Competing with Superstars

Item Type Journal paper
Abstract

This paper investigates the effect of superstar CEOs on their competitors. Exploiting shocks to CEO status due to prestigious media awards, we document a significant positive stock market performance of competitors of superstar CEOs subsequent to the award. The effect is more pronounced for competitors who have not received an Award themselves, who are geographically close to an award winner and who are not entrenched. We observe an increase in risk-taking, operating performance and Innovation activity of superstars' competitors as potential channels for this positive performance. Our results suggest a positive overall welfare impact of corporate superstar systems due to the incentivizing effect on superstars' competitors.

Authors Ammann, Manuel; Ho, Philipp & Oesch, David
Journal or Publication Title Management Science
Language English
Keywords Competition; Firm performance; Risk-taking; Innovation; Awards, CEO
Subjects business studies
finance
Institute/School EMBA - Executive MBA
s/bf - Swiss Institute of Banking and Finance
SoF - School of Finance
HSG Classification contribution to scientific community
HSG Profile Area None
Refereed No
Date 18 April 2016
Publisher INFORMS
Place of Publication Maryland, US
Series Name School of Finance Working Paper Series
Volume 62
Number 10
Page Range 2842-2858
ISSN 0025-1909
Publisher DOI 10.1287/mnsc.2015.2266
Depositing User Prof. Dr. Manuel Ammann
Date Deposited 04 Jun 2015 14:24
Last Modified 10 Nov 2017 11:01
URI: https://www.alexandria.unisg.ch/publications/241426

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Citation

Ammann, Manuel; Ho, Philipp & Oesch, David (2016) Competing with Superstars. Management Science, 62 (10). 2842-2858. ISSN 0025-1909

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https://www.alexandria.unisg.ch/id/eprint/241426
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