This article investigates the paradox of insider information and performance pay as it pertains to managerial compensation. The paradox is that managers are permitted to exploit their role as insiders for personal financial gain when simple directives issued by their board of directors could...

This paper develops and implements a semiparametric estimator for investi-gating, with panel data, the importance of human capital accumulation, nonsep-arable preferences of females and child care costs on females life-cycle fertility and labor supply behaviors. It presents a model in which the...

The theory of moral hazard predicts that since the activities of managers are hard to monitor directly, managerial compensation is tied to the profitability of the firms they manage. In this empirical study we investigate the hypothesis that the secular trends in managerial compensation can be...