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Many executives have compensation that is potentially forfeit conditioned on the circumstances surrounding their departure from the firm. We study firms' endogenous decisions to use such compensation "holdbacks" as a bonding device and find that firms with higher executive replacement costs,...
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. We also find a tradeoff effect between the price- and non-price features of bank loan contracts such as performance … loans is offset by more restrictive features in loan contracts. Next, we perform the analysis using the Chief Financial …
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In many markets supply contracts include a series of small, regular payments made by consumers and a single, large … bonus contracts, which builds on a model of attentional focusing. Our main result identifies market conditions under which … bonus contracts should be observed: while a monopolist pays a bonus to consumers - if at all - only for low-value goods …
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In many markets supply contracts include a series of small, regular payments made by consumers and a single, large … bonus contracts, which builds on a model of attentional focusing. Our main result identifies market conditions under which … bonus contracts should be observed: while a monopolist pays a bonus to consumers, if at all, only for low-value goods, firms …
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