A manager's compensation contract and the level of resources available to him jointly influence his incentives to acquire information about different investment alternatives as well as his resource allocate decisions. We show that the optimal compensation contract induces investment allocations...

A long-standing controversy is whether CEO employment contracts insulate inferior managers from discipline leading to shareholder wealth destruction, or whether contracts alleviate managerial risk aversion and encourage value-enhancing decisions. Using a unique dataset on S&P 500 CEO employment...

The relative performance evaluation hypothesis postulates that market-wide and industry-wide performance should not affect the likelihood of CEO involuntary turnover. However, recent academic literature has documented that following poor industry and market performance the likelihood of CEO...