Johan, S., Li, P., Zhan, F. et al. (1 more author) (2025) Winner or Winner's Curse? Do CEOs and Companies Benefit From Internal Competition. European Financial Management. ISSN: 1354-7798
Abstract
We investigate whether features of the tournament structure determine the cross-sectional variation in the pay premiums of tournament winners and whether the level of rewards for tournament winners is related to future firm performance. Using a unique data set of 116 internal Chief Executive Officer (CEO) succession events in US bank holding companies, we find that the winner's pay premium level is positively associated with the steepness of the tournament structure before CEO succession. Higher pay premiums reflect the new CEO's managerial ability as perceived by shareholders and are also associated with greater improvements in bank performance following CEO succession.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | This is an author produced version of an article published in European Financial Management made available under the terms of the Creative Commons Attribution License (CC-BY), which permits unrestricted use, distribution and reproduction in any medium, provided the original work is properly cited. |
Keywords: | bank performance, internal succession, pay premium, tournament structure |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Accounting & Finance Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 28 Aug 2025 08:47 |
Last Modified: | 28 Aug 2025 12:35 |
Published Version: | https://onlinelibrary.wiley.com/doi/10.1111/eufm.7... |
Status: | Published online |
Publisher: | Wiley |
Identification Number: | 10.1111/eufm.70008 |
Related URLs: | |
Sustainable Development Goals: | |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:230780 |
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Filename: Author Accepted Manuscript_Winner or Winners Curse.pdf
Licence: CC-BY 4.0