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Ironing out the kinks in executive compensation: Linking incentive pay to average stock prices
Tian, Yisong S. - In: Journal of Banking & Finance 37 (2013) 2, pp. 415-432
Traditional stock option grant is the most common form of incentive pay in executive compensation. Applying a principal-agent analysis, we find this common practice suboptimal and firms are better off linking incentive pay to average stock prices. Among other benefits, averaging reduces...
Persistent link: https://www.econbiz.de/10010595268
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Job mission as a substitute for monetary incentives : experimental evidence
Cassar, Lea - 2014
Are monetary and non-monetary incentives used as substitutes in motivating effort? I address this question in a laboratory experiment in which the choice of the job characteristics (i.e., the mission) is part of the compensation package that principals can use to influence the agents' effort....
Persistent link: https://www.econbiz.de/10010414760
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Social Connections and Incentives in the Workplace: Evidence from Personnel Data
Bandiera, Oriana; Barankay, Iwan; Rasul, Imran - C.E.P.R. Discussion Papers - 2009
We present evidence on the effect of social connections between workers and managers on productivity in the workplace. To evaluate whether the existence of social connections is beneficial to the firm's overall performance, we explore how the effects of social connections vary with the strength...
Persistent link: https://www.econbiz.de/10005791992
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Gift-exchange, incentives, and heterogeneous workers
Non, Arjan - In: Games and Economic Behavior 75 (2012) 1, pp. 319-336
By incorporating reciprocity in an otherwise standard principal–agent model, I investigate the relation between monetary gift-exchange and incentive pay, while allowing for worker heterogeneity. I assume that some, but not all, workers care more for their principal when they are convinced that...
Persistent link: https://www.econbiz.de/10011049876
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Sabotage in Tournaments: Making the Beautiful Game a Bit Less Beautiful
Garicano, Luis; Palacios-Huerta, Ignacio - C.E.P.R. Discussion Papers - 2005
We exploit an incentive change in professional soccer leagues aimed at encouraging more attacking and goal scoring to obtain evidence on the effect of stronger incentives on productive and destructive effort. Using as control the behavior of the same teams in a competition that experienced no...
Persistent link: https://www.econbiz.de/10005114301
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The prevention of excess managerial risk taking
Wesep, Edward D. Van; Wang, Sean - In: Journal of Corporate Finance 29 (2014) C, pp. 579-593
Executives with poor prior performance may be inclined to take excessive risk in the hope of meeting performance targets, in which case a compensation contract featuring severance pay can be optimal. While prior work has shown that severance can induce managers to take positive NPV risks, we...
Persistent link: https://www.econbiz.de/10011117514
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Market competition and executive pay : increased competition affects the pay incentives firms provide to their managers and may also affect overall pay structures
Ferreira, Priscila - 2015
Deregulation and managerial compensation are two important topics on the political and academic agenda. The former has been a significant policy recommendation in light of the negative effects associated with overly restrictive regulation on markets and the economy. The latter relates to the...
Persistent link: https://www.econbiz.de/10011427661
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The efficacy of shareholder voting : evidence from equity compensation plans
Armstrong, Christopher; Gow, Ian D.; Larcker, David F. - 2012 - Draft: March 13, 2012
This study examines the effects of shareholder support for equity compensation plans on subsequent chief executive officer (CEO) compensation. Using cross-sectional regression, instrumental variable, and regression discontinuity research designs, we find little evidence that either lower...
Persistent link: https://www.econbiz.de/10009520059
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The effect of solvency regulations and accounting standards on long-term investing : implications for insurers and pension funds
Severinson, Clara; Yermo, Juan - 2012
This report reviews recent as well as planned changes to accounting and solvency regulations affecting insurers and pension funds and how they may impact long-term investing by these institutions. The review of existing evidence focuses mainly on the impact of risk-based solvency requirements,...
Persistent link: https://www.econbiz.de/10009684014
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Corporate governance, uncertainty and executive stock option plans
Álvarez-Pérez, Dolores; Neira-Fontela, Edelmira; … - In: management revue. Socio-economic Studies 24 (2013) 4, pp. 250-269
the Board of Directors. To this end, the study, besides analysing how the level of monitoring and uncertainty influences … Madrid Stock Exchange for the period 1999–2001, it also aims to determine the influence of the level of uncertainty in the … reveal that 1) the use of SOPs increases as a) the level of monitoring decreases, and b) uncertainty increases; and 2 …
Persistent link: https://www.econbiz.de/10010856852