent earnings uncertainty on firm investment is larger than that of transitory earnings uncertainty. Our results are robust to several alternate specifications and can be helpful in building compensation packages that lead to desired outcomes.