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It is difficult to test the prediction that future career prospects create implicit effort incentives because …
Persistent link: https://www.econbiz.de/10010442390
It is difficult to test the prediction that future career prospects create implicit effort incentives because …
Persistent link: https://www.econbiz.de/10011808006
Persistent link: https://www.econbiz.de/10012263303
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We introduce political tournaments “participation/inclusion” games. Dominant strategies determine whether players choose to compete by enhancing economic performance. Unique Nash equilibria competitors win (only) inclusion as promotion candidates. We find empirical justification for such...
Persistent link: https://www.econbiz.de/10012855692
The extant literature has used measurements of CEO risk-taking incentives which do not include the effects of …-taking incentives but also proposes a new, more direct, measure of risk-taking incentives — compensation gamma. Results show that vega …-taking incentives under normal conditions …
Persistent link: https://www.econbiz.de/10012965715
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It may be surprising that one of the most popular compensation schemes in business is so open to being hacked - to having managers cheat to win. We explore tournament theory to detail its vulnerabilities to various forms of cheating unilateral and multilateral. We identify who is most likely to...
Persistent link: https://www.econbiz.de/10012120156
This paper examines the relation between tournament incentives and reserve management. We find a positive relation … between internal tournament incentives and reserve errors, implying that a larger pay gap as a tournament prize induces vice … profitability. In addition, we find the impact of internal tournament incentives on the reserve error is more pronounced for larger …
Persistent link: https://www.econbiz.de/10012845912