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Risk taking of executives under different incentive contracts : experimental evidence

Lefebvre, Mathieu; Vieider, Ferdinand M. - 2011

Classic financial agency theory recommends compensation through stock options rather than shares to induce risk … attitudes under different compensation regimes than traditional principal-agent models grounded in expected utility theory. … are excessive from the perspective of shareholders if compensated through options. Compensation through restricted company …

Persistent link: https://www.econbiz.de/10009124639

When pay increases are not enough : the economic value of wage Delegation in the field

Jeworrek, Sabrina; Mertins, Vanessa - 2014

By conducting a natural field experiment, we test whether a managerial policy of allowing employees to self-determine their wages is as successful as recently suggested by laboratory evidence. We find that this policy indeed enhances performance. However, our data is clearly at odds with the...

Persistent link: https://www.econbiz.de/10010354002

Do self-determined wages really improve employees performance? : evidence from a randomized field experiment : conference paper

Jeworrek, Sabrina; Mertins, Vanessa - 2014

Recent laboratory evidence suggests that employees who have the extraordinary right to self-determine their wages perform better. By conducting a natural field experiment, we aim to test whether this policy actually has the predicted positive effects in a real-labor market. Employees were hired...

Persistent link: https://www.econbiz.de/10010486690

Paid to quit

Dur, Robert A. J.; Schmittdiel, Heiner - 2013

Inspired by a recent observation about an online retail company, this paper explains why a firm may find it optimal to offer an exit bonus to recent hires so as to induce self-selection. We study a double adverse selection problem, in which the principal can neither observe agents’ commitment...

Persistent link: https://www.econbiz.de/10010224783

Paid to quit

Dur, Robert A. J.; Schmittdiel, Heiner - 2015

Persistent link: https://www.econbiz.de/10011405134

Addiction to Rewards

Suvorov, Anton - 2013

The paper explores the "hidden costs of rewards" in a dynamic principal-agent framework, in which an informed principal selects in each period a reward for an agent. It shows that rewards are often addictive in that once offered, a contingent reward makes the agent expect it whenever a similar...

Persistent link: https://www.econbiz.de/10013077927

Luck, Effort and Reward in an Organisational Hierarchy

Audas, Rick; Barmby, Tim; Treble, John G. - 2000

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...

Persistent link: https://www.econbiz.de/10014150281

Variable payment schemes and productivity : do individual-based schemes really have a stronger influence than collective ones?

Jirjahn, Uwe; Mohrenweiser, Jens - 2023

While studies on individual-based and collective payment schemes are largely unconnected, there appears to be a widely held belief that individual-based schemes have a stronger influence on firm performance than collective ones. This also applies to an index of best management practices...

Persistent link: https://www.econbiz.de/10014310847

Incentives, Risk and Compensation Schemes : Experimental Evidence on the Importance of Risk Adequate Compensation

Conrad, Christian - 2023

Compensation schemes have been blamed for encouraging excess risk-taking on the part of managers within the financial … system and real economy. In general, compensation cannot decrease below the base salary, while gains from bonuses can be … limitless. The potential link between compensation and risk behavior is analyzed in this paper. A behavioral experiment with …

Persistent link: https://www.econbiz.de/10014348916

Incentives and Careers in Organizations

Gibbons, Robert S. - 2001

the discussion of incentives, I first summarize theory and evidence related to the classic agency model, which emphasizes … economics); I identify ten basic questions that merit more systematic investigation. Turning to theory, I describe building …

Persistent link: https://www.econbiz.de/10014045901