Working Paper

What does earnings management signal? The role of managerial honesty in investment decisions

Accounting earnings management elicits varying reactions: To some observers, it signals low managerial honesty. To others, it indicates that firm managers are sharing private information. Accordingly, different investors may respond differently...Read more

Alexander Wagner
Rajna Gibson Brandon
Matthias Sohn
Carmen Tanner
20 July 2017

The Additional Costs of CEO Compensation: The Effect of Relative Wealth Concerns of Employees

Do employees who compare themselves to the CEO matter for executive compensation? We hypothesize that employees have relative wealth concerns and compare their wage to the CEO’s pay. Using German establishmentlevel wage data, we indeed show that...Read more

Ingolf Dittmann
Christoph Schneider
Yuhao Zhu
17 April 2018

The Politics of CEOs

This article studies the political preferences of chief executive officers (CEOs) of public companies. We use Federal Election Commission records to compile a comprehensive database of the political contributions made by more than 3800...Read more

Alma Cohen
Moshe Hazan
Roberto Tallarita
David Weiss
14 May 2019

Are CEOs paid extra for riskier pay packages?

This paper quantifies the cost of CEO incentive compensation by estimating an elasticity of pay to the variance of pay. Using US CEO compensation data and a variety of empirical approaches, we find that CEOs with riskier pay packages are paid...Read more

Ana M. Albuquerque
Rui Albuquerque
Mary Ellen Carter
Qi (Flora) Dong
11 September 2020