<p>This document contains presentation slides for the American Finance Association's Presidential Address of January 4, 2020. The address is based on the paper "Social Transmission Bias in Economics and Finance."</p><p>The paper: "https://ssrn.com/abstract=3550880" https://ssrn.com/abstract=3550880...</p>

We revisit the question of how performance measures are used to evaluate business unit managers in response to intra-firm spillovers because prior studies have documented conflicting empirical evidence. Specifically, we are interested in variation in the relative incentive weightings of...

We consider a principal-multi agent model that features a three-tier hierarchy, defined as a setting where the principal contracts with an agent-manager and delegates to the manager some authority to contract with other agents. A key highlight is that incentive compensation, performance...

We study three elements of management control: incentive compensation, performance monitoring, and delegation of authority to managers to contract with lower-level employees. Using a principal-agent model, we highlight important direct and indirect interactions between and among these endogenous...

We examine how performance management practices that render employee accomplishments transparent in an organization depend on employees’ hierarchical level. We consider a principal-agent model of an organization where the principal contracts directly with a group of higher-level agent-workers...

The importance of knowledge and skills in meeting new challenges in production and distribution is particularly evident in today’s market, which is characterized by a saturation of products and strong competition. To be successful in the market, companies must stand out and be creative and...

Ein typisches Ergebnis einfacher Prinzipal-Agent-Modelle ist, dass die Arbeitsanstrengung des Agenten lediglich vom leistungsabhängigen Teil der Vergütung getrieben wird. In dieser Arbeit wird gezeigt, dass dies nicht notwendigerweise gilt, wenn Agenten referenzpunktabhängige Präferenzen und...

Prior economic research is very critical about family CEOs and family management. Nepotism, altruism, lower managerial abilities, and a small pool of qualified family candidates are cited as reasons that speak against family management. Still, the empirical reality is different. A surprisingly...

This study explores the effect of employee organizational identity on developing effective compensation contracts to improve organizational performance. We adopt the economic identity theory to mathematically model and test this model using data from a Japanese listed firm that uses an...

When an investment is in goodwill, a divisional performance measurement based on residual income is subject to what is included in assets, as IFRS requires.Especially in case the project may be shut down on its way, investment base for the calculation of residual income measures is dependent of...