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

317 NTU Management Review Vol. 29 No. 1 Apr. 2019 Finally, we conducted multivariate regression analyses to examine whether CEO incentives were associated with bank performance. The results confirm that CEO incentives generally had significant impacts on bank liquidity holding policies. The 2-stage least square regressions indicate that the coefficients of liquidity across all regressions in the prior-financial crisis period for the whole sample were all significant. The significant association of CEO incentives, bank liquidity, and bank performance were mainly derived from S&P 1,500 banks. Taken together, our empirical studies provide detailed evidence that CEO incentives play an important role in determining bank liquidity policy. Banks with different levels of CEO incentives tend to conduct different types of business policies, affecting bank liquidity holdings and bank performance. This effect is particularly strong for S&P 1,500 banks. Our analyses show insignificant linkage between bank liquidity, CEO incentives, and bank performance for non-S&P 1,500 banks. This study also provides supplementary evidence that negligence of bank liquidity policy is one of the main reasons for financial crises (Acharya and Naqvi, 2012).