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The principal-agent model of executive compensation is of central importance to the modern theory of the firm and corporate governance, yet the existing empirical evidence supporting it is quite weak. The key predication of the model is that the executive's pay-performance sensitivity is...
Persistent link: https://www.econbiz.de/10012472176
to those in the rest of the world, any uncertainty over these costs will cause the social planner to optimally delay … traditional framework, the presence of an irreversible investment and uncertainty can help nudge the decision maker to preserve an …-renewable resource model, the arbitrage condition underpinning the Hotelling rule suggests that in the absence of uncertainty, the …
Persistent link: https://www.econbiz.de/10012457342
expected welfare than "flat" emission standards given uncertainty in demand for output (or attributes), assuming locally …
Persistent link: https://www.econbiz.de/10012480118
Using novel US environmental spill data, we document a robust negative relationship between the number of spills a firm experiences in a given year and its contemporaneous and lagged (but not future) cash flow. In addition, studying two natural experiments, we find an increase (decrease) in...
Persistent link: https://www.econbiz.de/10012453200
We find that money managers could reduce portfolio risk by incorporating Environmental, Social, and Governance (ESG) criteria into their investment process. ESG-related issues can cause sudden regulatory changes and shifts in consumer tastes, resulting in large asset price swings which leave...
Persistent link: https://www.econbiz.de/10012453650
We test the hypothesis that net foreign asset positions are consistent with external solvency and examine the dynamics of external adjustment using data for 50 countries over the 1970-2006 period. Our analysis adapts Bohn's (2007) error-correction reaction function approach--which tests for a...
Persistent link: https://www.econbiz.de/10012460279
Empirical research on the permanent income hypothesis (PIH) has found that consumption growth is excessively sensitive to predictable changes in income. This finding is interpreted as strong evidence against the PIH. We propose an explanation for apparent excess sensitivity that is based on a...
Persistent link: https://www.econbiz.de/10012471755
The recent experimental evaluation of the U.S. Job Training Partnership Act (JTPA) program found negative effects of training on the earnings of disadvantaged male youth and no effect on the earnings of disadvantaged female youth. These findings provided justification for Congress to cut the...
Persistent link: https://www.econbiz.de/10012472709
This paper studies the macroeconomic effects of energy price shocks in energy-importing economies using a heterogeneous …-agent New Keynesian model. When MPCs are realistically large and the elasticity of substitution between energy and domestic … goods is realistically low, increases in energy prices depress real incomes and cause a recession, even if the central bank …
Persistent link: https://www.econbiz.de/10014337777
different nested structures of input factors: capital, labor with or without human capital adjustment, and energy using data for …
Persistent link: https://www.econbiz.de/10012459557