Abstract
This paper examines the relationship between organization capital and promotion-based tournament incentives. Using a sample of 33,618 publicly listed U.S. firm-year observations covering 1992–2020, the results show that firms with high levels of organization capital have relatively more promotion-based tournament incentives, and that tournament incentives in high organization capital firms improve firm value and operating performance.
Original language | English |
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Article number | 102468 |
Pages (from-to) | 1-8 |
Number of pages | 8 |
Journal | Finance Research Letters |
Volume | 46 |
Issue number | Part B |
Early online date | 20 Sep 2021 |
DOIs | |
Publication status | Published - May 2022 |
Keywords
- Agency costs
- CEO compensation
- Organizational capital
- Tournament incentives