TY  - JOUR
AB  - Purpose This paper aims to examine how Chief Executive Officer (CEO) power affects firm-level labor productivity.Design/methodology/approach The authors rely on regression analysis to examine the relation between CEO power and labor productivity.Findings Following prior research (i.e. the sequential rank order tournament theory), the authors predict that powerful CEOs lead to high labor productivity. They find a significant and positive relationship between CEO power and labor productivity. They further decompose labor productivity into labor efficiency and labor cost components and find a positive (negative) relationship between CEO power and labor efficiency (cost) component, suggesting that more powerful CEOs better manage labor efficiency and control labor cost. The results are also robust to various additional tests.Originality/value This study contributes to two streams of research: the CEO power literature in finance and the labor productivity and cost literature in accounting. To the best of the authors’ knowledge, it is the first study that performs a direct empirical test on the relation between CEO power and labor productivity.
VL  - 32
IS  - 2
SN  - 1030-9616
DO  - 10.1108/ARJ-05-2016-0056
UR  - https://doi.org/10.1108/ARJ-05-2016-0056
AU  - Breit Emily
AU  - Song Xuehu (Jason)
AU  - Sun Li
AU  - Zhang Joseph
PY  - 2019
Y1  - 2019/01/01
TI  - CEO power and labor productivity
T2  - Accounting Research Journal
PB  - Emerald Publishing Limited
SP  - 148
EP  - 165
Y2  - 2024/04/25
ER  -