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assign a non-profit-maximization objective to their managers. Consequently, managers in a delegation game invest more in cost …
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Incentive compensation induces correlation between the portfolio of managers and the cash flow of the firms they manage …. This correlation exposes managers to risk and hence gives them an incentive to hedge against the poor performance of their …
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. Agency theory's insistence on linking the compensation of managers and directors as closely as possible to firm performance …
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We analyze optimal compensation schedules for the directors of two plants belonging to the same owner and producing the same good but serving geographically differentiated markets. Since the outcome of each director depends on his own effort and on a random variable representing market...
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qualitative feedback from the managers involved, are analyzed. It is argued that EVA bonus schemes may have a major …
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