This paper investigates whether observed executive compensation contracts are designed to provide risk-taking incentives in addition to effort incentives. We develop a stylized principal-agent model that captures the interdependence between firm risk and managerial incentives. We calibrate the...

A number of researchers have examined organizations progress through various stages in a life cycle as they grow and develop from birth to death. This article explains organizational life cycle (OLC), its impact on organization performance, and response of human resources (HR) manager for...