TY - JOUR
AU - Yasai-Ardekani, Masoud
AB - This article presents statistical methods for identifying outcomes in a given sample that can be inferred as plausible extreme and whether the extremes on two variables are associated. Applications to CEO pay and performance of 50 top-paid CEOs illustrate these methodologies. Thresholds between extremes and nonextremes are found using high probability intervals under the probability distributions that govern sampling variations of the sample extremes. A Bayesian approach is used to compute odds on the association between the extremes of the two variables. The extreme pay—performance analysis of 50 top-paid CEOs reveals astonishing odds in favor of a company being extreme high only on one of the two versus on both variables. The result is considered decisive evidence for a negative association between extreme on CEO pay and extreme on performance among such top-paid CEOs. By contrast, analysis of the nonextreme CEOs yielded no evidence of any association between CEO pay and performance.
TI - Identifying and Analyzing Extremes: Illustrated by CEOs’ Pay and Performance
JF - Organizational Research Methods
DO - 10.1177/1094428109342899
DA - 2010-10-01
UR - https://www.deepdyve.com/lp/sage/identifying-and-analyzing-extremes-illustrated-by-ceos-pay-and-OsMwpmZkhu
SP - 782
EP - 805
VL - 13
IS - 4
DP - DeepDyve
ER -