This study provides evidence regarding the importance boards of directors place on effective communication with the investor community by examining whether CEO and CFO compensation are related to the quality of the firm's financial disclosures. Using an index derived from analyst forecast...

Efficient contracting predicts that ex-ante severance pay contracts are offered to CEOs as protection against downside risk and to encourage investment in risky positive net-present-value projects. Consistent with this prediction, we find that ex-ante contracted severance pay is positively...

We study the role of explicit and implicit incentives in a competitive labor market with no internal promotion opportunities. We find that explicit incentives explain only a small fraction of the total incentives, as the likelihood of new employment and renegotiation of current employment on...