Datta, Sudip; D'Mello, Ranjan; Iskandar-Datta, Mai - In: Journal of Financial Intermediation 18 (2009) 2, pp. 242-258
We document that chief executive officer (CEO) incentive compensation plays an important role in determining internal capital market (ICM) allocation efficiency. Our results suggest that CEO equity-based compensation can be effective in ameliorating inefficiencies in internal capital allocation...