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earnings. When stock-based compensation motivates managers to share their private information with shareholders, it will … expedite the pricing of future earnings in current stock prices. In contrast, when equity-compensated managers attempt to … management forecast frequency. Overall, our study suggests that on average, equity-based compensation improves the …
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percent and 1 percent of the within-firm wage distribution rise substantially. Instead, the effect on average wages is small …
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Research Question/Issue: Do large, within-firm executive pay differences hurt firm performance? Prior literature shows mixed results concerning the sign of the relationship between executive pay disparity and firm performance. This study evaluates that literature, clarifies what tournament...
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