Tournament theory and its relevance to executive pay pdf
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- Executive pay dispersion, corporate governance, and firm performance
- Penale diritto manuale complementari
- AUSTRALIAN EXECUTIVE REMUNERATION: EVIDENCE ON STRUCTURE AND ACCOUNTING DETERMINANTS
This study explores a relatively new source of Australian executive pay information disclosed in published Annual Reports since It offers not only a different source from which to compare the results of US studies, but also an extension of the studies through the additional Australian disclosure requirements. The first section of the paper examines four possible determinants of Australian executive remuneration, accounting rates of return, firm size, industry and executive control through share holding. In the second part of the paper we used the data to analyse whether the structure of pay in Australian companies is consistent with a particular hypothesis derived from tournament theory. Evans, R.
Executive pay dispersion, corporate governance, and firm performance
In this chapter, we address three pay for performance PFP questions. First, what are the conceptual mechanisms by which PFP influences performance? Second, what programs do organizations use to implement PFP and what is the empirical evidence on their effectiveness? Third, what perils and pitfalls arise on the way from PFP theory to its execution in organizations? We address these questions in general terms, but also highlight unique issues that arise in PFP for teams and for executives. For example, strengthening PFP links can generate powerful motivation effects, but sometimes these are in unintended and unanticipated directions, resulting in undesirable effects.
Skip to search form Skip to main content You are currently offline. Some features of the site may not work correctly. DOI: Chen and M. Ezzamel and Ziming.
Penale diritto manuale complementari
Tournament theory is the theory in personnel economics used to describe certain situations where wage differences are based not on marginal productivity but instead upon relative differences between the individuals. The theory has been applied to professional sports and to the practice of law. Tournament theory also was applied to writing - one writer may be fractionally better at writing than another and therefore have a better book , but because people allocate small amounts of time to reading, the writer with the marginally better book will sell far more copies. Lazear and Rosen proposed tournament theory in their paper Rank-Order Tournaments as Optimum Labor Contracts , looking at performance related pay. Under conventional systems workers are paid a piece rate - an amount of money that relates to their output, rather than the time they input. Tournament theory suggests that workers can be rewarded by their rank in an organization, suggesting why large salaries are given to senior executives: to provide a 'prize' to those who put in enough effort to garner one of the top positions.
Jing Chen jing2. In this paper, we test two models of executive pay that have not received much attention in research on Chinese listed companies: managerial power theory and tournament theory. We also find that executive directors' organization level as reflected in executive pay level for each of the three highest paid executives is positively related to executive remuneration and the relationship is convex, and negatively related to the interaction between executive directors' organization level and government ownership. Tournament prize executive pay is not related to the number of contestants in the tournament and is negatively related to the interaction term between number of contestants and government ownership. Finally, earnings per share EPS as a measure of firm performance is positively related to the pay gap between contestants and negatively related to the interaction term between pay gap and government ownership.
The issue of Tournament Theory, which was first mentioned by Edward Lazear and Sherwin Rosen in (Shen, Gentry and Tosi , ; Norton , 36), is related to a special CEO and executive compensation structure that rather focuses on a reward system than on absolute performance compensation to the subject.
AUSTRALIAN EXECUTIVE REMUNERATION: EVIDENCE ON STRUCTURE AND ACCOUNTING DETERMINANTS
In this study, we examine a compensation element that has not received so far considerable research attention—the dispersion of compensation across managers—and its impact on firm performance. We examine the implications of two theoretical models dealing with pay dispersion—tournament versus equity fairness. Tournament theory stipulates that a large pay dispersion provides strong incentives to highly qualified managers, leading to higher efforts and improved enterprise performance, while arguments for equity fairness suggest that greater pay dispersion increases envy and dysfunctional behavior among team members, adversely affecting performance. We also document that the positive association between firm performance and pay dispersion is stronger in firms with high agency costs related to managerial discretion.
From its very beginnings, BRQ provides widespread coverage of high quality research in a broad range of topics such as human resource management, organization theory, strategic management, corporate governance, managerial economics, marketing, finance, accounting and operations management. It is therefore a multidisciplinary journal inspired by diversity and open to methodological plurality. Our main concern is that articles have strong theoretical foundations, meet the highest analytical standards, and provide new insights that contribute to the better understanding of managerial phenomena.
Chen, Jing; Ezzamel, Mahmoud; Cai, Ziming
Они уже пытались сделать то же самое в Мулен Руж, в отеле Брауне пэлис и в Голфиньо в Лагосе. Но что попало на газетную полосу. Правда. Самый гнусный Веллингтон из всех, что мне доводилось пробовать. Самая грязная ванна, какую мне доводилось видеть. И самый мерзкий пляж, покрытый острыми камнями.
Вовсе. Пересек границу неделю. - Наверное, хотел сюда переехать, - сухо предположил Беккер. - Да. Первая неделя оказалась последней.