in that value. To the extent earnings differentially captures managers’ effort toward desire tasks, contracting theory … contracts as its contracting usefulness changes over time. Our results suggest that although some contract evolution occurs, it … often lacks timeliness. We find that boards often rely on contracting decisions made in prior periods, suggesting evidence …

settings, including the design of profit-maximizing auctions and durable-good selling mechanisms for buyers whose values follow … an AR(k) process. -- asymmetric information ; stochastic processes ; incentives …

and assess the implications of such targets for managerial incentives. We find that high-profitability firms commonly …