Starjournal Quotation Feichter, Christoph, Moers, Frank, Timmermans, Oscar. 2022. Relative Performance Evaluation and Competitive Aggressiveness. Journal of Accounting Research.




We examine the relation between incentive plans based on relative performance and competitive aggressiveness. Using data on executive incentive-compensation contracts in large U.S. firms, we find a positive association between competitive aggressiveness and peer group overlap—that is, the extent to which two firms select each other as peers in these incentive plans. Our findings indicate that managers of such firms take more frequent as well as more complex competitive actions, relative to managers evaluated on relative performance without peer group overlap. Moreover, we show that these competitive tactics are more pronounced when managers compete against: (1) peers with similar grant sizes, (2) peers on similar performance metrics, and (3) peers in the same industry. Collectively, our findings provide evidence on how widely used incentive-compensation practices relate to strategic firm decisions.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Journal of Accounting Research
Citation Index SSCI
WU Journalrating 2009 A+
Starjournal Y
Language English
Title Relative Performance Evaluation and Competitive Aggressiveness
Year 2022
Reviewed? Y
Open Access Y
Open Access Link


Feichter, Christoph (Details)
Moers, Frank (Maastricht University, Netherlands)
Timmermans, Oscar (London School of Economics, United Kingdom)
Institute for Strategy and Managerial Accounting (Grabner) (Details)
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