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Should principals explain and justify their evaluations? Suppose the principal's evaluation is private information, but she can provide justification by sending a costly cheap-talk message. If she does not provide justification, her message space is restricted, but the message is costless. I...
Persistent link: https://www.econbiz.de/10010361447
Directive into German law and analyze whether a reduction in the minimum content requirements for quarterly reporting increases …, our results reveal that over the period from 2012 to 2019, lower quarterly reporting levels on average have increased … coverage. Our results are robust to potential selection effects regarding firms’ choice of quarterly reporting content levels. …
Persistent link: https://www.econbiz.de/10012643524
We analyze how agents' present bias affects optimal contracting in an infinite-horizon employment setting. The …
Persistent link: https://www.econbiz.de/10011557767
Incentive compensation induces correlation between the portfolio of managers and the cash flow of the firms they manage …. This correlation exposes managers to risk and hence gives them an incentive to hedge against the poor performance of their …
Persistent link: https://www.econbiz.de/10002521243
Corporate scandals, reflected in excessive management compensation and fraudulent accounts, cause considerable damage …. Agency theory’s insistence on linking the compensation of managers and directors as closely as possible to firm performance …
Persistent link: https://www.econbiz.de/10002572375
We analyze optimal compensation schedules for the directors of two plants belonging to the same owner and producing the same good but serving geographically differentiated markets. Since the outcome of each director depends on his own effort and on a random variable representing market...
Persistent link: https://www.econbiz.de/10002738411
managers between countries whereas in the second scenario relocation possibilities exist. Our findings show that the effort …
Persistent link: https://www.econbiz.de/10003965889
In many industries like management consulting, IT consulting, or construction highly qualified employees, i.e., experts … or executive managers, have to be assigned to temporary projects. In firms with many employees and various different …
Persistent link: https://www.econbiz.de/10009765514
findings suggest that, when managers engage in wasteful capital expenditures, welfare may decline if the cost of investment is …
Persistent link: https://www.econbiz.de/10010227267
We derive determinants of tax avoidance by means of a multi-task principal-agent model. We extend prevailing models by integrating both corporate and individual income taxation as well as by including tax planning effort in the agent’s action portfolio. Our model shows novel and apparently...
Persistent link: https://www.econbiz.de/10010367166