IDEAS home Printed from https://ideas.repec.org/p/zbw/zewdip/313010.html
   My bibliography  Save this paper

The effect of taxes on CEO performance

Author

Listed:
  • Arnemann, Laura
  • Buhlmann, Florian
  • Ruf, Martin
  • Voget, Johannes

Abstract

In this paper, we investigate the effect of higher personal income taxes on CEO and firm performance in publicly traded US firms. In response to higher taxes on compensation, CEOs are less likely to reach performance goals and spend more time working in boards outside of their firm. At the same time, firm performance drops before eventually recovering as investment projects with below average profitability are disregarded and due to adjustments in CEO compensation.

Suggested Citation

  • Arnemann, Laura & Buhlmann, Florian & Ruf, Martin & Voget, Johannes, 2025. "The effect of taxes on CEO performance," ZEW Discussion Papers 25-013, ZEW - Leibniz Centre for European Economic Research.
  • Handle: RePEc:zbw:zewdip:313010
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/313010/1/1919180664.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Executive Compensation; Personal Income Taxation; Firm Performance;
    All these keywords.

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation

    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:zbw:zewdip:313010. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/zemande.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.