Mutual fund managers' compensation packages often contain relative performance-dependent components such as year-end bonus. We examine the incentive effect of such compensation structure using a dynamic trading model with uncertain expected return and costly information. We show that relative...

Using comprehensive executive data in 5,886 U.S. firms from 2000 to 2015, I document that the promotion rate for women is 31% lower than the promotion rate for men. While sorting into executive positions in different functional areas explains a substantial portion of the promotion gap, a gap of...