No evidence that the cap on deductibility has affected CEO compensation: Various specifications
(1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | |
---|---|---|---|---|---|---|---|---|
VARIABLES | ||||||||
Post-2012 health insurance company | -5423 | -1221 | -807.4 | 533.7 | 416.4 | 143.4 | 161.9 | -1640 |
(3891) | (3701) | (3058) | (2435) | (3420) | (2880) | (3335) | (3407) | |
Net income | 0.405* | 117.8*** | 129.0*** | 98.67*** | ||||
(0.221) | (0.888) | (4.580) | (8.027) | |||||
Sales | 0.00499 | -16.20*** | -16.34*** | -20.19*** | ||||
(0.0296) | (0.164) | (0.178) | (1.871) | |||||
Market value | 0.0703** | -4.903*** | -4.981*** | -4.683*** | ||||
(0.0328) | (0.0290) | (0.0420) | (0.245) | |||||
Difference in net income | -0.263*** | -0.294** | -0.255** | -0.175* | ||||
(0.0996) | (0.118) | (0.116) | (0.102) | |||||
Difference in sales | 0.117*** | 0.0971** | 0.0849** | 0.100** | ||||
(0.0316) | (0.0401) | (0.0391) | (0.0405) | |||||
Difference in market value | 0.0246 | 0.0315 | 0.0313 | 0.0326 | ||||
(0.0207) | (0.0255) | (0.0257) | (0.0275) | |||||
Health insurance dummy | 6517 | |||||||
(5001) | ||||||||
Net income (t=-1) | 0.330 | 830.5*** | ||||||
(0.203) | (2.440) | |||||||
Sales (t=-1) | -0.00699 | 28.32*** | ||||||
(0.0294) | (0.351) | |||||||
Market value (t=-1) | 0.0558 | -0.0191 | ||||||
(0.0437) | (0.0233) | |||||||
Difference in net income (t=-1) | -0.0856 | -0.121* | ||||||
(0.0599) | (0.0688) | |||||||
Difference in sales (t=-1) | 0.109*** | 0.104*** | ||||||
(0.0410) | (0.0324) | |||||||
Difference in market value (t=-1) | 0.0336 | 0.0434 | ||||||
(0.0600) | (0.0456) | |||||||
Sales (t=-2) | 0.0114 | |||||||
(0.0290) | ||||||||
Market value (t=-2) | 0.0312 | |||||||
(0.0489) | ||||||||
Difference in net income (t=-2) | -0.0167 | |||||||
(0.121) | ||||||||
Difference in sales (t=-2) | -0.0667 | |||||||
(0.0670) | ||||||||
Difference in market value (t=-2) | 0.130*** | |||||||
(0.0306) | ||||||||
Retirement year dummy | 1948** | 2986*** | ||||||
(785.2) | (1067) | |||||||
Retirement year dummy (t=-1) | -7624*** | -7654*** | ||||||
(724.5) | (724.8) | |||||||
Constant | 5147*** | 14918*** | 14554*** | 16418*** | 164371*** | -916823*** | 158177*** | 205891*** |
(826.5) | (427.9) | (581.4) | (672.2) | (1826) | (1238) | (3039) | (22399) | |
Observations | 4188 | 3410 | 2966 | 2598 | 3410 | 2966 | 3410 | 3410 |
Number of firms | 556 | 411 | 381 | 349 | 411 | 381 | 411 | 411 |
R-squared, within | 0.0265 | 0.0408 | 0.0234 | 0.0198 | 0.127 | 0.125 | 0.143 | 0.169 |
R-squared, between | 0.0260 | 0.229 | 0.237 | 0.348 | 0.317 | 0.250 | 0.329 | 0.329 |
R-squared, overall | 0.0237 | 0.112 | 0.112 | 0.129 | 0.218 | 0.219 | 0.231 | 0.250 |
Notes: * p<.05; ** p<.01; *** p<.001. Model 1 provides a baseline for comparison and only includes dummy variables to designate the treatment group, all health insurers, and years. Model 2 does not include interactions or lags. Model 3 does not include interactions, and all variables are lagged by one year. Model 4 does not include interactions, and all variables are lagged by two years. Model 5 includes industry-specific interactions, but no lags. Model 6 includes industry-specific interactions, and all variables are lagged by one year. Model 7 includes industry-specific interactions, as well as a retirement dummy. Model 8 includes industry-specific interactions, as well as retirement and year dummies.
Source: Authors' analysis of data from Compustat's ExecuComp database.