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Government awards to CEOs

Author

Listed:
  • François Belot

    (DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique)

  • Timothee Waxin

Abstract

This paper investigates the value and corporate governance consequences of government awards for a sample of French CEOs appointed to the national Order of the Legion ofHonor (Légion d'honneur). Short-term market reactions surrounding award announcements are significantly positive, whereas the valuation of firms with awarded CEOs is greater than that of (matched) firms with nonawarded CEOs. We explore the channels through which government awards create value and find evidence that they provide awarded CEOs and their firms with increased political access. We also observe that government awards are associated with better corporate governance in that awarded CEOs are more likely to be fired for poor performance. The negative effects that have been documented for media awards and are associated with CEOs' superstar status do not seem to apply to state awards.

Suggested Citation

  • François Belot & Timothee Waxin, 2024. "Government awards to CEOs," Post-Print hal-04659614, HAL.
    • Handle: RePEc:hal:journl:hal-04659614
    DOI: 10.1111/jbfa.12813
    Note: View the original document on HAL open archive server: https://hal.science/hal-04659614
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    References listed on IDEAS

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    Keywords

    CEO compensation; CEO outside directorships; CEO turnover; corporate governance; corporate performance; government awards; political connections;
    All these keywords.

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