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Yesterday's Heroes : Compensation and Creative Risk-Taking
Cheng, Ing-Haw - 2010
We study the relationship between compensation and risk-taking among finance firms using a neglected insight from principal-agent contracting with hidden action and risk-averse agents. If the sensitivity of pay to stock price or slope does not vary with stock price volatility, then total...
Persistent link: https://www.econbiz.de/10012462481
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A Calibratable Model of Optimal CEO Incentives in Market Equilibrium
Edmans, Alex - 2007
This paper presents a unified framework for understanding the determinants of both CEO incentives and total pay levels in competitive market equilibrium. It embeds a modified principal-agent problem into a talent assignment model to endogenize both elements of compensation. The model's closed...
Persistent link: https://www.econbiz.de/10012465278
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Lucky Directors
Bebchuk, Lucian A. - 2006
While prior empirical work and much public attention have focused on the opportunistic timing of executives' grants, we provide in this paper evidence that outside directors' option grants have also been favorably timed to an extent that cannot be fully explained by sheer luck. Examining events...
Persistent link: https://www.econbiz.de/10012465848
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Optimal Executive Compensation vs. Managerial Power : A Review of Lucian Bebchuk and Jesse Fried's "Pay without Performance
Weisbach, Michael S. - 2006
This essay reviews Bebchuk and Fried's "Pay without Performance: The Unfulfilled Promise of Executive Compensation". Bebchuk and Fried criticize the standard view of executive compensation, in which executives negotiate contracts with shareholders that provide incentives that motivate them to...
Persistent link: https://www.econbiz.de/10012465861
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Lucky CEOs
Bebchuk, Lucian A. - 2006
We study the relation between corporate governance and opportunistic timing of CEO option grants via backdating or otherwise. Our methodology focuses on how grant date prices rank within the price distribution of the grant month. During 1996-2005, about 12% of firms provided one or more lucky...
Persistent link: https://www.econbiz.de/10012465890
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What Do Independent Directors Know? Evidence from Their Trading
Ravina, Enrichetta - 2006
We compare the trading performance of independent directors and other officers of the firm. We find that independent directors earn positive and substantial abnormal returns when they purchase their company stock, and that the difference with the same firm's officers is relatively small at most...
Persistent link: https://www.econbiz.de/10012465896
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Eclipse of Rent-Sharing : The Effects of Managers' Business Education on Wages and the Labor Share in the US and Denmark
Acemoglu, Daron; He, Alex Xi; Le Maire, Daniel - National Bureau of Economic Research - 2022
This paper provides evidence from the US and Denmark that managers with a business degree ("business managers") reduce … by 5 percentage points in the US, and by 3% and 3 percentage points in Denmark. Firms appointing business managers are … retirements and deaths and an IV strategy based on the diffusion of the practice of appointing business managers within industry …
Persistent link: https://www.econbiz.de/10013172173
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Shared Capitalism in the U.S. Economy? Prevalence, Characteristics, and Employee Views of Financial Participation in Enterprises
Kruse, Douglas L. - 2008
Between one-third and one-half of employees participate directly in company performance through profit sharing, gainsharing, employee ownership, or stock options. This flies in the face of concerns about the free rider problem and worker risk aversion in group incentives, and raises many...
Persistent link: https://www.econbiz.de/10012464414
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Shared capitalism at work : employee ownership, profit and gain sharing, and broad-based stock options
Kruse, Douglas L. (contributor);  … - 2010
Persistent link: https://www.econbiz.de/10003871072
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How Much Does Size Erode Mutual Fund Performance? A Regression Discontinuity Approach
Reuter, Jonathan - 2010
The level of diseconomies of scale in asset management has important implications for tests of manager skill and the expected level of performance persistence. To identify the causal impact of fund size on future returns, we exploit the fact that small differences in returns can cause discrete...
Persistent link: https://www.econbiz.de/10012462327