|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 listsInternational Geophysical Year reading group 16-17 Aitken Lectures Philosophy and History of Science
Other talksThe path to delivering nuclear fusion power To be confirmed Gendered violence in South Asia: the politics of knowledge and practice Maximising home delivery Effect of prospective motion correction on fMRI data/ Task-positive activity in the task-negative default-mode network An evidence based strategy for preventing obesity and type 2 diabetes