EFFECT OF CEO PAY AND CEO POWER ON RISK-TAKING OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

Authors

  • Ismaila Yusuf Federal University Dutsin-Ma, Katsina State
  • Salisu Abubakar, PhD Ahmadu Bello University Zaria
  • Idris Ahmed Aliyu, PhD Ahmadu Bello University Zaria
  • Aneitie Charles Dikki , PhD Ahmadu Bello University Zaria

Keywords:

Executive Compensation, powerful CEOs, compensation, CEO power, risk-taking

Abstract

It has been argued that increasing demand for high compensation by executives and powers in the hand of executives have contributed to increased risk-taking in the banking industry. The study aims to examine the effect of CEO Pay, CEO Ownership Power, and Expert Power on risk-taking of listed deposit money banks in Nigeria. A sample of 12 deposit money banks for the period 2009 – 2019 was studied and analysed using panel regression. The study found that CEO pay and CEO Expert power have no significant effect on risk-taking of listed deposit money banks in Nigeria. In contrast, CEO Ownership power was found to influence risk-taking significantly. The study recommends strengthening the influence of independent directors on the board to mitigate the influence of powerful CEOs.

Author Biographies

Ismaila Yusuf, Federal University Dutsin-Ma, Katsina State

Department of Accounting,
Federal University Dutsin-Ma, Katsina

Salisu Abubakar, PhD, Ahmadu Bello University Zaria

Department of Accounting,
ABU Business School,
Ahmadu Bello University, Zaria

Idris Ahmed Aliyu, PhD, Ahmadu Bello University Zaria

Department of Insurance and Actuarial Science,
ABU Business School,
Ahmadu Bello University, Zaria

Aneitie Charles Dikki , PhD, Ahmadu Bello University Zaria

Department of Accounting,
ABU Business School,
Ahmadu Bello University, Zaria

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Published

2022-10-26

How to Cite

Ismaila Yusuf, Salisu Abubakar, Idris Ahmed Aliyu, & Aneitie, C. D. (2022). EFFECT OF CEO PAY AND CEO POWER ON RISK-TAKING OF LISTED DEPOSIT MONEY BANKS IN NIGERIA. Gusau Journal of Accounting and Finance, 3(1), 21. Retrieved from https://www.journals.gujaf.com.ng/index.php/gujaf/article/view/110

Issue

Vol. 3 No. 1 (2022): Gusau Journal of Accounting and Finance

Section

Articles

License

Copyright (c) 2022 Author

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.