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We offer evidence that the use of Relative Performance Evaluation (RPE) in CEOs' incentive contracts influences the effect of risk-taking incentives on both the magnitude and composition of firm risk. We find that when the incentive design lacks RPE features, the incentive portfolio vega...
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We offer evidence that the use of Relative Performance Evaluation (RPE) in CEOs' incentive contracts influences the effect of risk-taking incentives on both the magnitude and composition of firm risk. We find that when the incentive design lacks RPE features, the incentive portfolio vega...
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This instructional case examines quantitative and qualitative information in the decision to acquire a franchise store of a Gourmet Deli chain. In particular, it illustrates to students how commonly requested quantitative information in practice, such as an income statement, needs to be tailored...
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