|
|
Executive Compensation in Firms Producing Addictive Goods
Janský, Michael ; Novák, Jiří (advisor) ; Babin, Adrian (referee)
Charles University in Prague Faculty of Social Sciences Institute of Economic Studies Title Page MASTER'S THESIS Executive Compensation in Firms Producing Addictive Goods Author: Bc. Michael Janský Supervisor: Jiří Novák, M.Sc., Ph.D. Academic Year: 2014/2015 Abstract This thesis investigates executive compensation, turnover and migration patterns in firms that produce addictive goods (tobacco, alcohol, and gambling). Previous research has identified costs associated with the production of harmful goods specific to these industries. Consistent with this stream of research, I find increased executive compensation in tobacco, alcohol, and gambling firms. This finding seems to be driven by industry specific characteristics, rather than by executives' traits or by the 'traditional' determinants of executive compensation. Executive migration patterns and the effect of job change on compensation indicate that the higher compensation is not caused by executives' attributes well suited for these firms' specific needs, by executives' contribution to value-creating activities, or by other executive-specific characteristics. Rather, the higher compensation seems to reflect a payment to executives for having to bear society's aversion to or displeasure with these harmful goods, and those who produce them. JEL...
|
guest ::
