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The primary role of equity compensation is to provide incentives to an effort-averse agent. Here, we show that the chosen level of equity incentives, when publicly disclosed, will also convey information about future earnings, causing two-way linkages between incentive compensation and financial...
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Innovation is the principle driver of firm and economic growth. Thus one disturbing trend that may explain stagnant growth is a 65% decline in firms' RQ. We propose that the rise of outside CEOs is partially responsible for the decline. While this proposition was motivated by interviews with...
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In this study we analyze how CEO risk incentives affect the efficiency of research and development (R&D) investments. We examine a sample of 843 cases in which firms increase their R&D investments by an economically significant amount over the period of 1995–2006. We find that firms with...
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This study examines the relation between the magnitude of an institution's stock ownership and its tendency to support management through the “Say-On-Pay” (SOP) executive compensation vote. We find that an institutional investor is more likely to oppose management on the SOP vote for...
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American SMEs from 2005 to 2010. The quantitative research method was selected for this research study. The forty small to …: what relationship is there between the board influence, CEO power, and CEO cash compensation, in the American SMEs. The … and external and internal environments surrounding the American SMEs …
Persistent link: https://www.econbiz.de/10012994664