English, Article edition: Executive Compensation and Tournament Theory: Empirical Tests on Danish Data. Eriksson, Tor

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Bookmark: http://trove.nla.gov.au/version/196051
Physical Description
  • article
Language
  • English

Edition details

Title
  • Executive Compensation and Tournament Theory: Empirical Tests on Danish Data.
Author
  • Eriksson, Tor
Physical Description
  • article
Notes
  • This article adds to the empirical literature on tournament theory as a theory of executive compensation. The author tests several propositions of tournament models on a rich data set containing information about 2,600 executives in 210 Danish firms during a four-year period. He asks if pay differentials between job levels are consistent with relative compensation; if pay dispersion between levels is higher in noisy environments; if the dispersion is affected by the number of tournament participants; if average pay is lower in firms with more compressed pay structures; and if wider pay dispersion enhances firm performance. Most of the predictions gain support in the data. Copyright 1999 by University of Chicago Press.
  • RePEc:ucp:jlabec:v:17:y:1999:i:2:p:262-80
Language
  • English
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