In this paper, we examine the professional CEO compensation using a sample of “same caste/religion” and “not same caste/religion” professional CEOs from the largest 1,000 publicly listed firms in India from 2001-2009. We find caste/religion homophily influences CEO compensation. Unlike previous studies of caste/religion influences in corporate decisions in India that supported ‘information/trust’ advantages, our findings support homophily influences potentially driven by “taste-based” preferences. We provide evidence for a higher compensation for “not same caste/religion” CEOs, possibly an insurance against “taste-based” discrimination.
Nguyen Thi Thuy Ngan, Le Thanh Hoang Nhat, Nguyen Ngo Vi, Ninh Thi Thanh Van, Nguyen Thi Hoang, Duong Van Anh, Phan Trieu, Nguyen Phu Huong Lan, Nguyen Hoan Phu, Nguyễn Văn Vĩnh Châu, David G. Lalloo, William Hope, Justin Beardsley, Sir Nicholas White, Ronald B. Geskus, Guy Thwaites, Damian J. Krysan, Luong Thi Hue Tai, Evelyne Kestelyn, Trần Quang Bình, Le Quoc Hung, Nguyen Le Nhu Tung, Jeremy Day
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