Tips to navigate the program:
- Overview of all papers on a specific day: click on the day (e.g. Date: Thursday, 24/Aug/2017). To download papers, you will need to access the session by clicking on its title first.
- Program index: click on the Authors tab below.
- Location name: to display all sessions taking place in that room
- Search box: to search for authors, papers and sessions.
Please notes that changes in the program might occur.
If your name is not displayed in the program, please register in our conference system.
If your paper information is not up to date, please send us an email at email@example.com.
FL-4: Careers and Compensation
CEO Marketability, Employment Opportunities, and Compensation: Evidence from Compensation Peer Citations
1University of Alabama; 2Auburn University
We provide evidence that the 2006 compensation peer group disclosure rule increased the transparency and efficiency of the executive labor market. Our analysis is based on the insight that the breadth with which a firm is cited as a compensation peer by other companies provides information about its executives’ outside opportunities. Executives at firms that are cited more frequently are more likely to leave their current firms or to receive compensation increases. Firms appear to increase the equity-based component of CEO compensation, in particular, which could be useful for retaining sought-after executives. We provide further evidence using a difference-in-differences framework that the greater transparency increased labor market mobility and put upward pressure on overall CEO compensation levels. This last result is noteworthy given that the intent of the rule was to ensure that firms do not abuse compensation benchmarking to justify higher executive compensation.
Career Risk and Market Discipline in Asset Management
1Indiana University; 2Università di Napoli Federico II
Using unique, hand-collected data about the careers of 1,375 individuals who became hedge fund managers, we analyze the speed with which they rise to top positions in asset management and the risk of setbacks in their careers. First, we find that employees who start their career from low-level jobs rise faster and more steadily to top positions than those starting from medium-level jobs, especially for males. Second, job-level transitions are typically associated with switches across employers, but employees who switch infrequently across employers have faster and more stable careers, suggesting that longer stretches of time with a few employers allow better learning of workers' skills than frequent churning. Third, we investigate career risk using fund liquidation as a laboratory, and find that the careers of high-ranking employees are significantly and permanently damaged by the liquidation of the fund they work for.
The Effect of Superstar Firms on College Major Choice
1Chinese University of Hong Kong; 2London School of Economics; 3Hong Kong University of Science and Technology
We study the effect of superstar firms on an important human capital decision -- college students' choice of majors. Past salient, extreme events in an industry, as proxied by cross-sectional skewness in stock returns or in favorable news coverage, are associated with a disproportionately larger number of college students choosing to major in related fields, even after controlling for the average industry return. This tendency to follow the superstars, however, results in a temporary over-supply of human capital. Specifically, we provide evidence that the additional labor supply due to salient, extreme events lowers the average wage earned by entry-level employees when students enter the job market. At the same time, employment size and employee turnover stay roughly constant in related industries, consistent with the view that labor demand is relatively inelastic in the short run. In the longer term, firms cope with the supply increase by gradually expanding the number of positions that require prior experience.
Contact and Legal Notice · Contact Address:
Conference: EFA 2017
|Conference Software -
ConfTool Pro 2.6.109+TC
© 2001 - 2017 by H. Weinreich, Hamburg, Germany