Distorted performance measures in compensation contracts elicit suboptimal behavioral responses that may even prove to … whether the widely used class of Residual Income based performance measures — such as Economic Value Added (EVA) — is … economic circumstances and the self-selection of firms using EVA. Our findings indicate that EVA is a distorted performance …

argument en montrant un lien positif entre l’adoption de régimes d’options et la performance de l’entreprise. Toutefois, des … improvements in firm performance. However, most recent results cast a shadow on the validity of these findings. More specifically …

We offer evidence that the use of Relative Performance Evaluation (RPE) in CEOs' incentive contracts influences the … RPE filters out the systematic component of firm performance. We also document that the use of RPE reinforces the …

the collection and use of information for the purpose of subjective performance evaluation. I find that managers with self …-evaluations afterwards. My findings increase our knowledge about the role of subjective performance evaluations in modern organizational …

We offer evidence that the use of Relative Performance Evaluation (RPE) in CEOs' incentive contracts influences the … RPE filters out the systematic component of firm performance. We also document that the use of RPE reinforces the …

Using hand-collected proxy statement data, we examine the distribution of performance metrics used to calculate … performance targets. When we split metrics into GAAP-like and non-GAAP-like measures, we find discontinuities only in the non … suggest that managers can routinely manipulate performance metrics in order to increase their performance-based compensation …

the performance measure and its similarity(congruity, congruence) to the benefit of the manager’s employer. Anecessary …

Baker (2002) has demonstrated theoretically that the quality of performance measures used in compensation contracts … noise and distortion of a performance measure can be measured. Courty and Marschke (2007) have recently developed an elegant … empirical test to detect distortion, based on the degradation of a performance measure subsequent to increasing its weight in …

remedy to the problem, proposed a firm's commitment to incomplete use of past performance in setting future targets. In this … achievement level, the type of a performance measure, and the importance weight. Using a confidential dataset that consists of 1 …,208 performance-measure-year observations with the complete set of information including targets, actual performance, and importance …

We model relative performance evaluation (RPE) when a Chief Executive Officer (CEO) has the power to opportunistically … benefits of receiving a higher bonus by economizing on expected peer-group performance. The Board of Directors (BoD) is less … CEOs choose to reduce common risk only partially and that BoDs choose to not implement RPE if expected peer performance is …