We view audit‐quality choice as one among many that managers make to maximize firm value. We question whether audit‐quality differences among publicly traded companies are of significant interest to investors, clients, and auditors and ask for research on this topic. Relatedly, we ask for...

We view audit-quality choice as one among many that managers make to maximize firm value. We question whether audit-quality differences among publicly traded companies are of significant interest to investors, clients, and auditors and ask for research on this topic. Relatedly, we ask for...

We document the propensity of Standard & Poor's 500 index companies to just meet, rather than overshoot or just miss, performance targets in CEOs' annual incentive plans to boost cash bonuses. The statistical anomaly occurs only in the 4th quarter and is robust to alternative assumptions of...

This paper documents the performance metrics used in annual incentive (bonus) plans for chief executive officers (CEOs). Our detailed analysis using earnings per share (EPS) shows that at the time of plan approval, in general, EPS growth targets are set lower than earnings expectations such as...

Using two randomized field experiments, we examine how warning borrowers that their loan performance will be reported to a public credit registry affects their loan take-up and repayment decisions. We show that credit warnings increase loan take-up rates. Reducing incumbent lenders'...

Performance share plans are an increasingly important component of executive compensation. They are equity-based, long-term incentive plans where the number of shares to be awarded is a quasi-linear function of a performance result over a fixed time period. We derive closed-form formulas for the...