Competitive Aggressiveness & Behavioral Agency: Exploring the Role of CEO Self-Interest

Scholars in strategic management have long studied competition among firms. Many of the factors of competition have been examined via the awareness, motivation, capability lens (based on resource dependence). Yet, the factors that provide intrinsic motivation for CEOs to engage in competitive activity have received less attention. Our study seeks to complement the existing insights by focusing on CEO self- interest and specifically, loss aversion with regard to their equity wealth. We further examine how vesting status of CEO equity influences two types of competitive behavior: strategic and tactical. As such, we provide a new avenue to explain firm-level competitive behavior and interfirm rivalry across strategic and tactical competitive actions We also provide a fresh perspective to examine the implications of equity based pay for shareholders by demonstrating that CEO risk bearing associated with equity wealth can align the objectives of agent and principal, that could potentially offset the well docum...