Start Date

8-1-2011 9:45 AM

End Date

8-1-2011 10:30 AM

Track

2. Track 2 - Poster Session

Subject Area

Finance and Economics

Faculty Member

Jingxue (Jessica) Yuan jessica.yuan@ttu.edu

Abstract

Executive compensation is increasingly becoming a target by media, shareholders, and government regulators. Excessive or poorly structured compensation arrangements have been blamed for the U.S. financial crisis of 2008 and it has been questioned why executives were being paid out the bonuses and other benefits even though their companies were losing shareholder value. Agency theory explains part of the problem is due to the separation of management from ownership. This study investigated the relationship between executive compensation and firm performance in the restaurant industry.

Keywords

executive compensation, agency theory, restaurant industry



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Jan 8th, 9:45 AM Jan 8th, 10:30 AM

Executive Compensation and Firm Performance in the U.S. Restaurant Industry: An Agency Theory Approach

Executive compensation is increasingly becoming a target by media, shareholders, and government regulators. Excessive or poorly structured compensation arrangements have been blamed for the U.S. financial crisis of 2008 and it has been questioned why executives were being paid out the bonuses and other benefits even though their companies were losing shareholder value. Agency theory explains part of the problem is due to the separation of management from ownership. This study investigated the relationship between executive compensation and firm performance in the restaurant industry.