One of the standard predictions of the agency theory is that more incentives can be given to agents with lower risk aversion. In this paper, we show that this relationship may be absent or reversed when the technology is endogenous and projects with a higher efficiency are also riskier. Using a...

I study the optimal choice of projects in a continuous-time moral hazard model with multitasking. I characterize the distortions caused by moral hazard and the dynamics of the firm's project choice. Both overinvestment and underinvestment relative to an NPV criterion can occur on the path of the...

This paper focuses on the effect of relative performance evaluation (RPE) on top managers’ compensation in Chinese public firms. Overall, we find no evidence of an RPE effect or any asymmetry in firms’ use of RPE. The results obtained using Albuquerque’s (2009) method are similar to those...

We measure whether, in a developing country, existence of a 'hard' strategic human resource management (SHRM) strategy developed at high organizational levels or one designed to enhance employee knowledge inputs and thereby promote employer- employee interdependence (EEIN) is a stronger...

Purpose: This paper focuses on the job satisfaction of the employees of the ready-made garment industry in Bangladesh. Introduction: Almost every country irrespective of its stage of development is engaged in garment manufacturing and trading. This industry migrates from high-wage to low-wage...

Research’s goal is to show what managers should know in order to improve employees’ performance by guiding their behaviour and motivating them. To succeed, the manager must develop positive attitudes towards himself and the circumstances in which he is located.

We investigate the relationship between tournament prices and effort choices in the presence of favoritism. High tournament prizes can decrease agents’ effort supply when the choice of the winner is not perfectly objective but affected to some extent by personal preferences of an evaluator.

Skandia, a 145 year-old company that’s transformed itself from a regional insurance company into a global financial services company in the last 15 years, presents an interesting case study of why increasing transparency into intangible asset management and value-creation leads to better long...