{"id":"https://openalex.org/W4229458027","doi":"https://doi.org/10.1017/s0022109022000060","title":"Relative Versus Absolute Performance Evaluation and CEO Decision-Making","display_name":"Relative Versus Absolute Performance Evaluation and CEO Decision-Making","publication_year":2022,"publication_date":"2022-05-10","ids":{"openalex":"https://openalex.org/W4229458027","doi":"https://doi.org/10.1017/s0022109022000060"},"language":"en","primary_location":{"id":"doi:10.1017/s0022109022000060","doi":"https://doi.org/10.1017/s0022109022000060","is_oa":true,"landing_page_url":"https://doi.org/10.1017/s0022109022000060","pdf_url":"https://www.cambridge.org/core/services/aop-cambridge-core/content/view/057A850D728ABE4BFF4C63DA5B6A9FB2/S0022109022000060a.pdf/div-class-title-relative-versus-absolute-performance-evaluation-and-ceo-decision-making-div.pdf","source":{"id":"https://openalex.org/S193228710","display_name":"Journal of Financial and Quantitative Analysis","issn_l":"0022-1090","issn":["0022-1090","1756-6916"],"is_oa":false,"is_in_doaj":false,"is_core":true,"listed_in":["abdc-a-star","anvur-class-a","anvur-scientific","cwts-core","erih-plus","fnege-1","ft50","jufo-3","norway-2","poland-140","russia-white-list-1","vabb-shw"],"host_organization":"https://openalex.org/P4310311721","host_organization_name":"Cambridge University Press","host_organization_lineage":["https://openalex.org/P4310311721","https://openalex.org/P4310311702"],"host_organization_lineage_names":["Cambridge University Press","University of Cambridge"],"type":"journal"},"license":"cc-by","license_id":"https://openalex.org/licenses/cc-by","version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"Journal of Financial and Quantitative Analysis","raw_type":"journal-article"},"volume":null,"type":"article","indexed_in":["crossref"],"open_access":{"is_oa":true,"oa_status":"hybrid","oa_url":"https://www.cambridge.org/core/services/aop-cambridge-core/content/view/057A850D728ABE4BFF4C63DA5B6A9FB2/S0022109022000060a.pdf/div-class-title-relative-versus-absolute-performance-evaluation-and-ceo-decision-making-div.pdf","any_repository_has_fulltext":false},"authorships":[{"author_position":"first","author":{"id":"https://openalex.org/A5018009542","display_name":"Karen Hopper Wruck","orcid":"https://orcid.org/0000-0002-8025-3328","observed_orcids":["https://orcid.org/0000-0002-8025-3328"]},"institutions":[{"id":"https://openalex.org/I52357470","display_name":"The Ohio State University","ror":"https://ror.org/00rs6vg23","country_code":"US","type":"education","lineage":["https://openalex.org/I52357470"]}],"countries":["US"],"is_corresponding":true,"raw_author_name":"Karen H. Wruck","raw_affiliation_strings":["The Ohio State University Fisher College of Business"],"raw_orcid":"https://orcid.org/0000-0002-8025-3328","affiliations":[{"raw_affiliation_string":"The Ohio State University Fisher College of Business","institution_ids":["https://openalex.org/I52357470"]}]},{"author_position":"last","author":{"id":"https://openalex.org/A5040375419","display_name":"Yilin Wu","orcid":"https://orcid.org/0000-0002-4994-3822","observed_orcids":["https://orcid.org/0000-0002-4994-3822"]},"institutions":[{"id":"https://openalex.org/I16733864","display_name":"National Taiwan University","ror":"https://ror.org/05bqach95","country_code":"TW","type":"education","lineage":["https://openalex.org/I16733864"]}],"countries":["TW"],"is_corresponding":false,"raw_author_name":"YiLin Wu","raw_affiliation_strings":["National Taiwan University, College of Social Sciences, Department of Economics"],"raw_orcid":null,"affiliations":[{"raw_affiliation_string":"National Taiwan University, College of Social Sciences, Department of Economics","institution_ids":["https://openalex.org/I16733864"]}]}],"institutions":[],"countries_distinct_count":2,"institutions_distinct_count":2,"corresponding_author_ids":["https://openalex.org/A5018009542"],"corresponding_institution_ids":["https://openalex.org/I52357470"],"apc_list":{"value":3255,"currency":"USD","value_usd":3255},"apc_paid":{"value":3255,"currency":"USD","value_usd":3255},"fwci":5.0114,"has_fulltext":true,"cited_by_count":16,"citation_normalized_percentile":{"value":0.95005719,"is_in_top_1_percent":false,"is_in_top_10_percent":true},"cited_by_percentile_year":{"min":93,"max":99},"biblio":{"volume":"57","issue":"7","first_page":"2591","last_page":"2626"},"is_retracted":false,"is_paratext":false,"is_xpac":false,"primary_topic":{"id":"https://openalex.org/T10019","display_name":"Corporate Finance and Governance","score":0.9932000041007996,"subfield":{"id":"https://openalex.org/subfields/1402","display_name":"Accounting"},"field":{"id":"https://openalex.org/fields/14","display_name":"Business, Management and Accounting"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},"topics":[{"id":"https://openalex.org/T10019","display_name":"Corporate Finance and Governance","score":0.9932000041007996,"subfield":{"id":"https://openalex.org/subfields/1402","display_name":"Accounting"},"field":{"id":"https://openalex.org/fields/14","display_name":"Business, Management and Accounting"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T10797","display_name":"Accounting and Organizational Management","score":0.003100000089034438,"subfield":{"id":"https://openalex.org/subfields/1404","display_name":"Management Information Systems"},"field":{"id":"https://openalex.org/fields/14","display_name":"Business, Management and Accounting"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T10081","display_name":"Auditing, Earnings Management, Governance","score":0.00139999995008111,"subfield":{"id":"https://openalex.org/subfields/1402","display_name":"Accounting"},"field":{"id":"https://openalex.org/fields/14","display_name":"Business, Management and Accounting"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}}],"keywords":[{"id":"https://openalex.org/keywords/relative-performance-evaluation","display_name":"relative performance evaluation","score":0.9800000190734863},{"id":"https://openalex.org/keywords/ceo-decision-making","display_name":"CEO decision-making","score":0.8270000219345093},{"id":"https://openalex.org/keywords/pay-for-performance","display_name":"performance-based pay","score":0.8429999947547913},{"id":"https://openalex.org/keywords/executive-risk-taking","display_name":"executive risk-taking","score":0.7239999771118164},{"id":"https://openalex.org/keywords/idiosyncratic-risk","display_name":"idiosyncratic risk","score":0.9660000205039978},{"id":"https://openalex.org/keywords/operational-policies","display_name":"operational policies","score":0.7260000109672546},{"id":"https://openalex.org/keywords/financial-policy","display_name":"financial policy","score":0.6290000081062317},{"id":"https://openalex.org/keywords/industry-norms","display_name":"industry norms","score":0.4099999964237213}],"concepts":[{"id":"https://openalex.org/C29122968","wikidata":"https://www.wikidata.org/wiki/Q1414816","display_name":"Incentive","level":2,"score":0.7222883701324463},{"id":"https://openalex.org/C151392489","wikidata":"https://www.wikidata.org/wiki/Q5419946","display_name":"Executive compensation","level":3,"score":0.6254838705062866},{"id":"https://openalex.org/C204036174","wikidata":"https://www.wikidata.org/wiki/Q909380","display_name":"Stock (firearms)","level":2,"score":0.5760629773139954},{"id":"https://openalex.org/C3017619653","wikidata":"https://www.wikidata.org/wiki/Q187860","display_name":"Stock options","level":2,"score":0.5615099668502808},{"id":"https://openalex.org/C80212096","wikidata":"https://www.wikidata.org/wiki/Q1975416","display_name":"Systematic risk","level":2,"score":0.5609099268913269},{"id":"https://openalex.org/C144133560","wikidata":"https://www.wikidata.org/wiki/Q4830453","display_name":"Business","level":0,"score":0.5449508428573608},{"id":"https://openalex.org/C2778865806","wikidata":"https://www.wikidata.org/wiki/Q6060850","display_name":"Investment decisions","level":3,"score":0.5011897087097168},{"id":"https://openalex.org/C2776035688","wikidata":"https://www.wikidata.org/wiki/Q1606558","display_name":"Affect (linguistics)","level":2,"score":0.4986720085144043},{"id":"https://openalex.org/C30755413","wikidata":"https://www.wikidata.org/wiki/Q1245402","display_name":"Risk\u2013return spectrum","level":3,"score":0.4843345880508423},{"id":"https://openalex.org/C2780023022","wikidata":"https://www.wikidata.org/wiki/Q1338171","display_name":"Compensation (psychology)","level":2,"score":0.4447065591812134},{"id":"https://openalex.org/C162118730","wikidata":"https://www.wikidata.org/wiki/Q1128453","display_name":"Actuarial science","level":1,"score":0.4133619964122772},{"id":"https://openalex.org/C10138342","wikidata":"https://www.wikidata.org/wiki/Q43015","display_name":"Finance","level":1,"score":0.3261551260948181},{"id":"https://openalex.org/C121955636","wikidata":"https://www.wikidata.org/wiki/Q4116214","display_name":"Accounting","level":1,"score":0.3219836354255676},{"id":"https://openalex.org/C162324750","wikidata":"https://www.wikidata.org/wiki/Q8134","display_name":"Economics","level":0,"score":0.2960324287414551},{"id":"https://openalex.org/C175444787","wikidata":"https://www.wikidata.org/wiki/Q39072","display_name":"Microeconomics","level":1,"score":0.265436589717865},{"id":"https://openalex.org/C109574028","wikidata":"https://www.wikidata.org/wiki/Q647525","display_name":"Behavioral economics","level":2,"score":0.09062045812606812},{"id":"https://openalex.org/C15744967","wikidata":"https://www.wikidata.org/wiki/Q9418","display_name":"Psychology","level":0,"score":0.06955450773239136},{"id":"https://openalex.org/C46312422","wikidata":"https://www.wikidata.org/wiki/Q11024","display_name":"Communication","level":1,"score":0.0},{"id":"https://openalex.org/C127413603","wikidata":"https://www.wikidata.org/wiki/Q11023","display_name":"Engineering","level":0,"score":0.0},{"id":"https://openalex.org/C2780821815","wikidata":"https://www.wikidata.org/wiki/Q5340806","display_name":"Portfolio","level":2,"score":0.0},{"id":"https://openalex.org/C11171543","wikidata":"https://www.wikidata.org/wiki/Q41630","display_name":"Psychoanalysis","level":1,"score":0.0},{"id":"https://openalex.org/C78519656","wikidata":"https://www.wikidata.org/wiki/Q101333","display_name":"Mechanical engineering","level":1,"score":0.0}],"mesh":[],"locations_count":2,"locations":[{"id":"doi:10.1017/s0022109022000060","doi":"https://doi.org/10.1017/s0022109022000060","is_oa":true,"landing_page_url":"https://doi.org/10.1017/s0022109022000060","pdf_url":"https://www.cambridge.org/core/services/aop-cambridge-core/content/view/057A850D728ABE4BFF4C63DA5B6A9FB2/S0022109022000060a.pdf/div-class-title-relative-versus-absolute-performance-evaluation-and-ceo-decision-making-div.pdf","source":{"id":"https://openalex.org/S193228710","display_name":"Journal of Financial and Quantitative Analysis","issn_l":"0022-1090","issn":["0022-1090","1756-6916"],"is_oa":false,"is_in_doaj":false,"is_core":true,"listed_in":["abdc-a-star","anvur-class-a","anvur-scientific","cwts-core","erih-plus","fnege-1","ft50","jufo-3","norway-2","poland-140","russia-white-list-1","vabb-shw"],"host_organization":"https://openalex.org/P4310311721","host_organization_name":"Cambridge University Press","host_organization_lineage":["https://openalex.org/P4310311721","https://openalex.org/P4310311702"],"host_organization_lineage_names":["Cambridge University Press","University of Cambridge"],"type":"journal"},"license":"cc-by","license_id":"https://openalex.org/licenses/cc-by","version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"Journal of Financial and Quantitative Analysis","raw_type":"journal-article"},{"id":"pmh:oai:RePEc:cup:jfinqa:v:57:y:2022:i:7:p:2591-2626_4","doi":null,"is_oa":false,"landing_page_url":"https://www.cambridge.org/core/product/identifier/S0022109022000060/type/journal_article","pdf_url":null,"source":{"id":"https://openalex.org/S4306401271","display_name":"RePEc: Research Papers in Economics","issn_l":null,"issn":null,"is_oa":false,"is_in_doaj":false,"is_core":false,"listed_in":[],"host_organization":"https://openalex.org/I77793887","host_organization_name":"Federal Reserve Bank of St. Louis","host_organization_lineage":["https://openalex.org/I77793887"],"host_organization_lineage_names":[],"type":"repository"},"license":null,"license_id":null,"version":"submittedVersion","is_accepted":false,"is_published":false,"raw_source_name":null,"raw_type":"article"}],"best_oa_location":{"id":"doi:10.1017/s0022109022000060","doi":"https://doi.org/10.1017/s0022109022000060","is_oa":true,"landing_page_url":"https://doi.org/10.1017/s0022109022000060","pdf_url":"https://www.cambridge.org/core/services/aop-cambridge-core/content/view/057A850D728ABE4BFF4C63DA5B6A9FB2/S0022109022000060a.pdf/div-class-title-relative-versus-absolute-performance-evaluation-and-ceo-decision-making-div.pdf","source":{"id":"https://openalex.org/S193228710","display_name":"Journal of Financial and Quantitative Analysis","issn_l":"0022-1090","issn":["0022-1090","1756-6916"],"is_oa":false,"is_in_doaj":false,"is_core":true,"listed_in":["abdc-a-star","anvur-class-a","anvur-scientific","cwts-core","erih-plus","fnege-1","ft50","jufo-3","norway-2","poland-140","russia-white-list-1","vabb-shw"],"host_organization":"https://openalex.org/P4310311721","host_organization_name":"Cambridge University Press","host_organization_lineage":["https://openalex.org/P4310311721","https://openalex.org/P4310311702"],"host_organization_lineage_names":["Cambridge University Press","University of Cambridge"],"type":"journal"},"license":"cc-by","license_id":"https://openalex.org/licenses/cc-by","version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"Journal of Financial and Quantitative Analysis","raw_type":"journal-article"},"sustainable_development_goals":[],"study_designs":[],"awards":[],"funders":[],"has_content":{"grobid_xml":true,"pdf":true},"content_urls":{"pdf":"https://content.openalex.org/works/W4229458027.pdf","grobid_xml":"https://content.openalex.org/works/W4229458027.grobid-xml"},"referenced_works_count":57,"referenced_works":["https://openalex.org/W205057470","https://openalex.org/W1601555425","https://openalex.org/W1896038438","https://openalex.org/W1956285664","https://openalex.org/W1966586504","https://openalex.org/W1978918200","https://openalex.org/W1982307869","https://openalex.org/W2004463963","https://openalex.org/W2008301397","https://openalex.org/W2010449560","https://openalex.org/W2029747413","https://openalex.org/W2044296607","https://openalex.org/W2047134779","https://openalex.org/W2062519599","https://openalex.org/W2069763909","https://openalex.org/W2081865679","https://openalex.org/W2096874528","https://openalex.org/W2103835808","https://openalex.org/W2104545839","https://openalex.org/W2105973145","https://openalex.org/W2117130207","https://openalex.org/W2125585375","https://openalex.org/W2127257964","https://openalex.org/W2130052362","https://openalex.org/W2130100150","https://openalex.org/W2140369352","https://openalex.org/W2143674845","https://openalex.org/W2150718872","https://openalex.org/W2171374112","https://openalex.org/W2222178830","https://openalex.org/W2403099049","https://openalex.org/W2550496018","https://openalex.org/W2762780933","https://openalex.org/W2797018151","https://openalex.org/W2922450727","https://openalex.org/W3121133695","https://openalex.org/W3121404097","https://openalex.org/W3121454242","https://openalex.org/W3122088372","https://openalex.org/W3122251413","https://openalex.org/W3122526219","https://openalex.org/W3122717772","https://openalex.org/W3122843734","https://openalex.org/W3123062188","https://openalex.org/W3123123822","https://openalex.org/W3123492539","https://openalex.org/W3123554068","https://openalex.org/W3123879368","https://openalex.org/W3124023934","https://openalex.org/W3124059598","https://openalex.org/W3124241169","https://openalex.org/W3124416190","https://openalex.org/W3124497724","https://openalex.org/W3125175299","https://openalex.org/W3125301290","https://openalex.org/W3125450538","https://openalex.org/W3180225671"],"related_works":["https://openalex.org/W2765844196","https://openalex.org/W2111377054","https://openalex.org/W2407898728","https://openalex.org/W3123244677","https://openalex.org/W4411793728","https://openalex.org/W1956285664","https://openalex.org/W2184595276","https://openalex.org/W3010826618","https://openalex.org/W2163783304","https://openalex.org/W4213320856"],"abstract_inverted_index":{"Abstract":[0],"We":[1],"provide":[2,25],"new":[3],"evidence":[4],"on":[5],"how":[6],"performance-based":[7],"compensation":[8],"plans":[9,24,42],"affect":[10],"CEO":[11],"decision-making,":[12],"especially":[13],"risk-taking.":[14],"Our":[15],"main":[16],"finding":[17],"is":[18],"that":[19,32],"relative":[20],"performance":[21,36,39],"evaluation":[22,40],"(RPE)":[23],"incentives":[26],"for":[27,93],"CEOs":[28],"to":[29,49,69,95],"make":[30],"decisions":[31],"generate":[33],"more":[34,86],"idiosyncratic":[35,64,87],"outcomes;":[37],"absolute":[38],"(APE)":[41],"do":[43],"not.":[44],"After":[45],"switches":[46,68,94],"from":[47,82],"APE":[48],"RPE,":[50],"the":[51],"correlation":[52],"between":[53],"firm":[54,63],"stock":[55],"return":[56,60],"and":[57,62,79],"industry":[58,83],"index":[59],"falls":[61],"risk":[65],"increases.":[66],"Further,":[67],"RPE":[70],"are":[71,91],"followed":[72],"by":[73],"larger":[74],"deviations":[75],"in":[76],"financial,":[77],"investment,":[78],"operating":[80],"policies":[81],"norms":[84],"(i.e.,":[85],"strategies).":[88],"All":[89],"results":[90],"opposite":[92],"APE.":[96]},"counts_by_year":[{"year":2026,"cited_by_count":3},{"year":2025,"cited_by_count":6},{"year":2024,"cited_by_count":3},{"year":2023,"cited_by_count":2},{"year":2020,"cited_by_count":2}],"updated_date":"2026-11-03T10:50:19.383937","created_date":"2022-05-11T00:00:00"}