COLE, SHAWN; KANZ, MARTIN; KLAPPER, LEORA - In: Journal of Finance 70 (2015) 2, pp. 537-575
type="main" <title type="main">ABSTRACT</title> <p>We conduct an experiment with commercial bank loan officers to test how performance compensation affects risk assessment and lending. High-powered incentives lead to greater screening effort and more profitable lending decisions. This effect is muted, however, by deferred...</p>
