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This study addresses the relationship between incentive compensation and complex outsourcing in somewhat different vein. The agency theory suggests, firstly that managers are constantly faced with allocation of efforts and choices and within this context their decisions are driven by incentive...
Persistent link: https://www.econbiz.de/10013002726
incentives are renewed but fade when they are discontinued. Fixed bonuses lead to smaller effects. Both treatments appear to …
Persistent link: https://www.econbiz.de/10011517727
Group-based incentive pay is attractive in contexts where production is complex and interdependent, yet freeriding is a paramount concern. We assess the introduction of group-based performance pay in a modern industrial production setting using difference-in-difference estimation. Performance...
Persistent link: https://www.econbiz.de/10012804137
National Basketball Association (NBA) contracting rules provide plausibly exogenous variation in career concerns near contract end. We use this setting to study how individual career concerns affect risk-taking behavior and can sabotage team performance. Using the frequency and duration of...
Persistent link: https://www.econbiz.de/10012856480
the performances of co-workers. Assuming heterogeneity among the workers the interplay of emotions and incentives is … identify certain conditions under which emotions lead to additional incentives and under which the employer benefits from …
Persistent link: https://www.econbiz.de/10013319089
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
This study examines the sophistication of rating agencies in incorporating managerial risk-taking incentives into their … credit risk evaluation. We measure risk-taking incentives using two proxies: the sensitivity of managerial wealth to stock … impound managerial risk-taking incentives in their credit risk assessments. Assuming other things equal, a one standard …
Persistent link: https://www.econbiz.de/10012975010
magnitude of performance improvements during the incentive period, but are relatively short lived, while implicit incentives …
Persistent link: https://www.econbiz.de/10011876922
We examine how competition in supplier industries affects CEO incentive intensity in procuring firms. Using the Input-Output Accounts Data (IO Data) published by the Bureau of Economic Analysis (BEA), we compute a weighted supplier industry competition measure. We then predict and find that...
Persistent link: https://www.econbiz.de/10012898461
Consider a principal-agent relationship in which more effort by the agent raises the likelihood of success. Does rewarding success, i.e., paying a bonus, increase effort in this case? I find that bonuses have not only an incentive but also an income effect. Overall, bonuses paid for success may...
Persistent link: https://www.econbiz.de/10003592884