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Research Question/Issue: Do large, within-firm executive pay differences hurt firm performance? Prior literature shows mixed results concerning the sign of the relationship between executive pay disparity and firm performance. This study evaluates that literature, clarifies what tournament...
Persistent link: https://www.econbiz.de/10015075389
crowding out due to low-powered incentives. High-powered incentives in the workplace tend to increase output, but it is unknown … also extends to high-powered incentives, in a real work setting with paid workers. There is individual heterogeneity …
Persistent link: https://www.econbiz.de/10011946785
We compare evaluations of employee performance by individuals and groups of supervisors, analyzing a formal model and running a laboratory experiment. The model predicts that multi-rater evaluations are more precise than single-rater evaluations if groups rationally aggregate their signals about...
Persistent link: https://www.econbiz.de/10014493793
The core role of managerial accounting is to provide information to facilitate managers' decisions and influence their … behavior through incentives. We study the impact of these two roles of information on profits by implementing a field … experiment in a large retail chain. In a 2 × 2 factorial design, we vary: (i) whether store managers obtain access to decision …
Persistent link: https://www.econbiz.de/10012487017
Empirical studies of the principal-agent relationship find that extrinsic incentives work in many instances, linking … drive to work to master a skill or to improve one's self image, is thought to be the key to whether incentives work or not …. If the incentives crowd-out intrinsic motivation, and the effect is large enough, the net motivational effect on effort …
Persistent link: https://www.econbiz.de/10009771729
that increase the incentives of relatively more able workers, heterogeneity is unlikely to be as detrimental as commonly … perceived for incentives in organizations with multiple hierarchy levels. Heterogeneity of the workforce may even be optimal … from the perspective of a firm that provides incentives using a multi-stage promotion contest. …
Persistent link: https://www.econbiz.de/10010394022
When designing incentives for a manager, the trade-off between insurance and a "good" allocation of effort across … ; multitasking ; incentives …
Persistent link: https://www.econbiz.de/10003323166
interest in increasing incentive-based compensation to avoid management's excessive risk taking and short-run oriented …
Persistent link: https://www.econbiz.de/10011526742
managers and thus possibly making China's listed firms less effective in solving the agency problem. As such, ownership …
Persistent link: https://www.econbiz.de/10003225948
This paper provides the first rigorous econometric estimates on the pay-performance relations for executives of Korean firms with and without Chaebol affiliation. To do so, we have assembled for the first time panel data (that provide information not only on executive compensation and firm...
Persistent link: https://www.econbiz.de/10003225965