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Dynamic Multitasking and Managerial Investment Incentives

Hoffmann, Florian - 2020

We study non-contractible intangible investment in a dynamic agency model with multitasking. The manager's short-term task determines current performance which deteriorates with investment in the firm's future profitability, his long-term task. The optimal contract dynamically balances...

Persistent link: https://www.econbiz.de/10012852466

Supply Constraints and Directors’ Reputational Incentives

Armstrong, Chris - 2020

We examine how constraints on directors' availability to serve on boards influence their labor market outcomes. We find that directors who lose (or leave) a board are more likely to subsequently gain a new board seat, regardless of their performance on the departed board, suggesting that...

Persistent link: https://www.econbiz.de/10012854132

Managerial Risk Incentives and Strategic Risk-Taking in IT

Xue, Ling - 2020

This study examines how the risk-taking motives of top managers drives risk-taking in IT implementations. We use the … risk incentives provided in managerial compensation to capture top managers' risk-taking motives, and develop measures of … in their primary business areas. The implication is that diversification provides risk-seeking managers more …

Persistent link: https://www.econbiz.de/10012856955

Optimal Executive Compensation : Stock Options or Restricted Stocks

Wu, Yan Wendy - 2020

This paper develops an agency model to analyze the optimality of executive stock option compensation in the presence of information manipulation. The analyses show that although information manipulation is positively related to the size of option compensation, the relative size of...

Persistent link: https://www.econbiz.de/10012857493

A Theory of Tax Avoidance -- Managerial Incentives for Tax Planning in a Multi-Task Principal-Agent Model

Ewert, Ralf - 2014

We derive determinants of tax avoidance by means of a multi-task principal-agent model. We extend prevailing models by integrating both corporate and individual income taxation as well as by including tax planning effort in the agent's action portfolio. Our model shows novel and apparently...

Persistent link: https://www.econbiz.de/10013051278

Behavioral Agency Model : A Target-Oriented Approach for Executive Incentives

Bordley, Robert - 2014

assessment of the (uncertain) target to hit. The proposed approach is compatible with prospect theory (see Kahneman and Tversky … prospect theory (see Kaluszka and Krzeszowiec, 2012, 2013). To explicit the agent subjective value function we suggest an … for constructing compensation schemes, which are coherent with Savage's (1954) rationality axioms and prospect theory as …

Persistent link: https://www.econbiz.de/10013055298

The Presence, Value, and Incentive Properties of Relative Performance Evaluation in Executive Compensation Contracts

Bettis, J. Carr - 2014

-order tournament based on three year stock returns compared to a select group of 13 peers (median) and is paid out with stock. Payout …

Persistent link: https://www.econbiz.de/10013059189

Incentives and Management Styles

Shin, Dongsoo - 2015

In a principal-agent framework, we explain different managing styles. In our model, there are two vertical tasks -- an upstream task for improving the project's potential environment, and a downstream task for implementing the project. The downstream task must be done by the worker, but the...

Persistent link: https://www.econbiz.de/10013025119

Managerial Incentives, Risk Aversion and Corporate Policy Decisions

McKnight, Scott - 2016

We provide new evidence that equity incentives can have perverse effects on firm value. Conditioning the relationship between chief executive officer (CEO) incentives and the risk exposure generated by corporate policy decisions on how risk is expected to affect firm value, we find that delta...

Persistent link: https://www.econbiz.de/10012994292

Delegation in multiproduct downstream firms with heterogeneous channels

Choi, Kangsik - In: Journal of economics 135 (2022) 1, pp. 75-102

Persistent link: https://www.econbiz.de/10012796425