TY  - RPRT
        AU  - Cuñat, Vicente
AU  - Giné, Mireia
AU  - Guadalupe, Maria
        TI  - Say Pays! Shareholder Voice and Firm Performance
        PY  - 2014/Oct/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 8538
        UR  - https://www.iza.org/index.php/publications/dp8538
        AB  - This paper estimates the effects of Say-on-Pay (SoP); a policy that increases shareholder "voice" by providing shareholders with a regular vote on executive pay. We apply a regression discontinuity design to the votes on shareholder-sponsored SoP proposals. Adopting SoP leads to large increases in market value (4%) and to improvements in long-term performance: profitability and labor productivity increase, while overheads and investment fall. In contrast, we find limited effects on pay levels and structure. This suggests that SoP serves as a regular vote of confidence on the CEO, which leads to higher efficiency and market value.
        KW  - executive compensation
KW  - corporate governance
KW  - say-on-pay
        ER  -