Happiness is not only the main pursuit of people's lives but also an important factor that influences people's behavior. This study tested the impact of happiness on the stability of corporate top management team (TMT). We found that a higher happiness level at the corporate level leads to a...

This paper analyzes executive compensation in a setting where managers may take a costly action to manipulate corporate performance, and whether managers do so is stochastic. We show that an increase in the possibility of manipulation actually calls for executive pay to be more responsive to...

The paper investigates the optimal structure of executive compensation with the possibility of financial data manipulation. We characterize the optimal compensation contract analytically, and establish necessary and sufficient conditions for earnings management to occur. The model shows that the...