Abstract

http://ssrn.com/abstract=2420066
 


 



Knighthoods, Damehoods, and CEO Behaviour


Konrad Raff


Norwegian School of Economics (NHH)

Linus Siming


Bocconi University - Department of Finance; Bocconi University - IGIER - Innocenzo Gasparini Institute for Economic Research

April 3, 2014


Abstract:     
This paper studies theoretically and empirically whether and how governments can affect the behaviour of CEOs through the use of knighthoods and damehoods. Our model predicts that such awards have a negative effect on firm performance. This effect is stronger in non-competitive industries. The empirical analysis uses two legal reforms in New Zealand: knighthoods and damehoods were abolished in April 2000 but reinstated in August 2009. The findings are consistent with the predictions of the model. Overall, our results indicate that governments can redirect firms towards a "stakeholder view"; through the use of highly prestigious and scarcely awarded honours to the detriment of shareholders.

Keywords: Awards, CEO Incentives, Knighthood, Competition

JEL Classification: G30, J33, J38

working papers series


Not Available For Download

Date posted: April 5, 2014 ; Last revised: July 30, 2014

Suggested Citation

Raff, Konrad and Siming, Linus, Knighthoods, Damehoods, and CEO Behaviour (April 3, 2014). Available at SSRN: http://ssrn.com/abstract=2420066 or http://dx.doi.org/10.2139/ssrn.2420066

Contact Information

Konrad Raff
Norwegian School of Economics (NHH) ( email )
Department of Finance
Helleveien 30
Bergen, 5045
Norway
HOME PAGE: http://sites.google.com/site/raffkonrad/
Linus Siming (Contact Author)
Bocconi University - Department of Finance ( email )
Via Roentgen 1
Milano, MI 20136
Italy
Bocconi University - IGIER - Innocenzo Gasparini Institute for Economic Research ( email )
Via Roentgen 1
Milan, 20136
Italy
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