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We investigate the role of Relative Performance Evaluation (RPE) theory in CEO pay and turnover using a product similarity-based definition of peers (Hoberg and Phillips 2016). RPE predicts that firms filter out common shocks (i.e., those affecting the firm and its peers) while evaluating CEO...
Persistent link: https://www.econbiz.de/10011807920
We offer evidence that the use of Relative Performance Evaluation (RPE) in CEOs' incentive contracts influences the effect of risk-taking incentives on both the magnitude and composition of firm risk. We find that when the incentive design lacks RPE features, the incentive portfolio vega...
Persistent link: https://www.econbiz.de/10012997638
level. This research proposal argues that RPE needs also to be studied at lower echelons. Amongst business unit-managers, we … standards, targets are less easily influenced by the managers whose compensation depends on them. This extends the …
Persistent link: https://www.econbiz.de/10014050435
expect a firm’s decision to tailor performance measurement between top management and middle managers to be driven by this …This study examines the determinants of performance measurement tailoring between top management and middle managers in … management and middle managers respectively, it may reduce the incentives for the two parties to coordinate with each other. We …
Persistent link: https://www.econbiz.de/10014032498
This study aims to explore the relationship between informal social relations between top-managers and the … network theory, I argue that when TMT members are networked by interpersonal ties, this would provide top managers with easier …
Persistent link: https://www.econbiz.de/10014032635
This paper studies a principal's preference for an aggregate measure of performance of a team, when team members may have superior information about productivity. One agent can be designated a leader with private access to information, or both agents have either equal or no access to private...
Persistent link: https://www.econbiz.de/10014038794
This paper examines the reliance on ESG metrics in executive compensation contracts. In our sample of international publicly traded firms, a rapidly growing fraction incorporate ESG metrics in the compensation schemes of their top executives. Our analysis links the reliance on these metrics to...
Persistent link: https://www.econbiz.de/10013435292
backgrounds of top managers, such as their academic achievements and job experience, have a strong effect on the enhancement of … results show that nonprofit top managers with extensive experience tend to use detailed financial performance measurement … systems when their organization is in financial difficulty. On the other hand, top managers with medical/welfare degrees tend …
Persistent link: https://www.econbiz.de/10014086437
questionnaire responses from 751 top executives and middle managers in small and medium enterprises, we find that SPE is negatively …
Persistent link: https://www.econbiz.de/10014087849
Managers like to think well of themselves, and of the firms that employ them. However, positive illusions can bias a …, we first study the natural benchmark equilibrium provided by unbiased decision makers. We then introduce self …-serving behavior in the presence of myopic principals, or of forward-looking principals who anticipate the limitations of managers and …
Persistent link: https://www.econbiz.de/10010341101