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having managers cheat to win. We explore tournament theory to detail its vulnerabilities to various forms of cheating …, we discuss possible ways to address these vulnerabilities to the schemes we rely on to motivate managers to put in the …
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lens of effort incentives-risk premium trade-offs derived from classical principal-agent theory. In contrast, the recent … competitors to assess a firm’s strategic direction, and for investors to hold managers accountable for strategy execution …
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paper proposes a theory of incentive design allowing for such distorted behavior. At the heart of the theory is a trade …-off between getting the agent to exert effort and ensuring that this effort is used well. The theory covers various moral …
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This paper presents a model of a firm that backdates the granting of executive stock options in order to maximize actual compensation for a given level of reported compensation. The model is used to estimate the magnitude of the difference between the actual and reported values of option grants....
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We examine the dynamics of firms' internal succession methods and find that horse race successions are common among the largest U.S. firms. Although heir and horse race CEO candidates are of similar quality, the consequences of these two succession methods differ significantly. We show that...
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