Showing 1 - 10 of 1,085
This paper investigates the effects of regulatory interventions on contracting relationships within firms by examining the impacts of the Sarbanes–Oxley (SOX) Act on CEO compensation. Using panel data of the S&P 1500 firms, it quantifies welfare gains from a principal–agent model with hidden...
Persistent link: https://www.econbiz.de/10014244206
This paper investigates whether observed executive compensation contracts are designed to provide risk-taking incentives in addition to effort incentives. We develop a stylized principal-agent model that captures the interdependence between firm risk and managerial incentives. We calibrate the...
Persistent link: https://www.econbiz.de/10011378949
We investigate an emerging pay-performance activism under a natural setting of performance-focused shareholder proposals rule (PSPs) (Rule 14a-8) established by the Securities and Exchange Commission (SEC) for top management compensation. We find that: (1) PSP sponsors successfully identify...
Persistent link: https://www.econbiz.de/10013066953
We investigate experimentally how the enforcement of negative say on pay (SoP) votes affects a CEO's investment incentives, the level and structure of executive compensation, and firm performance. We operationalize the board's discretion in response to a no-vote via three levels of SoP...
Persistent link: https://www.econbiz.de/10013070019
, previous research focuses on equity incentives and largely ignores other elements of incentive pay. We contribute to this … literature by analyzing all forms of incentive pay for several types of managerial positions and include additional measures of … both type of incentive pay and position. Our findings have important policy implications and suggest that compensation …
Persistent link: https://www.econbiz.de/10013112655
We study the relationship between CEO pay-performance sensitivity, pay-risk sensitivity, and shareholder voting outcomes as part of the "say-on-pay" provision of the 2010 U.S. Dodd-Frank Act. Consistent with our hypothesis, we provide evidence that shareholders tend to approve of compensation...
Persistent link: https://www.econbiz.de/10012903167
This article contributes to the literature by indicating how certain monetary policies impact the compensation incentives of US managers to adopt riskier business policies. Specifically, based on the agency problems between shareholders and managers and between shareholders and creditors, a...
Persistent link: https://www.econbiz.de/10012694415
of firm impropriety, to develop hypotheses predicting that top management incentive compensation and poor organizational … support for both incentive and relative performance influences on financial statement misrepresentation …
Persistent link: https://www.econbiz.de/10014224631
compensation decisions do not subscribe to conventional thinking on incentive creation.To be sure, at all but one of these …
Persistent link: https://www.econbiz.de/10013305552
We conduct a field experiment where we vary both the presence of a gift exchange wage and the effect of the worker's effort on the manager's payoff. The results indicate a strong complementarity between the initial wage gift and the agent's ability to "repay the gift". We collect information on...
Persistent link: https://www.econbiz.de/10009488990