Econometric modelling of UK executive compensation

Martin J. Conyon, Simon I. Peck, Graham Sadler

Research output: Contribution to journalArticlepeer-review

20 Citations (Scopus)


An examination of insider trading before and after the announcement of Credit Watch placements sheds new light on the study of both bond rating changes and insider trading. This paper utilizes Credit Watch placements classified by 11 identifiable trigger events for the years 1981-1990. We find significant insider purchases before positive implication placements, but no sales before negative implication placements. Among individual trigger events, we observe significant insider purchases before and after placements due to improved operating performance, bidding on a firm with a higher debt rating and firms increasing their debt-to-equity ratios. Significant insider purchases are found before placements due to purchasing assets. Significant insider sales are found before and after placements due to poor operating performance.

Original languageEnglish
Pages (from-to)3-20
Number of pages18
JournalManagerial Finance
Issue number9
Publication statusPublished - 1 Jan 2000
Externally publishedYes


  • Corporate governance
  • Executive compensation

ASJC Scopus subject areas

  • Finance
  • Strategy and Management


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