Three Essays on Executive Compensation - KOPS - Universität ...

Profit Sharing with Executives
Table 3.6: Beta Regression Analysis and Economic Effects for the Top Management’s
Bonus Ratio (BR)
Beta Reg. Logit ∆ SDx ∆ SDx ∆ SDx
0 < BR < 1 BR = 0 0 < BR < 1 BR = 0 0 ≤ BR < 1
Capital intensity -1.681*** 1.827 -0.0012*** 0.0032 -0.0012***
(-6.33) (1.22) (-6.23) (1.21) (-6.31)
R&D intensity 0.1972 0.8794 0.0001 0.0014 0.0001
(0.54) (0.46) (0.54) (0.46) (0.44)
Market-to-book -0.0045 -0.0299 -0.0002 -0.0039 -0.0002
(-1.21) (-0.94) (-1.22) (-0.93) (-0.88)
Sales growth 0.0023 -1.739*** 0.00002 -0.0382*** 0.0006***
(0.33) (-2.67) (0.33) (-2.84) (2.78)
Interest -4.038*** -21.95** -0.0006*** -0.0079** -0.0005**
(-2.90) (-2.22) (-2.85) (-2.13) (-2.23)
Leverage 0.0046 0.0264 0.0001 0.0020 0.0001
(1.43) (0.59) (1.42) (0.58) (0.95)
Dividends -7.489*** 4.600 -0.0028*** 0.0043 -0.0028***
(-6.35) (1.25) (-6.21) (1.25) (-6.21)
Dividend payout ratio 0.3198*** -0.0448 0.0018*** -0.0006 0.0018***
(7.94) (-0.33) (7.62) (-0.33) (7.77)
Long-term incentives -0.9318*** 2.388*** -0.0028*** 0.0177*** -0.0030***
(-14.54) (4.51) (-13.51) (5.04) (-14.07)
Firm size -0.00002*** -0.00003 -0.0035*** -0.0202 -0.0031***
(-11.24) (-1.41) (-12.14) (-1.56) (-9.44)
Stock return 0.2894*** -1.256*** 0.0018*** -0.0188*** 0.0020***
(7.94) (-4.18) (8.20) (-3.94) (9.00)
Profitability -0.1264 -1.535** -0.0001 -0.0044** -0.0001
(-0.70) (-2.32) (-0.71) (-2.17) (-0.39)
Cash flow volatility 0.0035*** -0.0006 0.0005*** -0.0002 0.0005***
(4.72) (-0.18) (4.65) (-0.18) (4.97)
Year dummies yes yes yes yes yes
Industry dummies yes yes yes yes yes
Observations 3633 3859 3633 3859 3859
Column one shows results of a beta regression with 0 < BR < 1 as the dependent variable. Column
two shows results of a logit regression with the dependent variable y = 1 if BR = 0. Columns three
and four show estimates of the effect of a 1-standard deviation change in x k , with x l evaluated at its
mean ∀l ≠ k, and based on the marginal effects calculated from the estimates in columns one and two
(similar to columns one and three of Table 3.4, see the caption of Table 3.4 for an example). Column
five shows the combined estimate of a 1-standard deviation change in x k on the dependent variable
0 ≤ BR < 1. Explanatory variables are defined in Table 3.2. All monetary variables are adjusted for
inflation. All regressions include year and industry dummies. z-values in parentheses are calculated as
coefficient estimates over robust standard errors. Significance levels of 1, 5 and 10 percent are indicated
by ***, ** and *, respectively.
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