Industry Tournament Incentives and the Product-Market Benefits of Corporate Liquidity
研究发现CEO行业锦标赛激励会提高企业现金持有水平和边际价值，并促使企业利用超额现金获取市场份额，尤其在竞争激烈时效果更显著。
We evaluate the link between chief executive officer (CEO) industry tournament incentives (ITIs) and the product-market benefits of corporate liquidity. We find that ITIs increase the level and marginal value of cash holdings. Furthermore, ITIs strengthen the relation between excess cash and market-share gains, especially for firms that face significant competitive threats. Additionally, for firms with excess cash, higher ITIs lead to increased research and development (R&D) expenses, capital expenditures, and spending on focused acquisitions as well as reduced payouts. Overall, our findings suggest that ITIs increase the value of cash by incentivizing CEOs to deploy cash strategically to capture its product-market benefits.