Within-Firm Pay Inequality

• 成果类型: Article
• 署名作者: Mueller, Holger M.; Ouimet, Paige P.; Simintzi, Elena
• 署名单位: New York University; National Bureau of Economic Research; Center for Economic & Policy Research (CEPR); European Corporate Governance Institute; University of North Carolina; University of North Carolina Chapel Hill; University of British Columbia
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhx032
• 发表日期: 2017
• 页码: 3605
• 关键词: CORPORATE GOVERNANCE; ceo pay; equity prices; stock returns; earnings; MARKET; COMPENSATION; rise; equilibrium; COMPETITION

摘要

Financial regulators and investors have expressed concerns about high pay inequality within firms. Using a proprietary data set of public and private firms, this paper shows that firms with higher pay inequality-relative wage differentials between top-and bottom-level jobs-are larger and have higher valuations and stronger operating performance. Moreover, firms with higher pay inequality exhibit larger equity returns and greater earnings surprises, suggesting that pay inequality is not fully priced by the market. Our results support the notion that differences in pay inequality across firms are a reflection of differences in managerial talent.