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Original Articles

Executive compensation and product market behaviour

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Pages 558-562 | Published online: 06 Oct 2014
 

Abstract

There is little empirical evidence on the effect of a CEO’s incentive compensation on the firm’s product market behaviour. This article reports that performance (risk)-based incentive compensation delta (vega) of a firm’s CEO positively affects its industry-adjusted sales growth (proxy for product market behaviour).

JEL Classification:

Notes

1 The variables used in regression analysis are in italics.

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