Influence of Firm Size on CEOs Compensation

A Review of Recent Research on CEOs ’ Influence on Firm Performance

ABSTRACT Title of dissertation: SELECTION OF STAR CEOS AND ITS IMPLICATIONS ON FIRM PERFORMANCE AND CEO COMPENSATION

Title of dissertation: SELECTION OF STAR CEOS AND ITS IMPLICATIONS ON FIRM PERFORMANCE AND CEO COMPENSATION Minwen Li, Doctor of Philosophy, 2010 Dissertation directed by: Professor Vojislav Maksimovic, Dean's Chair Professor of Finance, Department of Finance My dissertation examines a board’s decision to hire a star CEO and the implication of such decision on the new CEO compensation and firm ...

How Does Opportunistic Behavior Influence Firm Size

This paper relates firm size and opportunism by showing that, given certain behavioral dispositions of humans, the size of a profit-maximizing firm can be determined by cognitive aspects underlying firminternal cultural transmission processes. We argue that what firms do better than markets – besides economizing on transaction costs – is to establish a cooperative regime among its employees tha...

Firm Size, Economic Situation and Influence Activities

Firm Size, Economic Situation and Influence Activities This paper discusses the optimal firm size in the presence of influence activities, and the level of individual rent-seeking dependent on the economic situation of the firm. Since firm size has a discouraging effect on the level of individual rent-seeking but also a quantity effect as the number of rent-seekers increases, the interplay of b...

Optimal Executive Compensation when Firm Size Follows Geometric Brownian Motion

This paper studies a continuous-time agency model in which the agent controls the drift of the geometric Brownian motion firm size. The changing firm size generates partial incentives, analogous to awarding the agent equity shares according to her continuation payoff. When the agent is as patient as investors, performance-based stock grants implement the optimal contract. Our model generates a ...