We examine the association between managers' expertise and their discretionary bonus decisions in a hospital setting. We hypothesize that high-expertise managers make decisions that encourage cooperation among their subordinates. However, low-expertise managers cannot do so because their lower...

Economics, social psychology, and management studies suggest that group identity plays an important role in directing employee behaviors. On the one hand, strong group identity could motivate high effort by resolving conflicts of interests in the workplace. On the other hand, it could encourage...

We investigate how a compensation committee's peer-specific knowledge affects its ability to implement relative performance evaluations (RPE) in CEO compensation. Peer-specific knowledge refers to information about internal operations of (potential) peer firms. We predict that peer-specific...