performance is positive and strong prior to distress, but declines and becomes insignificant when firms are in distress. However …, the relationship of pay to cash flow performance remains positive for distressed firms. Directly examining the ex … providing incentives oriented toward improving cash flows. Specifically, distressed firms increase their use of performance …

Distorted performance measures in compensation contracts elicit suboptimal behavioral responses that may even prove to … whether the widely used class of Residual Income based performance measures - such as Economic Value Added (EVA) - is … economic circumstances and the self-selection of firms using EVA. Our findings indicate that EVA is a distorted performance …

Distorted performance measures in compensation contracts elicit suboptimal behavioral responses that may even prove to … whether the widely used class of Residual Income based performance measures — such as Economic Value Added (EVA) — is … economic circumstances and the self-selection of firms using EVA. Our findings indicate that EVA is a distorted performance …

We offer evidence that the use of Relative Performance Evaluation (RPE) in CEOs' incentive contracts influences the … RPE filters out the systematic component of firm performance. We also document that the use of RPE reinforces the …

the collection and use of information for the purpose of subjective performance evaluation. I find that managers with self …-evaluations afterwards. My findings increase our knowledge about the role of subjective performance evaluations in modern organizational …

Baker (2002) has demonstrated theoretically that the quality of performance measures used in compensation contracts … noise and distortion of a performance measure can be measured. Courty and Marschke (2007) have recently developed an elegant … empirical test to detect distortion, based on the degradation of a performance measure subsequent to increasing its weight in …

remedy to the problem, proposed a firm's commitment to incomplete use of past performance in setting future targets. In this … achievement level, the type of a performance measure, and the importance weight. Using a confidential dataset that consists of 1 …,208 performance-measure-year observations with the complete set of information including targets, actual performance, and importance …

This study examines the effect of relative performance evaluation (RPE) on firm performance and risk-taking behavior … when firm performance is exposed to common shocks. I find that among firms with high common risk exposure, RPE firms are … associated with higher firm performance than non-RPE firms. However, among firms with low common risk exposure, I find no …

In the empirical estimation of the relation between CEO pay and both firm and peer performance, researchers typically … include conventional accounting-based measures that reflect firm performance net of executive pay expense. We analytically … show that when firms evaluate CEO performance relative to peers, the coefficients on such net accounting measures are …

We investigate the role of Relative Performance Evaluation (RPE) theory in CEO pay and turnover using a product … affecting the firm and its peers) while evaluating CEO performance and that the extent of filtering increases with the number of …