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Symmetry in Pay for Luck
Journal article   Peer reviewed

Symmetry in Pay for Luck

Naveen D. Daniel, Yuanzhi Li and Lalitha Naveen
The Review of financial studies, v 33(7), pp 3174-3204
01 Jul 2020

Abstract

Business & Economics Business, Finance Economics Social Sciences
In this study, we take a comprehensive look at asymmetry in pay for luck, which is the finding that CEOs are rewarded for good luck, but are not penalized to the same extent for bad luck. Our main takeaway, which is based on over 200 different specifications, is that there is no asymmetry in pay for luck. Our finding is important given that the literature widely accepts the idea of asymmetry in pay for luck and typically points to this as evidence of rent extraction.

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Collaboration types
Domestic collaboration
Web of Science research areas
Business, Finance
Economics
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