misalignment between managers and the firm, these two purposes are in conflict. This is because the worker with the largest private …: employees that create lower expected profits as managers have yet better promotion prospects. That finding still holds when the … firm owner optimally chooses the promotion rule, the degree of delegation, and wage payments to both employees and managers …

Finance theory does not provide a comprehensive framework for explaining risk management within the imperfect financial … environment in which firms operate. Corporate managers, however, rank risk management as one of their most important objectives … suggests that managers act in the best interest of shareholders. They hedge to reduce real costs like taxes, costs of financial …

Using data from large-scale establishment surveys in Britain and France, we show that incentive pay for non-managers is …