The present study extends the international body of evidence on executive compensation by offering a novel account of the interaction of CEO gender with executive remuneration and firm performance in the Chinese market place. Examination of more than 10,000 firm-year observations, spanning the...

The sensitivity of stock options' payoff to return volatility, or vega, provides risk-averse CEOs with an incentive to increase their firms' risk more by increasing systematic rather than idiosyncratic risk. This effect manifests because any increase in the firm's systematic risk can be hedged...

Using five empirical methodologies to account for endogeneity issues, this study investigates the effects of board independence and managerial pay on the performance of 169 Saudi listed firms between 2007 and the end of 2014. Studying board independence and managerial pay utilises the main...

Saudi Arabia has now opened its markets to foreign investors in line with its strategy to diversify its economy. However, investors need to feel confident that Saudi enterprises are being monitored and regulated appropriately. This study identifies the impact of improvements in Saudi corporate...

Classic financial agency theory recommends compensation through stock options rather than shares to counteract excessive risk aversion in agents. In a setting where any kind of risk taking is suboptimal for shareholders, we show that excessive risk taking may occur for one of two reasons: risk...

This paper compares benefits and costs related to hierarchical and decentralized organizations in an agency framework. We show that the relative efficiency of hierarchy diminishes in contexts with asymmetric information. When effort is not observable, performance-related pay is required in order...

This paper argues that the typical practice of performing growth decompositions based on log-transformed productivity values induces fallacious conclusions: using logs may lead to an inaccurate aggregate growth rate, an inaccurate description of the micro sources of aggregate growth, or both. We...

Digital platforms have become an important part of the digital economy by facilitatingtransactions between large numbers of users and by fostering innovation on collaborativeplatforms. It is striking that platform-based services are dominated by a small number ofglobal players. Most of them are...

After the financial crisis of 2008, the financial soundness of the firms has gained a lot of attention from the regulators, academicians, the public etc. Therefore, the authors wanted to investigate the factors that determine financial soundness of companies. The analysis is conducted on the...

Communication between seller and buyer is done through multiple channels. There are multiple ways to use technical media and channel selection to create more information, but does this lead to a better performance of a firm? Research on the impact of different marketing channels in the industry...