Sorting Effects of Broad-Based Equity Compensation
利用员工层面数据，研究广泛股权薪酬如何通过员工对管理层信任度的感知来筛选员工，发现股权计划增强了管理层可信度与离职意愿之间的关联，解释了其提升企业绩效的机制。
We examine the sorting role of broad-based equity pay using detailed employee-level data. We propose trust in management as an important characteristic over which equity pay sorts employees, as such pay typically leaves employees with concentrated positions in employer stock and therefore more exposed to the outcomes of management’s actions. Consistent with this conjecture, we find that the relation between employees’ perceptions of management’s credibility and voluntary turnover intentions is significantly stronger in the presence of a broad-based equity plan. Our findings provide insight into how broad-based equity pay can improve firm performance despite theoretical challenges regarding its incentive effects. This paper was accepted by Suraj Srinivasan, accounting. Funding: M. Vance acknowledges financial support from fellowships received through the Institute for the Study of Employee Ownership and Profit Sharing at Rutgers University. Supplemental Material: The data files and online appendix are available at https://doi.org/10.1287/mnsc.2022.4524 .