EXECUTIVE COMPENSATION DISPERSION AND FIRM PERFORMANCE

Date created
2014-12
Authors/Contributors
Author: Li, Jinzhi
Author: Peng, Xinjie
Abstract
In this study, we examine the correlation between managerial pay dispersion and firm performance. We conduct a horse race between two different theories---tournament theory versus behavioral theory. We come to the conclusion that firm performance, measured by abnormal return, is positively associated wtih managerial compensation dispersion. The result is in consistent with the tournament theory.
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Description
MSc in Finance Project-Simon Fraser University
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No
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