Elon University / Today at Elon / Drew Peabody publishes article in Research in International Business and Finance
Research co-authored by the assistant professor of finance evaluates executive compensation practices for businesses and their impact on corporate decision-making.
Drew Peabody, assistant professor of finance in the Martha and Spencer Love School of Business, co-authored an article exploring executive compensation practices in businesses in the December 2022 issue of Research in International Business and Finance.
In “Does incentive conflict between CEOs and CFOs benefit firms? Implications for corporate decision-making,” Peabody and co-authors Feng Han and Qi Qin, both at Capital University of Economics and Business, evaluate how incentive conflict between CEOs and CFOs, defined as the disparity in risk-taking incentives between the two executives, impacts corporate decision-making.
“We find that when incentive conflict between CEOs and CFOs is larger, firms enjoy less risk through the adoption of more conservative financial policies,” the co-authors wrote in the article’s abstract. “Greater incentive conflict is associated