| Authors |
Burns, Minnick, Starks |
| Journal |
Journal of Financial and Quantitative Analysis |
| Year |
2017 |
| Type |
Published Paper |
| Abstract |
Using a cross-country sample, we examine the chief executive officer (CEO) tournament structure (measured alternatively as the ratio and the difference of pay between the CEO and other top executives within a firm). We find the tournament structure to vary systematically with firm and country cultural characteristics. In particular, firm size and the cultural values of power distance, fair income differences, and competition are significantly associated with variations in tournament structures. We also establish support for the primary implication of tournament theory in that tournament structure tends to be positively related to firm value, even after controlling for endogeneity. |
| Keywords |
CEO tournament structure, cultural values, firm decisions, firm values |
| URL |
https://doi.org/10.1017/S0022109017000163 |
| Tags |
Archival Empirical |
Manager / Firm Behavior
|