Corpus ID: 197679245

Industry Tournament Incentives and the Strategic Value of Corporate Liquidity

  title={Industry Tournament Incentives and the Strategic Value of Corporate Liquidity},
  author={J. Huang and B. Jain and Omesh Kini},
  • J. Huang, B. Jain, Omesh Kini
  • Published 2015
  • We evaluate the link between CEO industry tournament incentives (ITI) and the strategic value of corporate liquidity. We find that ITI increase the level and marginal value of cash holdings even after conducting several tests to control for endogeneity. Additionally, for firms with excess cash, higher ITI lead to increased R&D expenditures and spending on focused acquisitions, and reduced shareholder payouts. Furthermore, ITI strengthen the relation between firm cash holdings and market share… CONTINUE READING
    1 Citations

    Figures and Tables from this paper

    Local Tournament Incentives and Firm Risk
    • 3
    • PDF


    Firm Cash Holdings and CEO Inside Debt
    • 75
    • Highly Influential
    • PDF
    Corporate Financial Policy and the Value of Cash
    • 1,125
    • Highly Influential
    • PDF
    Managerial Incentives and Risk-taking
    • 1,804
    • PDF
    Determinants of Corporate Cash Policy: Insights from Private Firms
    • 343
    • Highly Influential
    • PDF
    Debt Financing: Does it Boost or Hurt Firm Performance in Product Markets?
    • 354
    • Highly Influential
    Corporate governance and the value of cash holdings.
    • 1,356
    • Highly Influential
    • PDF
    Strategic Mutual Fund Tournaments
    • 11
    • PDF
    CEO Compensation and Bank Mergers
    • 398
    • PDF
    What Matters in Corporate Governance?
    • 1,808
    • PDF