Publication
The influence of executive compensation on innovation
| datacite.subject.fos | Ciências Sociais::Economia e Gestão | |
| dc.contributor.advisor | Cerqueiro, Geraldo | |
| dc.contributor.advisor | Novotny-Farkas, Zoltan | |
| dc.contributor.author | Werner, Thiemo | |
| dc.date.accessioned | 2015-12-09T15:14:16Z | |
| dc.date.available | 2015-12-09T15:14:16Z | |
| dc.date.issued | 2015-11-04 | |
| dc.date.submitted | 2015 | |
| dc.description.abstract | This dissertation examines the relationship between CEO compensation components and the innovation capabilities of publicly traded companies in the United States of America. Based on an extensive literature review, I hypothesize that payment components with convex payoffs as well as those with long-term payoffs have a positive influence on innovation. Further, I expect cash based compensations to have no or a negative influence on innovation. Lastly, I develop a hypothesis regarding instruments that protect executives in case of failure and their positive influence on innovation. Using a sample of S&P 1500 constituents over 14 years, I find that an increase of the proportion of stock options in CEO compensation has a positive influence on innovation input and output as well as on innovation effectiveness. I obtain similar results for the proportion of long term incentives in the total compensation. For salary and bonus, I find that a higher proportion has a negative influence on innovation input and output. After a sample split, I show that all findings related to compensation components only hold for firms in less innovative industries. In a subsequent small sample analysis, I characterize elements of golden parachute agreements and classify them in accordance to the protection they offer to CEOs. Subsequently, I find evidence that more innovative firms use more and further developed agreements. I conclude that such protections for failure can influence the motivation of executives to innovate. | pt_PT |
| dc.identifier.tid | 201172143 | |
| dc.identifier.uri | http://hdl.handle.net/10400.14/18792 | |
| dc.language.iso | eng | pt_PT |
| dc.title | The influence of executive compensation on innovation | pt_PT |
| dc.type | master thesis | |
| dspace.entity.type | Publication | |
| rcaap.rights | openAccess | pt_PT |
| rcaap.type | masterThesis | pt_PT |
| thesis.degree.name | Mestrado em Gestão: Programa Internacional |