In this study, we investigate the choice of performance measures in promotion decisions. In particular, we examine the extent to which managers incorporate different performance measures for different types of job assignment. Based on a simple theoretical framework, we predict that, in making...

Over the past decades, companies have faced increasing pressures to provide information about CSR. However, firms differ in the extent to which they communicate their CSR-related efforts to their stakeholders (henceforth, “CSR disclosures”) and incorporate CSR-based performance measures in...

In assessing the performance of the CEO, subjectivity by the board of directors is often present in one form or another. We specifically focus on: (1) the ex ante option to ex post override a formula-based contract (“discretionary bonus”), and (2) the ex ante absence of any formula in a...

We study the market for independent directors within a demand-supply framework. Consistent with prior research, we first show that, despite the unambiguous increase in the demand for independent directors since 2000 because of new governance reforms, independent directors have reduced their...