Does firm life cycle have impacts on managerial promotion tournament incentives?
Article
Article Title | Does firm life cycle have impacts on managerial promotion tournament incentives? |
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ERA Journal ID | 19154 |
Article Category | Article |
Authors | Chowdhury, Hasibul (Author) and Shams, Syed (Author) |
Journal Title | Australian Journal of Management |
Journal Citation | 46 (4), pp. 593-628 |
Number of Pages | 36 |
Year | 2021 |
Place of Publication | United Kingdom |
ISSN | 0312-8962 |
1327-2020 | |
Digital Object Identifier (DOI) | https://doi.org/10.1177/0312896220974417 |
Web Address (URL) | https://journals.sagepub.com/doi/10.1177/0312896220974417 |
Abstract | We examine whether and how firm-level promotion tournament incentives for executives, measured by the pay gap between a chief executive officer (CEO) and non-CEO executives, vary in different corporate life-cycle stages. Results show that managerial tournament incentives are higher in growth and mature life-cycle stages than in introduction and decline stages. In additional analyses, we find that firms design compensation contracts for growth and mature life-cycle stages with a target to increase tournament incentives for non-CEO executives that induce managerial risk-taking behaviour, leading to high productivity and performance. |
Keywords | firm life cycle, tournament incentives |
ANZSRC Field of Research 2020 | 350202. Finance |
Public Notes | Files associated with this item cannot be displayed due to copyright restrictions. |
Byline Affiliations | University of Queensland |
School of Commerce | |
Institution of Origin | University of Southern Queensland |
https://research.usq.edu.au/item/q6074/does-firm-life-cycle-have-impacts-on-managerial-promotion-tournament-incentives
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