A scaling perspective on the distribution of executive compensation

Thitithep Sitthiyot, Pornanong Budsaratragoon and Kanyarat Holasut

Physica A: Statistical Mechanics and its Applications, 2020, vol. 543, issue C

Abstract: We investigate scale invariance or self-similarity in the distribution of average executive compensation defined as total executive compensation for each company divided by the number of executives in that company. Using annual data on companies listed in the Stock Exchange of Thailand between 2002 and 2015, the average executive compensation is categorized into three groups according to time period, industry type, and company size. The results from estimating the Lorenz curve and the Kolmogorov–Smirnov test indicate that the distributions of average executive compensation are statistically scale invariance or self-similar across time period, industry type, and company size with p-values greater than 0.01 in all cases.

Keywords: Scale invariance; Self-similarity; Executive compensation distribution; Lorenz curve (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:543:y:2020:i:c:s0378437119319818

DOI: 10.1016/j.physa.2019.123556

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