Industry Structure, Executive Pay, and Short-Termism

Published Online:https://doi.org/10.1287/mnsc.1120.1601

References

  • Acharya VV, Volpin PF. Corporate governance externalities. Rev. Finance (2010) 14:1–33CrossrefGoogle Scholar
  • Ausubel LM, Cramton P. Auctioning many divisible goods. J. Eur. Econom. Assoc. (2004) 2:480–493CrossrefGoogle Scholar
  • Ausubel LM, Cramton P, Milgrom P, Cramton P, Shoham Y, Steinberg R. The clock-proxy auction: A practical combinatorial auction design. Combinatorial Auctions (2006) (MIT Press, Cambridge, MA) 115–138Chap. 5Google Scholar
  • Baker G, Hall B. CEO incentives firm size. J. Labor Econom. (2004) 22:767–798CrossrefGoogle Scholar
  • Bebchuk L, Fried J. Pay Without Performance—The Unfulfilled Promise of Executive Compensation (2004) (Harvard University Press, Cambridge, MA) Google Scholar
  • Bergstresser D, Philippon T. CEO incentives earnings management. J. Financial Econom. (2006) 80:511–529CrossrefGoogle Scholar
  • Bhagat S, Romano R. Reforming executive compensation: Focusing committing to the long-term. Yale J. Regulation (2009) 26:359–372Google Scholar
  • Biais B, Casamatta C. Optimal leverage aggregate investment. J. Finance (1999) 54:1291–1323CrossrefGoogle Scholar
  • Biais B, Mariotti T, Rochet J-C, Villeneuve S. Large risks, limited liability dynamic moral hazard. Econometrica (2010) 78:73–118CrossrefGoogle Scholar
  • Bolton P, Scheinkman J, Xiong W. Executive compensation and short-termist behaviour in speculative markets. Rev. Econom. Stud. (2006) 73:577–610CrossrefGoogle Scholar
  • Burns N, Kedia S. The impact of performance-based compensation on misreporting. J. Financial Econom. (2006) 79:35–67CrossrefGoogle Scholar
  • Cheng I-H, Hong H, Scheinkman J. Yesterday's heroes: Compensation and creative risk-taking. (2010) . NBER Working Paper 16176, National Bureau of Economic Research, Cambridge, MAGoogle Scholar
  • Cooley T, Prescott E, Cooley T. Economic growth and business cycles. Frontiers in Business Cycle Research (1995) (Princeton University Press, Princeton, NJ) 1–38Google Scholar
  • DeMarzo PM, Fishman MJ. Optimal long-term financial contracting. Rev. Financial Stud. (2007) 20:2079–2128CrossrefGoogle Scholar
  • DeMarzo PM, Sannikov Y. Optimal security design and dynamic capital structure in a continuous-time agency model. J. Finance (2006) 61:2681–2724CrossrefGoogle Scholar
  • Edmans A. Short-term termination without deterring long-term investment: A theory of debt and buyouts. J. Financial Econom. (2011) 102:81–101CrossrefGoogle Scholar
  • Edmans A, Gabaix X. The effect of risk on the CEO market. Rev. Financial Stud. (2011) 24:2822–2863CrossrefGoogle Scholar
  • Edmans A, Gabaix X, Landier A. A multiplicative model of optimal CEO incentives in market equilibrium. Rev. Financial Stud. (2009) 22:4881–4917CrossrefGoogle Scholar
  • Edmans A, Gabaix X, Sadzik T, Sannikov Y. Dynamic CEO compensation. J. Finance (2012) 67:1603–1647CrossrefGoogle Scholar
  • Fahlenbrach R, Prilmeier R, Stulz RM. This time is the same: Using bank performance in 1998 to explain bank performance during the recent financial crisis. (2011) . NBER Working Paper 17038, National Bureau of Economic Research, Cambridge, MAGoogle Scholar
  • Foster DP, Young HP. Gaming performance fees by portfolio managers. Quart. J. Econom. (2010) 125:1435–1458CrossrefGoogle Scholar
  • Froot K, Perold A, Stein J. Shareholder trading practices and corporate investment horizons. J. Appl. Corporate Finance (1992) 5:42–58CrossrefGoogle Scholar
  • Gabaix X, Landier A. Why has CEO pay increased so much? Quart. J. Econom. (2008) 123:49–100CrossrefGoogle Scholar
  • Gala V, Julio B. Convergence in corporate investments. (2011) . Working paper, London Business School, LondonGoogle Scholar
  • Gopalan R, Milbourn T, Song F, Thakor A. The optimal duration of executive compensation: Theory and evidence. (2010) . Working paper, Olin Business School, Washington University in St. Louis, St. LouisGoogle Scholar
  • Goldman E, Slezak S. An equilibrium model of incentive contracts in the presence of information manipulation. J. Financial Econom. (2006) 80:603–626CrossrefGoogle Scholar
  • Gümbel A. Trading on short-term information. J. Institutional Theoret. Econom. (2005) 161:428–452CrossrefGoogle Scholar
  • Harrison G, Lau M, Williams M. Estimating individual discount rates in Denmark: A field experiment. Amer. Econom. Rev. (2002) 92:1606–1617CrossrefGoogle Scholar
  • He Z. Dynamic compensation contracts with private savings. Rev. Financial Stud (2012) 25:1494–1549CrossrefGoogle Scholar
  • Inderst R, Pfeil S. Securitization and compensation in financial institutions. Rev. Finance (2012) . ePub ahead of print November 21, http://rof.oxfordjournals.org/content/early/2012/11/20/rof.rfs032.short?rss=1Google Scholar
  • Landier A, Sraer D, Thesmar D. Going for broke: New Century Financial Corporation, 2004–2006. (2010) . IDEI Working Paper 649, Institut d'Économie Industrielle, Toulouse, FranceGoogle Scholar
  • Laux V. Stock option vesting conditions, CEO turnover, and myopic investment. J. Financial Econom. (2012) 106:513–526CrossrefGoogle Scholar
  • Milgrom P. Putting auction theory to work: The simultaneous ascending auction. J. Political Econom. (2000) 108:245–272CrossrefGoogle Scholar
  • Peng L, Roell A. Managerial incentives and stock price manipulation. (2011) . Working paper, Baruch College, City University of New York, New YorkGoogle Scholar
  • Rosen S, Werin L, Wijkander H. Contracts and the market for executives. Contract Economics (1992) (Blackwell, Cambridge, MA) 181–211Google Scholar
  • Stein JC. Efficient capital markets, inefficient firms: A model of myopic corporate behavior. Quart. J. Econom. (1989) 104:655–669CrossrefGoogle Scholar
  • Tehranian H, Travlos NG, Waegelein JF. Management compensation contracts and merger-induced abnormal returns. J. Accounting Res. (1987a) 25:51–76CrossrefGoogle Scholar
  • Tehranian H, Travlos NG, Waegelein JF. The effect of long-term performance plans on corporate sell-off-induced abnormal returns. J. Finance (1987b) 42:933–942CrossrefGoogle Scholar
  • Terviö M. The difference that CEOs make: An assignment model approach. Amer. Econom. Rev. (2008) 98:642–688CrossrefGoogle Scholar
  • Thanassoulis J. Bankers' pay structure and risk. (2011) . Working Paper 545, University of Oxford, Oxford, UKGoogle Scholar
  • Thanassoulis J. The case for intervening in bankers' pay. J. Finance (2012) 67:849–895CrossrefGoogle Scholar
  • Von Thadden E-L. Long-term contracts, short-term investment and monitoring. Rev. Econom. Stud. (1995) 62:557–575CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.