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effort from workers. I predict and find that uncertainty in workers' effort-performance relationship moderates the effect of … horizon on effort. Horizon and uncertainty affect expectancy (probability of standard attainment) which in turn determines … low uncertainty decreased effort as horizon increased. However, those facing high uncertainty increased effort as horizon …
Persistent link: https://www.econbiz.de/10012854791
While prior studies generally support that equity-based compensation induces CEOs to manipulate financial reporting, there is little direct empirical evidence on how concerns regarding financial misreporting affect compensation design. Exploiting the exogenous reduction in litigation threat...
Persistent link: https://www.econbiz.de/10012929894
Theoretical and empirical studies argue that managerial hoarding of negative firm-specific information can result in large negative stock price corrections once the accumulated information is revealed. A managerial labor market with tournament-like progression provides managers with the...
Persistent link: https://www.econbiz.de/10012825407
Strategic projects are mostly executed by teams of specialists, each of whom are responsible for the completion of specialized, uncertain, and, in many cases, interdependent tasks, i.e. a challenging triad. Unfortunately, senior management can rarely determine, or verifiably measure, the true...
Persistent link: https://www.econbiz.de/10013008890
Agency theory suggests the use relative performance evaluation (RPE) to filter out systematic risks from a noisy performance measure. The presence of exposure risk, i.e. if the exposure to the systematic risks moves over time, however precludes complete filtering. In the present study I first...
Persistent link: https://www.econbiz.de/10012957295
moderated when firm-level uncertainty is high, consistent with performance being attributed more to luck rather than skill and … effort, which can create incentives to shift earnings toward lower-uncertainty periods. We show that the resulting … opportunistic earnings management more challenging. Our evidence highlights a novel channel through which uncertainty affects …
Persistent link: https://www.econbiz.de/10012997009
We examine the impact of the cultural norm of uncertainty avoidance on employee stock option (ESO) exercise behaviour … using proprietary data from a multinational firm. We find that employees from countries with higher levels of uncertainty … that employee attitudes towards uncertainty influence stock option exercise behaviours. Our findings further help to …
Persistent link: https://www.econbiz.de/10012936898
Persistent link: https://www.econbiz.de/10013086247
We use the NBER Shared Capitalism Database comprised of more than 40,000 employee surveys from 14 firms to explore whether a close match between workers' risk preferences and the riskiness of their compensation packages relates to improved employee outcomes including lower absenteeism, lower...
Persistent link: https://www.econbiz.de/10013109193
Traditionally, researchers have had difficulty testing the relationship between the degree of risk or uncertainty in …
Persistent link: https://www.econbiz.de/10013137206