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To align employees’ interests with the firm’s goals, employers often use performance-based pay, but designing such a compensation plan is challenging because performance is typically multifaceted. For example, a sales employee should be incentivized to sell the company’s product, but a...
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We use administrative personnel records of a large British financial sector employer to investigate how workers' behaviour responds to remuneration differences and 'luck' in the promotion system. The main methodological innovation is the use of the early part of a panel dataset to construct an...
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Agency mortgage backed securities (MBS) with diverse characteristics are traded in parallel with individualized contracts in the specified pool (SP) market and with standardized contracts in the to-be-announced (TBA) market. We find that this unique parallel trading environment significantly...
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We study the relationship between funding liquidity and the valuation of mortgage-backed securities. Most of the … liquidity of MBS investors that is independent of prepayment risk premia and agency credit spreads. We find that our implied … funding liquidity spread is strongly related to measures of intermediary balance sheet constraints and primary dealer …
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