|COOKIES: By using this website you agree that we can place Google Analytics Cookies on your device for performance monitoring.|
What Death Can Tell: Are Executives Paid for Their Contributions to Firm Value?
If you have a question about this talk, please contact Rachel Marston.
An efficient managerial labor market should compensate executives according to their contribution to shareholder value. We provide novel empirical evidence about the relationship between executive pay and managerial contribution to value by exploiting the exogenous variation resulting from stock price reactions to sudden deaths. We find, first, that the managerial labor market is characterized by positive sorting: managers with high contributions to value obtain higher pay. We find, second, that executives appear, on average, to retain about 80% of the value they create. Overall, our results are informative about the workings of the managerial labor market.
This talk is part of the Cambridge Finance Workshop Series series.
This talk is included in these lists:
Note that ex-directory lists are not shown.
Other listsCardiovascular Epidemiology Unit Special Seminars Centre for Molecular Science Informatics Holocaust Memorial Day
Other talksExploratory Data Analysis Intermediation and Voluntary Exposure to Counterparty Risk Developing Sustainable Architecture Fantastical pottery creatures by Andrew Hull Post-hoc tests, multiple comparisons, contrasts and handling interactions Carbon-dioxide motion and reaction in subsurface aquifers