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

November 28, 2014


Abstract:     
We study whether and how politicians can influence the behaviour of CEOs and firm performance with prestigious government awards. We present a simple model to develop the hypothesis that government awards have a negative effect on firm performance. The empirical analysis uses two legal reforms in New Zealand for identification: knighthoods and damehoods were abolished in April 2000 but reinstated in March 2009. The findings are consistent with the predictions of the model. The results suggest that awards serve as an incentive tool through which politicians influence firms in favour of employees to the detriment of shareholders.

Number of Pages in PDF File: 34

Keywords: Awards, CEO Incentives, Employment, Stakeholder-oriented Firms

JEL Classification: G30, J33, J38

working papers series





Download This Paper

Date posted: April 5, 2014 ; Last revised: November 29, 2014

Suggested Citation

Raff, Konrad and Siming, Linus, Knighthoods, Damehoods, and CEO Behaviour (November 28, 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
Feedback to SSRN


Paper statistics
Abstract Views: 1,738
Downloads: 167
Download Rank: 107,984

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo2 in 0.281 seconds