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Using a simple three-period model in which a manager can gather information before making an investment decision, this paper studies incentive effects of various executive stock options. In particular, we show how the exercise price of executive stock options is related to base salary, the size...
Persistent link: https://www.econbiz.de/10008867848
, which for the most part assume timeless contracting, or contracts which last for the full life of a specific investment. The … depend on specific investments. It also addresses the importance of the background legal system. …
Persistent link: https://www.econbiz.de/10008621790
Specific supply-chain investments are vital in achieving faster lead-time performance and more competitive costs. In … contracting to tier-1 and tier-2 suppliers. The results show that the observed practice to delegate investments to tier-1 and … possibly tier-2 suppliers leads to relatively poor performance due to under-investments. The superior arrangement is the …
Persistent link: https://www.econbiz.de/10010662642
Using a simple three-period model in which a manager can gather information before making an investment decision, this paper studies incentive effects of various executive stock options. In particular, we show how the exercise price of executive stock options is related to base salary, the size...
Persistent link: https://www.econbiz.de/10010541772
investments and incomplete contracting, can be supported with approximately-designed contracts. These studies have, for the most … part, restricted attention to specific investments that benefit the investor (e.g., the seller's investment reduces her … cost of producing the good). We find very different results for "cooperative" specific investments that directly benefit …
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