Search results

1 – 4 of 4
To view the access options for this content please click here
Article
Publication date: 13 February 2020

Rafiqul Bhuyan, Deanne Butchey, Jerry Haar and Bakhtear Talukdar

We investigate the relationship between chief executive officer (CEO) compensation and a firm's financial performance in the insurance industry to determine CEO pay…

Abstract

Purpose

We investigate the relationship between chief executive officer (CEO) compensation and a firm's financial performance in the insurance industry to determine CEO pay policies that are more effective in promoting specific financial corporate goals.

Design/methodology/approach

Considering different components of executive pay, we investigate the latter’s relationship with the corporate performance of the insurance industry using the generalized method of moments (GMM) model developed for dynamic panel estimation. Our data encompasses the periods before and after the 2008 financial crisis.

Findings

We observe that after the crisis the insurance industry experienced a major change in executives’ compensation packages. While CEOs’ compensation was primarily based on bonuses pre-crisis, the average size of the bonus was reduced to one-third of the level, stock awards and nonequity incentives were doubled and option awards increased almost 70 percent in the post-crisis period. It is also evident that the work experience of CEOs and the firm's financial performance play a significant role in determining CEO compensation. As the CEO becomes more experienced, stock awards and option awards replace cash bonus.

Originality/value

The paper finds supporting evidence for the agency-related problem in the insurance industry and the convergence of interest hypothesis, suggesting that a firm's market valuation rises as its managers own an increasingly large portion of the firm. To align the interest of owners with that of management, managers should be converted into owners via stock ownership. The paper addresses a topical issue regarding pay and performance and the effect of the financial crisis in the insurance industry.

Details

Managerial Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0307-4358

Keywords

To view the access options for this content please click here
Article
Publication date: 23 February 2021

Marcelline Fusilier, Rafiqul Bhuyan, John Russell, Shan Lin and Shuai Yang

Student approaches to studying were explored in business courses with samples in China, Kuwait and the USA. Information on approaches to studying is critical as delivery…

Abstract

Purpose

Student approaches to studying were explored in business courses with samples in China, Kuwait and the USA. Information on approaches to studying is critical as delivery and content of educational practices are increasingly adapted to different world regions.

Design/methodology/approach

The Revised Approaches to Studying Inventory (RASI) was administered to address the extent to which students focused studying on deep learning of concepts, surface learning/memorization of material or strategic maximization of grades.

Findings

Results suggested (1) acceptable reliability for the RASI scales, (2) higher mean scores on deep, surface and strategic approaches for the Kuwait versus the China or USA samples, and (3) an interaction effect between country sample and strategic studying on the dependent variable of reported grade point average.

Originality/value

The research focuses on student initiative in the educational process. Also, comparative evidence from the Middle Eastern context is provided. This area has received relatively little attention in the literature.

Details

Journal of Applied Research in Higher Education, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2050-7003

Keywords

To view the access options for this content please click here
Article
Publication date: 21 September 2010

Mohammad G. Robbani and Rafiqul Bhuyan

The purpose of this paper is to examine the short‐term reactions of stock prices to the announcement of earnings restatement by the public companies listed in the Toronto…

Abstract

Purpose

The purpose of this paper is to examine the short‐term reactions of stock prices to the announcement of earnings restatement by the public companies listed in the Toronto stock exchange in Canada.

Design/methodology/approach

The paper conducts an empirical study. For the purpose conducting the empirical study, a standard event study methodology has been utilized to examine the effect of restatement announcements on the stock returns. The dates of the announcement of restatement by each company have been collected and the effect of the announcement has been studied surrounding the announcement dates.

Findings

The results of empirical works indicate that, in general, the financial market reacts negatively to any restatement of earnings. This is evident from the fact that irrespective of the reasons for restatement, all restatements show a negative effect on the stock price. The impact of the restatement announcements is significant for all the prediction intervals. However, the long‐term reaction is more pronounced compared to short‐term reaction. In addition, the negative reaction is much higher for those reasons that are directly related to the earnings management than those that do not involve any active earnings management.

Research limitations/implications

Since the paper investigates only one stock exchange, it may have a limited application in other financial markets. Similar researches can be undertaken for other financial markets different in size, scope or geographical location.

Practical implications

The findings of the paper may have broad implications both for individual investors and corporate executives. The decisions made by executives on restatements affect stock price and hence the investors' rate of return. Since the general effect of such restatement is negative on the stock returns, it may portray a negative perception about the company. Therefore, the paper has implications on the decisions made by both the investors and the corporate executives.

Originality/value

The paper studied the Canadian stock market which was not studied in the past to examine the reactions of restatement.

Details

International Journal of Accounting & Information Management, vol. 18 no. 3
Type: Research Article
ISSN: 1834-7649

Keywords

Content available
Article
Publication date: 24 February 2012

Abstract

Details

International Journal of Accounting & Information Management, vol. 20 no. 1
Type: Research Article
ISSN: 1834-7649

Keywords

1 – 4 of 4