Since the mid-1980s many authors have investigated the influence of information technology (IT) on productivity. Until recently there has been no clear evidence that productivity increases as a result of IT spending. This productivity paradox is partly due to the difficulty in correctly...

We investigate whether uncertainty in CEO compensation influences the firm's investment decisions. We use panel data on compensation to estimate CEO income uncertainty and cross-sectional investment data to measure capital investment. Given the prospect of bearing extra risk, a rational agent...