Is Red or Blue More Likely to Make a Fat King and Lean Beggar? The Effect of CEO Political Ideology

Research output: Chapters, Conference Papers, Creative and Literary Works (RGC: 12, 32, 41, 45)32_Refereed conference paper (with ISBN/ISSN)peer-review

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Detail(s)

Original languageEnglish
Title of host publicationAcademy of Management Proceedings
EditorsGuclu Atinc
PublisherAcademy of Management
Publication statusPublished - Aug 2019

Publication series

NameAcademy of Management Proceedings
Volume2019
ISSN (Print)0065-0668
ISSN (Electronic)2151-6561

Conference

Title79th Annual Meeting of the Academy of Management (AOM 2019)
PlaceUnited States
CityBoston
Period9 - 13 August 2019

Abstract

While the issue of CEO-worker pay gap has received growing attention, few studies consider whether CEO psychological traits such as political ideology may be a potential determinant. In this study, we propose that whether a CEO is liberal or conservative will have a decisive impact on CEO-worker pay gap. Specifically, we contend that a liberal CEO would prefer a relatively smaller CEO-worker pay gap, but a conservative CEO would be less likely to do so. Building on this central argument, we also examine boundary conditions that may shape the proposed effect including labor productivity and market uncertainty. Analyses of a sample of U.S. public firms during 2002-2010 lend support to our thesis. Our study contributes to the literature by suggesting that CEO political ideology is a critical factor in influencing intrafirm pay inequality.

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Research Unit(s) information for this publication is provided by the author(s) concerned.

Citation Format(s)

Is Red or Blue More Likely to Make a Fat King and Lean Beggar? The Effect of CEO Political Ideology. / Weng, David; Yang, Haibin.

Academy of Management Proceedings. ed. / Guclu Atinc. Academy of Management, 2019. (Academy of Management Proceedings; Vol. 2019).

Research output: Chapters, Conference Papers, Creative and Literary Works (RGC: 12, 32, 41, 45)32_Refereed conference paper (with ISBN/ISSN)peer-review