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Article
Publication date: 30 September 2022

Effah Amponsah, Dulani Halvitigala, Hyemi Hwang and Chris Eves

This paper aims to examine the compensation practices and the valuation methods valuers apply in the context of the current legal framework for expropriation to assess…

Abstract

Purpose

This paper aims to examine the compensation practices and the valuation methods valuers apply in the context of the current legal framework for expropriation to assess compensation for farms impacted by mining in Ghana.

Design/methodology/approach

Compensation reports and archival materials were examined to identify the issues related to the valuation methods, compensation practices and expropriation procedures in the mining sector. Interviews were then conducted with 35 farmers and farmers' representatives, officials of mining companies, representatives of the Land Valuation Division of the Lands Commission and valuers/researchers on the issues identified through the document analysis.

Findings

The results reveal that the lack of express standards for assessing compensation for mining-impacted crops has occasioned variations in the valuation methods and the standard crop population for compensation. The study further reveals the impacts of exchange rate distortions on crop compensation values.

Practical implications

The study empirically substantiates the arguments for a revised compensation regime in Ghana's mining sector. Valuers, mining companies and policymakers' awareness of this research will impact farm compensation valuation practices in the future.

Social implications

The adequacy of compensation for mining-impacted farmers remains a topical issue, especially in African countries. This research contributes to the literature and reveals the socio-economic impacts of the current compensation regime on the livelihoods of expropriated farmers.

Originality/value

This paper is the first to analyse the valuation methods, the compensation values and the key parameters valuers apply in assessing compensation for mining-impacted crops in Ghana.

Details

Property Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0263-7472

Keywords

Article
Publication date: 30 September 2022

Adam Welker

Prior studies show that accounting considerations related to executive compensation impact managerial incentives, which in turn can impact real investment. These studies…

Abstract

Purpose

Prior studies show that accounting considerations related to executive compensation impact managerial incentives, which in turn can impact real investment. These studies, however, largely omit the role of one key incentive: the duration of executive compensation. This study addresses this gap by examining the impact of accounting costs on duration. The findings have important implications not only for the determinants of duration but also the potential role duration plays in incentivizing corporate investment.

Design/methodology/approach

This study exploits a plausibly exogenous increase in the accounting cost of option compensation under accounting rule FAS 123R to determine the impact of accounting considerations on managerial incentives and particularly the duration of executive compensation. Heterogeneity in firm-level exposure to the rule is exploited under a difference-in-difference framework. The sample comprises S&P 500 firms for the years 2002–2008.

Findings

The analysis shows that under FAS 123R, which increased the accounting cost of option compensation, duration is impacted more for affected firms than are delta and vega, two other key incentives highlighted in the literature. While duration, delta and vega are all highly intertwined making disentangling the individual impact of each incentive difficult, cross-sectional evidence suggests changes in research and development (R&D) spending are more likely attributable to changes in duration rather than vega or delta.

Originality/value

The evidence in this study shows how accounting considerations shape managerial incentives, particularly duration, and provides new insights into the relationship between duration and R&D spending.

Details

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

Keywords

Article
Publication date: 13 September 2022

Meiwu Liu, Lijuan Peng, Rui Huang, Hanxiao Liu, Yunlong Duan and Shanwei Lin

The purpose of this study is to examine whether and how independent director-CEO friendliness has an impact on the enterprise's sustainable growth capability and further…

Abstract

Purpose

The purpose of this study is to examine whether and how independent director-CEO friendliness has an impact on the enterprise's sustainable growth capability and further explore how corporate social responsibility (CSR) and executive compensation affect the relationship in the Chinese context.

Design/methodology/approach

Using a sample of Chinese-listed companies from 2010 to 2020, the study adopts fixed effects models to empirically analyze the effect of independent director-CEO friendliness on the enterprise's sustainable growth capability and the roles of CSR and executive compensation.

Findings

This study finds that independent director-CEO friendliness is significantly positively correlated with the sustainable growth capability of an enterprise, and this effect is enhanced with the improvement of the degree of CSR fulfillment. What is more, the positive relationship between independent director-CEO friendliness and the enterprise's sustainable growth capability becomes stronger with higher executive compensation.

Originality/value

Given that the existing research on sustainable growth capability mainly focused on the macroeconomic field, this study is of great theoretical significance in exploring the relationship between independent director-CEO friendliness and the enterprise's sustainable growth capability from the micro-level, contributing to the research on the enterprise's sustainable growth capability. In addition, this study considers the boundary conditions of CSR and executive compensation from internal and external perspectives, respectively, as it is innovative to elucidate organizational development from the perspective of internal and external balance.

Details

Cross Cultural & Strategic Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2059-5794

Keywords

Article
Publication date: 15 August 2022

Serdar Turedi and Asligul Erkan-Barlow

The purpose of this paper is to examine the effects of managerial myopia on information technology (IT) investment. Specifically, it aims to investigate the influence of…

Abstract

Purpose

The purpose of this paper is to examine the effects of managerial myopia on information technology (IT) investment. Specifically, it aims to investigate the influence of chief information officer (CIO) compensation on IT investment and the moderating role of the board monitoring strength on this relationship.

Design/methodology/approach

The study examines a sample of 194 firms listed on US stock exchanges with a CIO position in 2019. The authors employ hierarchical regression analysis to test the hypothesis.

Findings

The results show that CIO compensation negatively influences IT investment. Further, even though vigilant board monitoring does not necessarily reduce such opportunistic behaviors, weak board monitoring creates an environment for such actions.

Research limitations/implications

First, the cross-sectional data can limit the results' generalizability. Second, the sampling frame is not perfectly random as it consists of firms that have CIO compensation information in the ExecuComp for 2019. Third, we include only two measures of board monitoring strength.

Practical implications

Board of directors should wisely select compensation packages' components since equity incentives potentially exacerbate managerial myopia. Moreover, firms may regulate CIOs' investment behaviors through board-level IT governance.

Originality/value

This study is one of the few studies that utilize CIO sensitivity to measure CIO compensation. Moreover, by examining the factors affecting IT investment behavior, this study sheds light on CIO incentives' impact on IT investment behaviors. Finally, to the best of the authors' knowledge, this is the first study to investigate board monitoring's role in the relationship between CIO sensitivity and IT investment intensity.

Details

Review of Behavioral Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1940-5979

Keywords

Article
Publication date: 28 June 2013

Doreen Lilienfeld, John Cannon, Amy Gitlitz Bennett and George Spera

The purpose of this paper is to explain the amendments to the listing standards of the New York Stock Exchange (NYSE) and the NASDAQ Stock Market (Nasdaq), which were…

273

Abstract

Purpose

The purpose of this paper is to explain the amendments to the listing standards of the New York Stock Exchange (NYSE) and the NASDAQ Stock Market (Nasdaq), which were approved by the Securities and Exchange Commission (the SEC) on January 11, 2013 to implement the SEC's final rules on the independence of compensation committees and their selection of advisors pursuant to Rule 952 of the Dodd‐Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd Frank).

Design/methodology/approach

After a summary of notable provisions, the paper explains effective dates and respective Nasdaq and NYSE listing standards pertaining to compensation committee compensation; director independence standards, advisors, and charters; certain exemptions for foreign issuers; exemptions for certain types of companies and partnerships; and recommended next steps for companies that are subject to the amended listing standards.

Findings

Over the past few years, the independence of compensation committees and their advisors has been a hot button corporate governance issue. Dodd‐Frank prohibits national securities exchanges from listing any equity security of an issuer that is not in compliance with the exchanges' compensation committee independence and advisor requirements.

Practical implications

The listing standards generally become effective on July 1, 2013; however, listed companies have until the earlier of: their first annual meeting after January 15, 2014; or October 31, 2014, to comply with certain requirements including the independence structure of their compensation committees.

Originality/value

The paper provides practical advice from experienced financial services lawyers.

Article
Publication date: 11 April 2008

Nina T. Dorata and Steven T. Petra

This study seeks to examine whether CEO duality further exacerbates CEOs' motivation of self‐interest to engage in mergers and acquisitions to increase their compensation.

3007

Abstract

Purpose

This study seeks to examine whether CEO duality further exacerbates CEOs' motivation of self‐interest to engage in mergers and acquisitions to increase their compensation.

Design/methodology/approach

Regression tests using CEO compensation as the dependent variable, and CEO duality, firm size and firm performance as independent test and control variables. The regression tests are used for various sub‐samples of the firms, those that merge and those that have CEO duality.

Findings

The results indicate that for merging firms CEO compensation is positively associated with firm size. However, this association is unaffected by CEO duality. For non‐merging firms, the results indicate that CEO compensation is positively associated with firm size and firm performance. CEO duality moderates the positive association between CEO compensation and firm performance.

Research limitations/implications

This study is limited to the extent that it does not observe the deliberations of compensation committees in their setting of CEO compensation, but only examines the outcomes of those deliberations. A future area of research is to examine compensation schemes of merger/acquisition CEOs in the context of other government structures, such as board independence and composition.

Practical implications

Shareholders who desire to keep CEO compensation levels positively associated with firm performance may consider supporting the separation of the positions of CEO and Chairperson of the Board.

Originality/value

This study contributes to the literature by concluding that governance structure influences CEO compensation schemes and CEOs of merging firms command higher compensation in spite of governance structure and firm performance.

Details

Managerial Finance, vol. 34 no. 5
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 13 February 2007

P.S. Ogedengbe

The purpose of this paper is to focus on the problems of compensation for compulsory acquisition of oil exploration fields in Delta State with particular reference to the…

1342

Abstract

Purpose

The purpose of this paper is to focus on the problems of compensation for compulsory acquisition of oil exploration fields in Delta State with particular reference to the oil field acquired by Agip Oil Company for gas pipeline way leave in Irri and Okpai towns of Delta State.

Design/methodology/approach

A survey was conducted in which questionnaires were administered on some residents whose lands were acquired compulsorily on one hand and some estate surveying and valuation firms who are professionals in the fields of compensation on the other hand. The data collected were analyzed and presented using simple statistical methods.

Findings

The findings in this paper show that the compensation paid to residents whose lands were acquired is grossly inadequate, since professionals are not always involved in the process.

Practical implications

The paper shows that the issue of compensation for compulsory acquisition for oil exploration is very central in the oil‐rich Niger‐Delta, and if this is not handled carefully, it can lead to uncontrollable crisis.

Originality/value

This paper empirically examined the process involved in compulsory acquisition and compensation of land in the Niger‐Delta for oil exploration with a view to determining the adequacy or otherwise of the compensation paid.

Details

Journal of Property Investment & Finance, vol. 25 no. 1
Type: Research Article
ISSN: 1463-578X

Keywords

Article
Publication date: 1 January 2005

Christopher P. Reynolds and Richard W. Black

In recent years, the compensation practices of employers, including financial services firms, have come under increasing attack by the government and private plaintiffs…

Abstract

In recent years, the compensation practices of employers, including financial services firms, have come under increasing attack by the government and private plaintiffs amid allegations of pay discrimination. These attacks have taken place in a number of forums, ranging from administrative investigations, to single‐plaintiff and multi‐plaintiff litigation and, perhaps most significantly, to the class action arena. An employer’s potential exposure in these types of cases ‐ especially those brought on behalf of multitudes of employees ‐ can be significant. This past summer, for example, Morgan Stanley announced a $54 million settlement with the Equal Employment Opportunity Commission of a class action that included claims of gender discrimination in pay. Shortly thereafter, The Boeing Co. agreed to pay up to $72.5 million to settle a class action gender discrimination suit brought by approximately 29,000 salaried and hourly female employees alleging discrimination in pay, promotions, overtime, assignments, bonuses, and other conditions of employment. In the well‐publicized Wal‐Mart employment discrimination class action, the district court certified a class action involving pay discrimination claims covering more than one million women in both hourly and salaried jobs in Wal‐Mart’s 3,400 stores across the nation. And, last year, a law firm primarily engaged in representing plaintiffs in discrimination litigation was enlisted by the National Council of Women’s Organizations to investigate alleged discrimination at Wall Street firms, including compensation discrimination.

Details

Journal of Investment Compliance, vol. 5 no. 4
Type: Research Article
ISSN: 1528-5812

Keywords

Article
Publication date: 1 June 1997

Yu Hsing and Wen‐Jeng Lin

CEOs' compensation has received a great deal of attention in recent years. Some criticised that CEOs' compensation is not responsive to their performance, because some…

Abstract

CEOs' compensation has received a great deal of attention in recent years. Some criticised that CEOs' compensation is not responsive to their performance, because some CEOs still received the same or more compensation even if their companies incurred losses. Others complained that the compensation received by some of the CEOs was so astronomical that it can not be justified with any rational explanations. Many also maintained that some CEOs do not care about employees' wellbeing and shareholders' interest in the determination of their compensation in view of the facts that many workers received pay cuts or declining compensation in real terms and are laid off in the re‐structuring of organisations in order for firms to become more competitive domestically and worldwide.

Details

Management Research News, vol. 20 no. 6
Type: Research Article
ISSN: 0140-9174

Article
Publication date: 13 January 2020

Yu Liu, Jie Hao, Panli Kang, Zhihua Sha, Fujian Ma, Dapeng Yang and Shengfang Zhang

The purpose of this paper is to establish a rigid–flexible coupling model of wind turbine disc brake to simulate the actual working condition of the wind turbine brake and…

Abstract

Purpose

The purpose of this paper is to establish a rigid–flexible coupling model of wind turbine disc brake to simulate the actual working condition of the wind turbine brake and to study the dynamic characteristics of the compensation mechanism under different friction coefficients and braking force. It provides reference for the structure design and optimization of the compensation mechanism (compensation brake wear) in the wind turbine brake.

Design/methodology/approach

Based on multi-body contact dynamics theory, the rigid‒flexible coupling dynamic model of wind turbine brakes with compensation mechanism is established, in which the contact process of the components in the compensation mechanism and the phenomenon of rotation and return are described dynamically, and the rotation angle of the compensation nut and the axial displacement response of the compensation screw are calculated under different parameters.

Findings

The analysis results show that the braking reliability of the brake compensation mechanism can be effectively improved by increasing the friction coefficient of threads or increasing the friction of push rod contact surface; increasing the braking force can also improve the reliability of brake compensation mechanism, but when the braking force comes over a critical value, the effect of braking force on the reliability of the brake is very small. The braking test verifies the effectiveness of the simulation results.

Originality/value

Analyzing the influence of compensation mechanism on braking reliability in the braking process is of great practical significance for improving the braking efficiency and process safety of wind turbine brake.

Details

Multidiscipline Modeling in Materials and Structures, vol. 16 no. 3
Type: Research Article
ISSN: 1573-6105

Keywords

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