reasonably approximate real-life decision makers? behavior. Testing this theory with field data is difficult since typically …

of the typical American firm. Variable pay is usually touted as a way to provide incentives to managers whose interests … received much attention, but is consistent with many of the facts, is selection. Managers and industry specialists may have … information about a firm?s prospects that is unavailable to outside investors. In order to induce managers to be truthful about …

When designing incentives for a manager, the trade-off between insurance and a good allocation of effort across various …

mitigated by pay-for-performance incentives for managers who decide upon promotion. Second, we analyze matched employer …This paper investigates the effects of managerial incentives on favoritism in promotion decisions. First, we … indeed substantially higher when managers receive performance-related pay or participate in gain sharing plans. …

ownership and supervisory board size, we do find significant entrenchments effects associated with ownership by managers …