"Stock-based compensation is the standard solution to agency problems between shareholders and managers. In a dynamic … managers to work harder, it also induces them to hide any worsening of the firm's investment opportunities by following largely …-valued while managers hide the bad news to shareholders. We find that a firm-specific compensation package based on both stock and …

Stock-based compensation is the standard solution to agency problems between shareholders and managers. In a dynamic … managers to work harder, it also induces them to hide any worsening of the firm's investment opportunities by following largely …-valued while managers hide the bad news to shareholders. We find that a firm-specific compensation package based on both stock and …

(performance fees) and implicit incentives (fund flows) of asset managers. Funds with performance fees face substantially steeper …

We propose a family of incentive contracts that can attract some fund managers who are favored by investors and deter … explicitly on the utilities of the managers and investors nor have a menu of choices. The contracts have two crucial components …

publicly. Results of empirical analysis based on a sample of over 3,000 US firms are consistent with the theory and demonstrate …

Mutual fund managers' compensation packages often contain relative performance-dependent components such as year …