Abstract

http://ssrn.com/abstract=2495105
 


 



FORE! An Analysis of CEO Shirking


Lee Biggerstaff


Miami University of Ohio - Department of Finance

David C. Cicero


University of Alabama - Culverhouse College of Commerce & Business Administration

Andy Puckett


University of Tennessee, Knoxville

August 1, 2014


Abstract:     
Using golf play as a measure of leisure, we document that there is significant variation in the amount of leisure that CEOs consume. We find that they consume more leisure when they have lower equity-based incentives. CEOs that golf frequently (i.e., those in the top quartile of golf play, who play at least 22 rounds per year) are associated with firms that have lower operating performance and firm values. Numerous tests accounting for the possible endogenous nature of these relations support a conclusion that CEO shirking causes lower firm performance. We find that boards are more likely to replace CEOs who shirk, but CEOs with longer tenures or weaker governance environments appear to avoid disciplinary consequences.

Number of Pages in PDF File: 50

Keywords: CEO, Chief Executive Officer, Shirking, Leisure, Incentives Compensation

JEL Classification: G30, G32, G34


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Date posted: September 13, 2014 ; Last revised: November 5, 2014

Suggested Citation

Biggerstaff, Lee and Cicero, David C. and Puckett, Andy, FORE! An Analysis of CEO Shirking (August 1, 2014). Available at SSRN: http://ssrn.com/abstract=2495105 or http://dx.doi.org/10.2139/ssrn.2495105

Contact Information

Lee Biggerstaff
Miami University of Ohio - Department of Finance ( email )
Oxford, OH 45056
United States
David C. Cicero (Contact Author)
University of Alabama - Culverhouse College of Commerce & Business Administration ( email )
Culverhouse College of Business
Tuscaloosa, AL 35487-0223
United States
Andy Puckett
University of Tennessee, Knoxville ( email )
437 Stokely Managment Center
Knoxville, TN 37996
United States
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