This paper studies the role of performance standards in executive annual bonus plans. We find that earned bonuses exceed pre-determined target bonuses (on average), implying that standards do not reflect performance expectations in a statistical sense. We also find that target bonuses are...

In dynamic principal-agent relationships, unless a principal can precommit to a multiperiod contract, incentives are affected by a problem known as the ratchet effect. We present a two period agency model to show that the use of more aggregate performance measures and greater consolidation of...

Over the last decade new manufacturing methods and techniques have focused on reducing waste in production tasks. Just-In-Time (JIT) manufacturing is one of the most popular new technologies adopted. This dissertation describes the impact of Just-In-Time manufacturing on firm value, product...