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

CEO Incentives and Bank Liquidity Management 296 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 B: Return on equity Panel B.1: All banks High CEO Incentives 10.60 14.29 0.81 8.59 13.28 -1.52 (11.68)*** (51.28)*** (0.26) (10.79)*** (43.89)*** (-0.66) Low CEO Incentives 7.37 11.38 -3.56 5.09 11.69 -10.07 (6.65)*** (50.05)*** (-0.90) (3.61)*** (37.51)*** (-2.28)** Difference (High-Low) 3.23 2.90 4.37 3.51 1.59 8.55 (2.26)** (8.07)*** (0.86) (2.17)** (3.66)*** (1.72)* Panel B.2: S&P 1,500 banks High CEO Incentives 10.74 15.74 -4.18 7.88 14.99 -5.51 (5.23)*** (45.54)*** (-0.53) (4.10)*** (39.02)*** (-1.06) Low CEO Incentives 5.30 11.09 -5.40 4.77 13.68 -23.73 (2.39)** (19.28)*** (-0.92) (1.12)*** (25.98)*** (-1.40) Difference (High-Low) 5.44 4.65 1.22 3.11 1.31 18.22 (1.80)* (6.92)*** (0.12) (0.67) (2.02)** (1.03) Panel B.3: Non-S&P 1,500 banks High CEO Incentives 10.51 13.30 3.63 8.99 12.38 1.08 (15.26)*** (33.66)*** (1.77)* (14.64)*** (30.48)*** (0.67) Low CEO Incentives 7.71 11.43 -3.15 5.15 11.21 -7.88 (6.23)*** (46.31)*** (-0.67) (3.55)*** (31.05)*** (-1.81)* Difference (High-Low) 2.81 1.87 6.78 3.84 1.16 8.96 (1.98)** (4.02)*** (1.32) (2.44)** (2.14)** (1.93)* 4.3 Multiple Regression Analysis 4.3.1 CEO Incentives and Bank Liquidity Next, we used a multivariate framework to examine the relation between bank liquidity and CEO incentives. Table 9 contains the results for the whole sample and subsamples. The panels show the empirical results according to the different measures of CEO incentives. Panel A of Table 9 shows that CEO equity incentives (%) and CEO equity risk exposures significantly affected the level of bank liquidity at the 5% level