臺大管理論叢 NTU Management Review VOL.29 NO.1

CEO Incentives and Bank Liquidity Management 294 Table 8 Univariate Analysis: Average Bank Performance Across Different Level of CEO Incentives This table presents the univariate analysis on the relations between CEO incentives and bank performance, return on assets (%) and return on equity (%) from 1992 to 2012. We divided our research period into two different sub-periods and compared the difference in bank performance under the level of CEO incentives for the different research periods. The pre-financial crisis period is 1992 to 2006, and 2007 to 2012 is the post-crisis period. Panels A present the results of return on assets for the whole sample, S&P 1,500 banks, and non-S&P 1,500 banks, respectively. Panel B Level of CEO Incentives 1. CEO cash bonus 2. CEO equity incentive ($) 1992-2012 1992-2006 2007-2012 1992-2012 1992-2006 2007-2012 Panel A: Return on asset Panel A.1: All banks High CEO Incentives 1.00 1.23 0.37 0.83 1.15 0.15 (26.74)*** (53.93)*** (3.39)*** (20.85)*** (50.53)*** (1.48) Low CEO Incentives 0.78 1.00 0.17 0.70 1.03 -0.08 (20.95)*** (40.25)*** (1.57) (15.00)*** (37.90)*** (-0.65) Difference (High-Low) 0.22 0.23 0.20 0.14 0.11 0.23 (4.17)*** (6.86)*** (1.31) (2.22)** (3.19)*** (1.44) Panel A.2: S&P 1,500 banks High CEO Incentives 1.08 1.36 0.27 0.86 1.31 0.02 (16.47)*** (45.10)*** (1.23) (10.63)*** (39.00)*** (0.11) Low CEO Incentives 0.67 1.07 -0.06 0.83 1.25 -0.54 (5.47)*** (24.96)*** (-0.21) (6.86)*** (33.85)*** (-1.34) Difference (High-Low) 0.41 0.28 0.33 0.04 0.05 0.56 (2.94)*** (5.44)*** (0.89) (0.25) (1.09) (1.25) Panel A.3: Non-S&P 1,500 banks High CEO Incentives 0.94 1.15 0.43 0.81 1.06 0.23 (21.34)*** (36.34)*** (3.59)*** (19.16)*** (37.02)*** (2.14)** Low CEO Incentives 0.79 0.99 0.22 0.67 0.98 -0.01 (20.77)*** (35.76)*** (1.95)* (13.34)*** (30.59)*** (-0.05) Difference (High-Low) 0.15 0.16 0.21 0.15 0.08 0.24 (2.49)** (3.73)*** (1.25) (2.23)** (1.89)* (1.43)