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Organization capital, tournament incentives and firm performance

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  • Boubaker, Sabri
  • Hasan, Mostafa Monzur
  • Habib, Ahsan

Abstract

This paper examines the relationship between organization capital and promotion-based tournament incentives. Using a sample of 33,618 publicly listed U.S. firm-year observations covering 1992–2020, the results show that firms with high levels of organization capital have relatively more promotion-based tournament incentives, and that tournament incentives in high organization capital firms improve firm value and operating performance.

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  • Boubaker, Sabri & Hasan, Mostafa Monzur & Habib, Ahsan, 2022. "Organization capital, tournament incentives and firm performance," Finance Research Letters, Elsevier, vol. 46(PB).
    • Handle: RePEc:eee:finlet:v:46:y:2022:i:pb:s1544612321004487
    DOI: 10.1016/j.frl.2021.102468
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