Do common inherited beliefs and values influence CEO pay?

• 成果类型: Article
• 署名作者: Ellahie, Atif; Tahoun, Ahmed; Tuna, Irem
• 署名单位: Utah System of Higher Education; University of Utah; University of London; London Business School
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2017.09.002
• 发表日期: 2017
• 关键词: executive-compensation; IDENTITY; uk; performance; INNOVATION; ECONOMICS; Managers; scotland; origins; matter

摘要

We use the ethnicity of CEOs across 31 countries as a proxy for their common inherited beliefs and values and find an ethnicity effect in CEO variable pay. We find that the ethnicity effect in variable pay is not driven by the ethnicity effects in corporate policy decisions, and that changes in CEO compensation are significantly larger when CEOs are replaced with a person from a different ethnicity. Our estimated ethnicity effect captures the future time reference and religion of CEOs' ancestors. Finally, we find an ethnicity effect in performance-firing sensitivities (i.e., the sensitivity to being fired due to poor performance). (C) 2017 Elsevier B.V. All rights reserved.