The traditional view on CEO pay suggests that the use of equity-based incentives (e.g., stocks and options) should … relative sense, when comparing with CEOs' non-equity-based incentives (e.g., bonus). We confirm our model's prediction to show … that the use of equity-based incentives actually falls when institutional traders impound more information in stock prices …

without direct benchmarking incentives show no effect. My findings cannot be explained by fund flows and thus constitute a new …

risk managers. This paper analyzes their risk management behavior from a macro perspective and focuses on their incentives … more strongly than more junior managers. Regarding herding as rational strategy of adapting to incentives, one might …

managers and convex compensation contracts. We show that convex incentives lead to significant equilibrium mispricing, but … internalize the externality that their contract choice has on equilibrium prices. As a result, equilibrium incentives may be too …' skill. Convex incentives amplify this negative externality. Indirect incentives due to future fund flows may induce …