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The percentage of S&P 500 firms using multi-year accounting-based performance (MAP) incentives to CEOs increased from 16.5% in 1996 to 43.3% in 2008. The use and design of MAP incentives depend on the signal quality of accounting vs. stock performance, shareholder horizons, strategic...
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the latter half of the 1990s. Far from rejecting the optimal incentive contracting theory of executive compensation, the … recent evidence on executive pay can be reconciled with classical agency theory once one expands the framework to allow for …
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We provide evidence that CEO equity incentives, especially stock options, influence stock liquidity risk via information disclosure quality. We document a negative association between CEO options and the quality of future managerial disclosure policy. Contributing to the literature on CEO...
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