aversion, resulting in lower return investment choices. Therefore, we assess whether incentives associated with stock option …Traditional finance theory suggests that riskier investments should yield higher returns. Challenging this notion … compensation (“vega”), presumed to increase managers' appetite for risk, uniformly yield higher returns on R&D investment. Our …

research suggesting that shareholders and proxy advisors fail to consider portfolio incentives when making Say-on-Pay decisions …. It then argues that when deciding how to vote in Say-on-Pay, shareholders should consider portfolio incentives, which … advise shareholders how to vote on various matters, including Say-on-Pay – should also consider portfolio incentives when …

This paper examines the effect of tax incentives in the form of bonus depreciation on the quality of investment. Using … increasing investment quantity, as shown by prior literature, tax incentives such as bonus depreciation substantially reduce the … the expiration of tax incentives via bonus depreciation in East Germany and a representative panel of West German …

-neutral analysis of the performance volatility incentives created by investment management fee structures. This paper extends FLa in … six ways. It allows the portfolio's value to change, incorporates expected investment performance, and addresses expenses … and distributions. It also shows the impact of paying investment management performance fees from the portfolio, and …

We use a unique dataset of European performance-fee mutual funds to examine the interaction between explicit incentives … (performance fees) and implicit incentives (fund flows) of asset managers. Funds with performance fees face substantially steeper … implicit incentives compared to non-performance-fee funds. Among performance-fee funds, investors' flows depend on the …

I present a dynamic investment model in which mutual funds' inferior performance is an equilibrium response to … incentives rather than the consequence of low skills. In the model, a skilled (informed) manager responds to investors' flows …

, fund investors can suffer utility losses from delegating investment management even if the manager has specialized skill in … identifying good investment opportunities. We show that by properly re-structuring managerial compensation, both the fund manager …

flat wage and stock compensation affect the manager's investment decision. I show that the allocation is the same … risk-taking in terms of personal investment. In addition, I prove that flat wage, effectively as a riskless bond, hedges … risk and leads to more risk-taking behavior both in firm investment and personal investment …