We study the relationship between CEO pay-performance sensitivity, pay-risk sensitivity, and shareholder voting outcomes as part of the "say-on-pay" provision of the 2010 U.S. Dodd-Frank Act. Consistent with our hypothesis, we provide evidence that shareholders tend to approve of compensation...

In management, incentives are a reward to motivate people and create favorable conditions directed to achieve specific goals and support organizational development. This conceptual paper analyses differences between intrinsic and extrinsic incentives to suggest management implications directed...

I develop an agency model in which performance measurement and compensation contracts are jointly used to shape incentives. When an agent has extensive control over firm value, there tend to be many optimal measures — each implying a unique optimal contract with a strikingly simple closed form...

This paper seeks to explore how an agent's incentives to perform influences her performance. We analyze this question in a simple principal-agent model, where the agent chooses how much effort to invest and which project to implement. We show that the relationship between the incentives to...

This paper examines how physicians respond to financial incentives in China. Faced with the requirement to lower drug expenditure as a percentage of the total medical expenditure, physicians increased non-drug expenditure in addition to decreasing drug expenditure, keeping the total expenditure...

Employees often learn about their ability while working, and the resulting beliefs interact with pay incentives to shape employment outcomes. This paper investigates this issue within a model that incorporates learning about ability on the job, dynamic selection, effort, and variation in pay...