IDEAS home Printed from https://ideas.repec.org/p/aim/wpaimx/2201.html
   My bibliography  Save this paper

The (Market) Value of State Honors

Author

Abstract

State awards to civilians are a widespread social phenomenon across space and time. This paper quantifies the impact of State awards given to Directors on the stock value of their firms. We link a comprehensive dataset of recipients of the Légion d'honneurthe most prestigious official award in France-over the 1995-2019 period to Board positions in French listed firms. We document large abnormal returns in the stocks of recipients' firms at the date of the award, suggesting that awards signal valuable access to policy-makers. This interpretation is corroborated by the absence of any market reaction for recipients who were already identified before award receipt as being close to the Government.

Suggested Citation

  • Stéphane Benveniste & Renaud Coulomb & Marc Sangnier, 2022. "The (Market) Value of State Honors," AMSE Working Papers 2201, Aix-Marseille School of Economics, France.
    • Handle: RePEc:aim:wpaimx:2201
    as

    Download full text from publisher

    File URL: https://www.amse-aixmarseille.fr/sites/default/files/working_papers/wp_2022_-_nr_01.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Michael Kosfeld & Susanne Neckermann, 2011. "Getting More Work for Nothing? Symbolic Awards and Worker Performance," American Economic Journal: Microeconomics, American Economic Association, vol. 3(3), pages 86-99, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Emmanuel Dechenaux & Dan Kovenock & Roman Sheremeta, 2015. "A survey of experimental research on contests, all-pay auctions and tournaments," Experimental Economics, Springer;Economic Science Association, vol. 18(4), pages 609-669, December.
    2. Robert (A.J.) Dur & Ola Kvaloy & Anja Schottner, 2018. "Non-Competitive Wage-Setting as a Cause of Unfriendly and Inefficient Leadership," Tinbergen Institute Discussion Papers 18-094/VII, Tinbergen Institute.
    3. Christiane Bradler & Susanne Neckermann, 2019. "The Magic of the Personal Touch: Field Experimental Evidence on Money and Appreciation as Gifts," Scandinavian Journal of Economics, Wiley Blackwell, vol. 121(3), pages 1189-1221, July.
    4. Gwen-Jiro Clochard & Guillaume Hollard & Julia Wirtz, 2022. "More effort or better technologies? On the effect of relative performance feedback," Bristol Economics Discussion Papers 22/767, School of Economics, University of Bristol, UK.
    5. Gebhardt, Beate & Hellstern, Laura, 2023. "Die Kraft von Awards. Umfrage unter Unternehmen und Vergabeinstitutionen in Deutschland 2023," Working Papers 338798, Universitaet Hohenheim, Institute of Agricultural Policy and Agricultural Markets.
    6. Johannesson Magnus & Östling Robert & Ranehill Eva, 2010. "The Effect of Competition on Physical Activity: A Randomized Trial," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-31, September.
    7. Sliwka, Dirk & Werner, Peter, 2016. "How Do Agents React to Dynamic Wage Increases? An Experimental Study," IZA Discussion Papers 9855, Institute of Labor Economics (IZA).
    8. Alain Cohn & Tobias Gesche & Michel André Maréchal, 2022. "Honesty in the Digital Age," Management Science, INFORMS, vol. 68(2), pages 827-845, February.
    9. Goerg, Sebastian J. & Himmler, Oliver & König, Tobias, 2024. "Norm violations and behavioral spillovers—Evidence from the lab and the field," European Economic Review, Elsevier, vol. 166(C).
    10. Marco Kleine & Sebastian Kube, 2015. "Communication and Trust in Principal-Team Relationships: Experimental Evidence," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2015_06, Max Planck Institute for Research on Collective Goods.
    11. Subhasish Dugar & Haimanti Bhattacharya, 2019. "Can Concerns for Social Status Mitigate the ‘Lemons Problem’? Experimental Evidence from the Indian Caste Hierarchy," Journal of South Asian Development, , vol. 14(2), pages 151-179, August.
    12. Delfgaauw, Josse & Dur, Robert & Non, Arjan & Verbeke, Willem, 2014. "Dynamic incentive effects of relative performance pay: A field experiment," Labour Economics, Elsevier, vol. 28(C), pages 1-13.
    13. Islam, Asadul & Kwon, Sungoh & Masood, Eema & Prakash, Nishith & Sabarwal, Shwetlena & Saraswat, Deepak, 2020. "When Goal-Setting Forges Ahead but Stops Short," IZA Discussion Papers 13188, Institute of Labor Economics (IZA).
    14. Mazyaki, Ali & van der Weele, Joël, 2019. "On esteem-based incentives," International Review of Law and Economics, Elsevier, vol. 60(C).
    15. Darin Christensen & Oeindrila Dube & Johannes Haushofer & Bilal Siddiqi & Maarten Voors, 2021. "Building Resilient Health Systems: Experimental Evidence from Sierra Leone and The 2014 Ebola Outbreak," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 136(2), pages 1145-1198.
    16. Maria Cotofan, 2019. "Learning from Praise: Evidence from a Field Experiment with Teachers," Tinbergen Institute Discussion Papers 19-082/V, Tinbergen Institute.
    17. Nair, Sujay & Abernethy, Margaret A. & Jiang, Yile (Anson) & Lillis, Anne M., 2024. "The interdependence between the choice of fixed-term professional workers and the control environment," Accounting, Organizations and Society, Elsevier, vol. 113(C).
    18. Bryson, Alex & Clark, Andrew E. & Freeman, Richard B. & Green, Colin P., 2016. "Share capitalism and worker wellbeing," Labour Economics, Elsevier, vol. 42(C), pages 151-158.
    19. Philipp Ager & Leonardo Bursztyn & Hans-Joachim Voth, 2016. "Killer Incentives: Status Competition and Pilot Performance during World War II," NBER Working Papers 22992, National Bureau of Economic Research, Inc.
    20. Jana Gallus & Bruno S. Frey, 2016. "Awards: A strategic management perspective," Strategic Management Journal, Wiley Blackwell, vol. 37(8), pages 1699-1714, August.

    More about this item

    Keywords

    Awards; State Honors; Symbolic Capital; Political Connections;
    All these keywords.

    JEL classification:

    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aim:wpaimx:2201. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Gregory Cornu (email available below). General contact details of provider: https://edirc.repec.org/data/amseafr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.