performance is positive and strong prior to distress, but declines and becomes insignificant when firms are in distress. However …, the relationship of pay to cash flow performance remains positive for distressed firms. Directly examining the ex … providing incentives oriented toward improving cash flows. Specifically, distressed firms increase their use of performance …

Distorted performance measures in compensation contracts elicit suboptimal behavioral responses that may even prove to … whether the widely used class of Residual Income based performance measures - such as Economic Value Added (EVA) - is … economic circumstances and the self-selection of firms using EVA. Our findings indicate that EVA is a distorted performance …

Distorted performance measures in compensation contracts elicit suboptimal behavioral responses that may even prove to … whether the widely used class of Residual Income based performance measures — such as Economic Value Added (EVA) — is … economic circumstances and the self-selection of firms using EVA. Our findings indicate that EVA is a distorted performance …

We offer evidence that the use of Relative Performance Evaluation (RPE) in CEOs' incentive contracts influences the … RPE filters out the systematic component of firm performance. We also document that the use of RPE reinforces the …

the collection and use of information for the purpose of subjective performance evaluation. I find that managers with self …-evaluations afterwards. My findings increase our knowledge about the role of subjective performance evaluations in modern organizational …

We offer evidence that the use of Relative Performance Evaluation (RPE) in CEOs' incentive contracts influences the … RPE filters out the systematic component of firm performance. We also document that the use of RPE reinforces the …

Using hand-collected proxy statement data, we examine the distribution of performance metrics used to calculate … performance targets. When we split metrics into GAAP-like and non-GAAP-like measures, we find discontinuities only in the non … suggest that managers can routinely manipulate performance metrics in order to increase their performance-based compensation …

Baker (2002) has demonstrated theoretically that the quality of performance measures used in compensation contracts … noise and distortion of a performance measure can be measured. Courty and Marschke (2007) have recently developed an elegant … empirical test to detect distortion, based on the degradation of a performance measure subsequent to increasing its weight in …

We model relative performance evaluation (RPE) when a Chief Executive Officer (CEO) has the power to opportunistically … benefits of receiving a higher bonus by economizing on expected peer-group performance. The Board of Directors (BoD) is less … CEOs choose to reduce common risk only partially and that BoDs choose to not implement RPE if expected peer performance is …

This study examines the effect of relative performance evaluation (RPE) on firm performance and risk-taking behavior … when firm performance is exposed to common shocks. I find that among firms with high common risk exposure, RPE firms are … associated with higher firm performance than non-RPE firms. However, among firms with low common risk exposure, I find no …