Table 17 Regressions estimating the sensitivity of CEO compensation to RPE
From: Preaching water but drinking wine? Relative performance evaluation in international banking
Independent variables | Industry peer group | Industry/size peer group |
|---|---|---|
Intercept | 2.06* | 2.15* |
(0.07) | (0.08) | |
Firm stock return | 0.47*** | 0.55*** |
(0.00) | (0.00) | |
Peer return (industry) | − 0.12 | |
(0.75) | ||
Peer return (industry/size) | − 0.32* | |
(0.08) | ||
Firm size (sales) | 0.36*** | 0.36*** |
(0.00) | (0.00) | |
Growth options | − 1.19 | − 1.27 |
(0.21) | (0.21) | |
Year dummies | Yes | Yes |
Industry dummies | Yes | Yes |
Country dummies | Yes | Yes |
Adjusted R 2 | 79.14% | 79.36% |
Number of observations | 335 | 335 |
Number of clusters | 5 | 5 |