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How does executive compensation influence voluntary turnover?

Corporate remuneration schemes can attract, retain, and motivate executives to exert effort and align their interests with shareholders’ interests. Prior studies find that executives are likely to resign when they are paid less than their peers, leading to a high rate of managerial turnover. However, paying excess compensation reduces firm value and it’s commonly related to firm underperformance. On the other hand, replacing top executives can be extremely costly for firms. Therefore, it’s very important to understand the reasons behind …

Study level
PhD, Master of Philosophy
Faculty
Faculty of Business and Law
School
School of Accountancy

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