CEO pay slice and the sunk-cost effect
DC Field | Value | Language |
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dc.contributor.author | Yang, D. | - |
dc.contributor.author | Jung, S.H. | - |
dc.date.available | 2020-02-17T06:40:22Z | - |
dc.date.issued | 2019-09 | - |
dc.identifier.issn | 1099-9264 | - |
dc.identifier.uri | https://scholarworks.bwise.kr/cau/handle/2019.sw.cau/37516 | - |
dc.description.abstract | The sunk-cost effect refers to obsessive attachment to prior investments, possibly impairing corporate-value sustainability. This paper explores whether CEOs become susceptible to the sunk-cost effect as their pay slice (a pay gap among a CEO and the other top managers) increases. In situations where information is insufficient to determine an option because of lower collaboration with other top executives (caused by a sense of unfairness), high CEO pay slice induces the CEO to feel burdened and not confess her/his investment failures. This may more likely lead to the justification of previous decisions and continuous reinvestment despite negative consequences. Supporting this conjecture, we find that a CEO’s susceptibility to the sunk-cost effect increases with CEO pay slice. Our evidence, which adds to the understanding of the sunk-cost effect in the corporate environment, suggests a vital clue for the mechanisms of how a relatively overpaid CEO affects corporate-value sustainability. © 2019, Allied Business Academies. All rights reserved. | - |
dc.language | 영어 | - |
dc.language.iso | ENG | - |
dc.publisher | Allied Business Academies | - |
dc.title | CEO pay slice and the sunk-cost effect | - |
dc.type | Article | - |
dc.identifier.bibliographicCitation | International Journal of Entrepreneurship, v.23, no.3 | - |
dc.description.isOpenAccess | N | - |
dc.identifier.scopusid | 2-s2.0-85074116345 | - |
dc.citation.number | 3 | - |
dc.citation.title | International Journal of Entrepreneurship | - |
dc.citation.volume | 23 | - |
dc.type.docType | Article | - |
dc.publisher.location | 미국 | - |
dc.subject.keywordAuthor | CEO Pay Slice (CPS) | - |
dc.subject.keywordAuthor | Compensation System | - |
dc.subject.keywordAuthor | Corporate Sustainability | - |
dc.subject.keywordAuthor | Investment Decision-Making | - |
dc.subject.keywordAuthor | Sunk-Cost Effect | - |
dc.description.journalRegisteredClass | scopus | - |
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