Consequences of Executive Focus on Support Activities: Evidence from Executive Influence on Firm Tax Strategy

2020 ◽  
Author(s):  
Adam Olson
Keyword(s):  
Labor Market ◽  
Firm Performance ◽  
Knowledge Spillover ◽  
Top Executives ◽  
Market Consequences ◽  
Executive Ability

Should executives solely focus on core activities of the firm? Or is it beneficial to focus on both core and support activities? If core and support activities are substitutes, focusing on both activities will take energy and attention away from core activities. If core and support activities are complements, focusing on both activities may lead to synergies and knowledge spillover. Further, it could be the case that individual executive characteristics impact these relations. Using executive influence on firm tax strategy as a proxy for executive focus on support activities, I find that executive focus on support activities is associated with poorer firm performance and negative executive labor market consequences. These results are partially moderated by executive ability and background. Overall, the results suggest top executives perform best when focused solely on core activities, consistent with core and support activities being substitutes.

scholarly journals Peer Effects in the Workplace

2017 ◽  
Vol 107 (2) ◽  
pp. 425-456 ◽  
Author(s):  
Thomas Cornelissen ◽  
Christian Dustmann ◽  
Uta Schönberg
Keyword(s):  
Labor Market ◽  
Real World ◽  
Peer Effects ◽  
Laboratory Experiments ◽  
Peer Groups ◽  
Knowledge Spillover ◽  
Social Pressure ◽  
Local Labor Market ◽  
Estimation Strategy

Existing evidence on peer effects in the productivity of coworkers stems from either laboratory experiments or real-world studies referring to a specific firm or occupation. In this paper, we aim at providing more generalizable results by investigating a large local labor market, with a focus on peer effects in wages rather than productivity. Our estimation strategy—which links the average permanent productivity of workers' peers to their wages—circumvents the reflection problem and accounts for endogenous sorting of workers into peer groups and firms. On average over all occupations, and in the type of high-skilled occupations investigated in studies on knowledge spillover, we find only small peer effects in wages. In the type of low-skilled occupations analyzed in extant studies on social pressure, in contrast, we find larger peer effects, about one-half the size of those identified in similar studies on productivity. (JEL J24, J31, J41, M12, M54)

Labor market consequences of accounting fraud

2010 ◽  
Vol 10 (3) ◽  
pp. 321-333 ◽  
Author(s):  
Chun‐Keung Hoi ◽  
Ashok Robin
Keyword(s):  
Labor Market ◽  
Accounting Fraud ◽  
Market Consequences

When Are Pay Gaps Good or Bad for Firm Performance? Evidence from China

2020 ◽  
Vol 16 (5) ◽  
pp. 1030-1056
Author(s):  
Jin-hui Luo ◽  
Yuangao Xiang ◽  
Ruichao Zhu
Keyword(s):  
Firm Performance ◽  
Relative Deprivation ◽  
Nonlinear Effects ◽  
State Ownership ◽  
Firm Productivity ◽  
Ongoing Debate ◽  
Top Executives ◽  
Tournament Theory ◽  
Low Levels ◽  
Pay Inequality

ABSTRACTThere is still an ongoing debate regarding the firm performance implications of pay gaps between top executives and subordinate employees. This study integrates relative deprivation theory and tournament theory to investigate the potential nonlinear effects of pay gaps. We expect that at low levels of pay inequality, increased inequality hurts firm productivity, while at higher levels of pay inequality, increased inequality helps firm productivity. Our study of Chinese firms confirms that pay gaps have an approximately U-shaped relationship with firm performance. This nonlinear relationship is weaker in state-owned enterprises (SOEs) than in non-SOEs, suggesting that state ownership is an important moderator in the association. Overall, this study explains previous mixed findings regarding consequences of pay gaps with meaningful implications for policymakers and entrepreneurs in China and other economies with similar cultural and institutional backgrounds.

Labor Market Consequences of State Health Insurance Regulation

ILR Review ◽  
2002 ◽  
Vol 56 (1) ◽  
pp. 136 ◽  
Author(s):  
Robert Kaestner ◽  
Kosali Ilayperuma Simon
Keyword(s):  
Labor Market ◽  
Health Insurance ◽  
Insurance Regulation ◽  
State Health ◽  
State Health Insurance ◽  
Market Consequences
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