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In this study we analyze how CEO risk incentives affect the efficiency of research and development (R&D) investments …-vega compensation portfolios may induce managers to overinvest in inefficient R&D projects and therefore hurt firm performance. …
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(individual or group performance) and its design (commissions, piece-rate or sharing schemes). Individual incentives demonstrate … the largest effect, while group or team incentives are smaller in magnitude. The case for government intervention through … tax breaks and other financial incentives is highly debated due to differences across firms and the potential for economic …
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