The burden of celebrity: The impact of CEO certification contests on CEO pay and performance

Academy of Management Journal

Volumn 49, Issue 4, 2006, Pages 643-660

  Wade, James B ^a   Porac, Joseph F ^b   Pollock, Timothy G ^c   Graffin, Scott D ^d  

^a RUTGERS UNIVERSITY   (United States)

^b NEW YORK UNIVERSITY   (United States)

^c PENNSYLVANIA STATE UNIVERSITY   (United States)

^d UNIVERSITY OF GEORGIA   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 33749030749     PISSN: 00014273     EISSN: None     Source Type: Journal    
DOI: 10.5465/AMJ.2006.22083021     Document Type: Review

References (64)

1. Alford, A. W. 1992. The effect of the set of comparable firms on the accuracy of the price-earnings valuation method. Journal of Accounting Research, 30: 94-108.
2. Antle, R., & Smith. A. 1986. An empirical investigation of the relative performance evaluation of corporate executives. Journal of Accounting Research, 24:1-39.
3. Arellano, M., & Bond, S. 1991. Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. Review of Economic Studies, 58: 277-297.
4. Arthur, M. M., & Cook, A. 2004. Taking stock of workfamily initiatives: How announcement of "family friendly" human resource decision affects shareholder value. Industrial and Labor Relations Review, 57: 599-613.
5. Barkema, H. G., & Gomez-Mejia, L. R. 1998. Managerial compensation and firm performance: A general research framework. Academy of Management Journal, 41: 135-145.
6. Bebchuk, L., & Fried, J. 2004. Pay without performance: The unfulfilled promise of executive compensation. Cambridge, MA: Harvard University Press.
7. Bertrand, M., & Schoar, A. 2003. Managing with style: The effect of managers on firm policies. Quarterly Journal of Economics, 118: 1169-1208.
8. Bettman, J. R., & Weitz, B. A. 1983. Attributions in the board room: Causal reasoning in corporate annual reports. Administrative Science Quarterly, 28:165-183.
9. Bok, D. 1993. The cost of talent: How executives and professionals are paid and how it affects America. New York: Free Press.
10. Brown, B., & Perry, S. 1994. Removing the financial performance halo from Fortunes "most admired companies." Academy of Management Journal, 37:1347-1364.
11. Brown, S. J., & Warner, J. B. 1985. Using daily stock returns: The case of event studies. Journal of Financial Economics, 14: 3-31.
12. Cannella, A. A., & Lubatkin, M. 1993. Succession as a sociopolitical process: Internal impediments to outsider selection. Academy of Management Journal, 36: 763-793.
13. Chen, C. C., & Meindl, J. R. 1991. The construction of leadership images in the popular press: The case of Donald Burr and People Express. Administrative Science Quarterly, 36: 525-551.
14. Clarke, R. N. 1989. SICs as delineators of economic markets. Journal of Business, 62: 17-31.
15. Crystal, G. 1991. In search of excess. New York: Norton.
16. Dalton, G. W., Barnes, L. B., & Zaleznik, A. 1968. The distribution of authority in formal organizations. Boston: Harvard University Press.
17. Deephouse, D. L. 2000. Media reputation as a strategic resource: An integration of mass communication and resource-based theories. Journal of Management, 6: 1091-1112.
18. Elsbach, K. D., & Kramer, R. M. 1996. Members' responses to organizational threats: Encountering and countering the Business Week rankings. Administrative Science Quarterly, 41: 442-476.
19. Fama, E. F. 1980. Agency problems, and the theory of the firm. Journal of Political Economy, 88: 288-307.
20. Financial World. 1975. CEO of the year. March 26: 16-32.
21. Finkelstein, S. 1992. Power in top management teams: Dimensions, measurement, and validation. Academy of Management Journal, 35: 505-538.
22. Fombrun, C. J. 1996. Reputation: Realizing value from the corporate image. Boston: Harvard Business School Press.
23. Fombrun, C. J., & Shanley, M. 1990. What's in a name: Reputation building and corporate strategy. Academy of Management Journal, 33: 233-258.
24. Forbes. 1990. Would Adam Smith pay them so much? May 28: 210-214.
25. Frank, R. H., & Cook, P. J. 1995. The winner-take-all society. New York: Penguin Books.
26. Gerhart, B., & Rynes, S. L. 2003. Compensation: Theory, evidence, and strategic implications. Thousand Oaks, CA: Sage.
27. Gibbons, R., & Murphy, K. 1990. Relative performance evaluation for chief executive officers. Industrial and Labor Relations Review, 43: 30s-51s.
28. Ginzel, L., Kramer, R., & Sutton, R. 1992. Organizational impression management as a reciprocal influence process: The neglected role of the organizational audience. In B. M. Staw & L. L. Cummings (Eds.), Research in organizational behavior, vol. 15: 227-266. Greenwich, CT: JAI Press.
29. Greene, W. H. 1993. Econometric analysis (2nd ed.). New York: MacMillan.
30. Hall, R. 1992. The strategic analysis of intangible resources. Strategic Management Journal, 13: 135-144.
31. Hausman, J. A. 1978. Specification tests in econometrics. Econometrica, 46: 1251-1272.
32. Hayward, M. L. A., & Hambrick, D. C. 1997. Explaining the premiums paid for large acquisitions: Evidence of CEO hubris. Administrative Science Quarterly, 42: 103-127.
33. Hayward, M. L. A., Rindova, V., & Pollock, T. 2004. Believing one's own press: The causes and consequences of CEO celebrity. Strategic Management Journal, 25: 637-653.
34. Holmstrom, B. 1982. Managerial incentive problems - A dynamic perspective. In Essays in economics and management in honor of Lars Wahlbeck: 209-230. Helsinki: School of Economics.
35. Huber, P. J. 1967. The behavior of maximum likelihood estimates under non-standard conditions. Proceedings of the 5th Berkeley Symposium on Mathematical Statistics and Probability: 221-233. Berkeley: University of California Press.
36. Jensen, M. C., & Meckling, W. H. 1976. Theory of the firm: Managerial behavior, agency costs, and ownership structure. Journal of Financial Economics, 3: 305-360.
37. Johnson, J. L., Ellstrand, A. E., Daily, C. M., & Dalton, D. R. 2005. Board reputation and stockholder wealth: The influence of the financial press. Strategic Management Journal, 26: 461-471.
38. Khurana, R. 2002. Searching for a corporate savior: The irrational quest for charismatic CEOs. Princeton, NJ: Princeton University Press.
39. Lieberson, S., & O'Connor, J. F. 1972. Leadership and organizational performance: A study of large corporations. American Sociological Review, 37: 117-130.
40. MacKinlay, A. C. 1997. Event studies in economics and finance. Journal of Economic Literature, 35: 13-39.
41. Malmendier, U., & Tate, G. 2005. Does overconfidence affect corporate investment? CEO overconfidence measures revisted. European Financial Management, 11: 649-659.
42. March, J. G. 1984. Notes on ambiguity and executive compensation. Scandinavian Journal of Management Studies, 1(August): 53-64.
43. McWilliams, A., & Siegel, D. 1997. Event studies in management research: Theoretical and empirical issues. Academy of Management Journal, 40: 626-657.
44. Meindl, J. R., Ehrlich, S. B., & Dukerich, J. M. 1985. The romance of leadership. Administrative Science Quarterly, 30: 78-102.
45. Merton, R. K. 1968. Social theory and social structure. New York: Free Press.
46. Mintzberg, H., Raisinghani, D., & Thêorét, A. 1976. The structure of unstructured decision processes. Administrative Science Quarterly, 21: 246-275.
47. Pfeffer, J. 1981. Management as symbolic action: The creation and maintenance of organizational paradigms. In L. L. Cummings & B. M. Staw (Eds.), Research in organizational behavior: 1-52. Greenwich, CT: JAI Press.
48. Podolny, J. M. 1993. A status-based model of market competition. American Journal of Sociology, 98: 829-872.
49. Pollock, T. G., & Rindova, V. P. 2003. Media legitimation effects in the market for initial public offerings. Academy of Management Journal, 46: 631-642.
50. Porac, J. F., Wade, J. B., & Pollock, T. G. 1999. Industry categorizations and the politics of the comparable firm in CEO compensation. Administrative Science Quarterly, 44: 112-144.
51. Rao, H. 1994. The social construction of reputation: Certification contests, legitimation, and the survival of organizations in the American auto industry, 1895-1912. Strategic Management Journal (winter special issue), 15: 29-44.
52. Rao, H., Greve, H. R., & Davis, G. F. 2001. Fool's gold: Social proof in the initiation and abandonment of coverage by Wall Street analysts. Administrative Science Quarterly, 46: 502-526.
53. Salancik, G. R., & Meindl, J. R. 1984. Corporate attributions as strategic illusions of management control. Administrative Science Quarterly, 29: 238-254.
54. Salancik, G. R., & Pfeffer, J. 1977. Who gets power-And how they hold on to it. Organizational Dynamics, 5(3): 3-21.
55. Sanders, W. G., & Boivie, S. 2004. Sorting things out: Valuation of new firms in uncertain markets. Strategic Management Journal, 25: 167-186.
56. Scott, W. R. 1994 Institutional analysis: Variance and process theory approaches. In W. R. Scott, J. R. Meyer, and associates (Eds.), Institutional environments and organizations: Structural complexity and individualism: 81-99. San Francisco: Sage.
57. Singh, J., Tucker, D., & House, R. 1986. Organizational legitimacy and the liability of newness. Administrative Science Quarterly, 31: 171-193.
58. Teitelman, R. S. 1996. What's driving return on equity. Fortune, April 29: 271-276.
59. Tosi, H., & Gomez-Mejia, L. 1989. The decoupling of CEO pay and performance: An agency theory perspective. Administrative Science Quarterly, 34: 169-189.
60. Wade, J. B., Porac, J. F., & Pollock, T. G. 1997. Worth, words and the justification of executive pay. Journal of Organizational Behavior, 18: 641-664.
61. Worrell, D. L., Davidson, W. N., & Glascock, J. L. 1993. Stockholder reactions to departures and appointments of key executives attributable to firings. Academy of Management Journal, 36: 387-401.
62. White, H. 1982. Maximum likelihood estimation of misspecified models. Econometrica, 50: 1-25.
63. Wiley, M., & Zald, M. 1968. The growth and transformation of educational accrediting agencies: An exploratory study of the social control of institutions. Sociology of Education, 41: 36-56.
64. Wilson, R. 1985. Reputations in games and markets. In A. E. Roth (Ed.), Game-theoretic models of bargaining: 27-62. London: Cambridge University Press.