Do common inherited beliefs and values influence CEO pay?

Ellahie, Atif; Tahoun, Ahmed; Tuna, İrem

doi:10.1016/j.jacceco.2017.09.002

Cited by 56 publications

(28 citation statements)

References 38 publications

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“…Ellahie et al (2016) find that FTR also influences preferences regarding monetary rewards. Specifically, they document that top executives whose linguistic origin has strong FTR prefer variable pay.…”

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confidence: 84%

Languages and earnings management

Kim

Zhou

2017

Journal of Accounting and Economics

165

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We predict that managers of firms in countries where languages do not require speakers to grammatically mark future events perceive future consequences of earnings management to be more imminent, and therefore, they are less likely to engage in earnings management. Using data from 38 countries where languages differ on how they encode time, we find that accrual-based earnings management and real earnings management are less prevalent where there is weaker time disassociation in the language. Our analysis based on the birthplace information of U.S. firms' CEOs confirms the relation between languages and earnings management. Our study is the first to examine the relation between the grammatical structure of languages and financial reporting characteristics, and it extends the literature on the effect of informal institutions on corporate actions.

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confidence: 84%

Languages and earnings management

Kim

Zhou

2017

Journal of Accounting and Economics

165

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“…4 Using a different source to establish the origin of last names, Ellahie et al (2017) find that 47% of the CEOs in their sample have U.S. ancestry.…”

Section: Tablementioning

confidence: 99%

Board Ancestral Diversity and Firm-Performance Volatility

Giannetti¹,

Zhao²

2018

J. Financ. Quant. Anal.

114

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We proxy for board members’ opinions and values using directors’ ancestral origins and show that diversity has costs and benefits, leading to high performance volatility. Consistent with the idea that diverse groups experiment more, firms with ancestrally diverse boards have more numerous and more cited patents. In addition, their strategies conform less to those of the industry peers. However, firms with greater ancestral diversity also have more board meetings and make less predictable decisions. These findings suggest that diversity may lead to inefficiencies in the decision-making process and conflicts in the boardroom.

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“…Instead of the 13 groups from the Ambekar, et al (2009) algorithm, we now classify CEOs and fund managers into only four groups (Asian, Black, Hispanic and White). Second, we use an alternative algorithm from Onolytics (formerly OnoMap) that has already been used in existing academic studies, e.g., Ellahie, Tahoun, and Tuna (2016) and Giannetti and Zhao (2016). This algorithm bases the origin of a name on both the first and last name instead of just the surname.…”

Section: Panel a Reports Results For Several Alternative Measures Of mentioning

confidence: 99%

Knowing Me, Knowing You? Similarity to the CEO and Fund Managers' Investment Decisions

Jaspersen

Limbach

2018

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. ABSTRACTThis study provides evidence that investors' demographic similarity to CEOs affects their investment decisions. We find that mutual fund managers overweight firms led by CEOs who resemble them in terms of age, ethnicity and gender. This finding is robust to excluding educational and local ties and is supported by variation in similarity caused by CEO departures. Investing in firms run by similar CEOs, on average, is associated with superior performance and is more pronounced when CEOs have more impact on their firms. Results suggest that demographic similarity to CEOs facilitates informed trading, implying that investors' information production incorporates firm management.JEL classification: G11, G23, J10

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Do common inherited beliefs and values influence CEO pay?

Cited by 56 publications

References 38 publications

Languages and earnings management

Languages and earnings management

Board Ancestral Diversity and Firm-Performance Volatility

Knowing Me, Knowing You? Similarity to the CEO and Fund Managers' Investment Decisions

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