Using car dealership data, we examine the relevance of forward-looking (FL) and contemporaneous (CO) measures for pay-for-performance incentives (bonus, annual raise, promotions) for long-horizon employees. Economic models suggest that while contracts with FL performance measures mitigates the...

Understanding an organization's incentive design requires that researchers collectively examine all forms of incentive instruments, namely, bonus, merit raise, and promotion, since these are common components of an incentive structure. Prior research on the weighting of performance measures...

We investigate how geographic distance relates to corporate investment decisions (i.e., investment location and ownership structure choices), using a setting of Taiwanese firms' investment in mainland China. We measure geographic distance as travel time between parent firms (in Taiwan) and...

This paper propose a new panel stochastic dominance (SD) test-PDD test, the asymptotic properties are derived, which extends Davidson and Duclos (DD) SD test to a panel context. The PDD test also contributes to settle one of the demerits while working with financial derivatives time series: that...