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We propose a novel measure for workers' financial incentives based on withinestablishment wage differences among … linked workerestablishment-firm dataset that covers 31 million workers in Germany. For validation, we exploit survey … similar workers from the same occupation. This measure captures all forms of incentive pay that lead to workeremployer …
Persistent link: https://www.econbiz.de/10012297490
I develop an agency model in which performance measurement and compensation contracts are jointly used to shape … incentives. When an agent has extensive control over firm value, there tend to be many optimal measures — each implying a unique … incentives can be embedded in the measure or the contract, any distortions in one are offset by adjusting the other, which can …
Persistent link: https://www.econbiz.de/10012823241
What can employers learn from personality tests when job applicants have incentives to misrepresent themselves? Using a … within-subject, laboratory experiment, we compare personality measures with and without incentives for misrepresentation …
Persistent link: https://www.econbiz.de/10012305395
Persistent link: https://www.econbiz.de/10014443669
Persistent link: https://www.econbiz.de/10000555895
Firm Value Maximization as the objective function will guide managers in making the optimal business tradeoffs. While firm value maximization as a goal is widely accepted; not many agree on one way of achieving itTraditionally corporate performance is measured using some variant of historical...
Persistent link: https://www.econbiz.de/10013101264
An appropriate measure of corporate performance is believed to be highly correlated to firm value on one hand and should be able to signal the extent of periodic wealth creation on the other. Using a random sample of 1000 companies, this paper examines the power of select performance measures in...
Persistent link: https://www.econbiz.de/10013101266
firm size. This paper fills this hole by providing empirical evidence for a “measurement effect” in the “size effect”. In …
Persistent link: https://www.econbiz.de/10012938261
We propose a measure of managerial ability, based on managers' efficiency in generating revenues, which is available for a large sample of firms and outperforms existing ability measures. We find that our measure is strongly associated with manager fixed effects, and that the stock price...
Persistent link: https://www.econbiz.de/10013118938
measurement unit determines what distortions we will face, and thus, using different measures we may end up identifying completely …
Persistent link: https://www.econbiz.de/10011695372