A Canonical Correlation Analysis of CEO Compensation and Corporate Performance in the Service Industry

Eunsup “Daniel” Shim, Jooh Lee

Research output: Contribution to journalReview articlepeer-review

3 Scopus citations

Abstract

This paper attempts to examine a canonical (simultaneous) relationship between service industry CEOs' compensation and corporate performance with respect to accounting-based and market-based performance measures. In addition, this study examines the effect of firm size on compensation. The results of this study suggest that executive compensation depends simultaneously on both market-based and accounting-based performance measures. EPS, ROA, ROE and Market Rate of Return are positively associated with both cash compensation and long-term compensation. Firm size is also positively related to the long-term compensation.

Original languageEnglish (US)
Pages (from-to)72-90
Number of pages19
JournalReview of Accounting and Finance
Volume2
Issue number3
DOIs
StatePublished - Mar 1 2003

All Science Journal Classification (ASJC) codes

  • Accounting
  • General Economics, Econometrics and Finance
  • Finance

Fingerprint

Dive into the research topics of 'A Canonical Correlation Analysis of CEO Compensation and Corporate Performance in the Service Industry'. Together they form a unique fingerprint.

Cite this