Article2018

Consumers Avoid Buying From Firms With Higher CEO ‐to‐Worker Pay Ratios

Bhavya Mohan · Tobias Schlager · Rohit Deshpandé · Michael I. Norton

70 citations0/0 files storedJournal of Consumer Psychology

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Consumer Behavior in Brand Consumption and Identification Corporate Social Responsibility Reporting Experimental Behavioral Economics Studies

Abstract

We document a novel driver of consumer behavior: pay ratio disclosure. Swiss corporation performance data gathered during a legally mandated pay ratio referendum reveals that salient high pay ratios are associated with decreased firm sales (Pilot Study). An incentive‐compatible field experiment shows that, when ratios are revealed, consumers avoid firms with high ratios relative to competitors (Study 1). Finally, the effect of high pay ratios also depends on consumers’ political ideology: Democrats and Independents show decreased purchase intentions for products sold by firms with high ratios, whereas Republicans are unaffected (Study 2).

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 70 citations exist upstream.

References

1965Inequity In Social Exchange 2001Does Doing Good Always Lead to Doing Better? Consumer Reactions to Corporate Social Responsibility 2000Fairness as a Constraint on Profit Seeking: Entitlements in the Market 1986Price and Advertising Signals of Product Quality 2004The Price is Unfair! A Conceptual Framework of Price Fairness Perceptions 2003Consumer Perceptions of Price (Un)Fairness 2015How Elastic Are Preferences for Redistribution? Evidence from Randomized Survey Experiments 1999Perceptions of Price Unfairness: Antecedents and Consequences

Cited by

2020Traveling with Companions: The Social Customer Journey 2018High CEO-to-worker pay ratios negatively impact consumer and employee perceptions of companies 2022CEO pay ratio voluntary disclosures and stakeholder reactions 2019CSR-Contingent Executive Compensation Incentive and Earnings Management 2021Wage Inequality: Its Impact on Customer Satisfaction and Firm Performance 2018

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.