Dissecting corporate tournaments: Multilayered structures and firm performance

IF 4.9 3区 管理学 Q1 BUSINESS, FINANCE
Sang Ahn, Jeong-Hoon Hyun, Kentaro Koga, Jae Yong Shin
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引用次数: 0

Abstract

This study examines the association between firm performance and promotion incentives (i.e., the product of vertical pay disparity and promotion probability) in multilayer corporate tournaments using a unique data set of Korean public firms. We dissect the corporate tournament into layers and separately examine their association with firm performance while also accounting for the role of promotion probability. We find that (1) upper-layer, rather than lower-layer, tournaments are the main drivers of the positive association between vertical pay disparity and firm performance and (2) this association becomes stronger with higher promotion probability, consistent with tournament theory, but only in the upper layer. These results are more pronounced in settings where tournament incentives are plausibly more important, such as those characterized by high labor productivity and high average tenure. Our study draws a comprehensive picture of the corporate tournaments that simultaneously accounts for various factors that previous studies have examined only in isolation.

Abstract Image

剖析公司锦标赛:多层结构和公司绩效
本研究使用韩国上市公司的独特数据集,考察了多层公司锦标赛中公司绩效与晋升激励(即垂直薪酬差异和晋升概率的乘积)之间的关系。我们将公司锦标赛分解为层次,并分别检查它们与公司绩效的关系,同时也考虑了晋升概率的作用。我们发现(1)高层而非低层赛事是垂直薪酬差异与企业绩效之间正相关关系的主要驱动因素;(2)晋升概率越高,这种关联越强,这与赛事理论一致,但仅在高层。这些结果在比赛激励似乎更重要的环境中更为明显,例如那些以高劳动生产率和高平均任期为特征的环境。我们的研究描绘了一幅公司锦标赛的全面图景,同时解释了以前的研究只能孤立地检查的各种因素。
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来源期刊
CiteScore
6.20
自引率
11.10%
发文量
97
期刊介绍: Contemporary Accounting Research (CAR) is the premiere research journal of the Canadian Academic Accounting Association, which publishes leading- edge research that contributes to our understanding of all aspects of accounting"s role within organizations, markets or society. Canadian based, increasingly global in scope, CAR seeks to reflect the geographical and intellectual diversity in accounting research. To accomplish this, CAR will continue to publish in its traditional areas of excellence, while seeking to more fully represent other research streams in its pages, so as to continue and expand its tradition of excellence.
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