This paper examines the association between CEO reputation and corporate capital investments. The efficient contracting hypothesis predicts a positive association between CEO reputation and wealth effects of corporate capital investments. In contrast, the rent extraction hypothesis predicts that...

This paper focuses on the effect of relative performance evaluation (RPE) on top managers’ compensation in Chinese public firms. Overall, we find no evidence of an RPE effect or any asymmetry in firms’ use of RPE. The results obtained using Albuquerque’s (2009) method are similar to those...

We examine how the managerial consumption of perquisites is determined and whether and how it impacts firm value. On the one hand, if the consumption of perks is a result of agency conflict, then it represents managerial excesses and is value-destroying. On the other hand, when the transaction...