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information asymmetries about firm value by shareholders in continuous time. The dynamics of the stock price process are affected … compensation is the point in time at which the stock price is most informative about the manager's action. When exogenous shocks … accumulate at a constant rate over time and learning occurs at a decreasing rate, the optimal timing of compensation is the point …
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We investigate the impact of a firm's compensation consultant choice on executive compensation by examining shifts in consultant choice following a 2009 US Securities Exchange Commission requirement that firms disclose fees paid to compensation consultants for both consulting and other services....
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This paper shows that portfolio constraints have important implications for management compensation and performance evaluation. Concretely, in the presence of portfolio constraints, allowing for benchmarking can be beneficial. Benchmark design arises as an alternative effort inducement mechanism...
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