Building on prior research that postulates a positive relationship between firms’ cash flow and innovation output, we examine whether the use of cashflow performance metrics in CEOs’ compensation contracts has a positive effect on firms’ innovation output. We hypothesize and find that...

We show that firms' Delta incentives can predict the market performance of their industry peers. When a small group of firms (leader firms) experiences substantial growth in Delta incentives, industry peers experience positive abnormal returns and abnormal improvement in fundamentals despite...

Prior theoretical studies on agency problems hold different opinions against empirical works on two questions: (i). Are CEOs incentivized to shelter good information? (ii). Are CEOs incentivized to evenly shelter firms' good and bad information? This paper answers these questions by...