Arbeitspapier
Managerial Compensation Duration and Stock Price Manipulation
I build a model of optimal managerial compensation where managers each have a privately observed propensity to manipulate short-term stock prices. It is shown that this informational asymmetry reverses some of the conventional wisdom about the relationship between reliance on short-term pay and propensity to manipulate. The optimal compensation scheme features a negative relationship between pay duration and manager manipulation activity, reconciling theory with recent empirical findings (Gopalan et al., 2014). Further, the model predicts that managers who spend more resources manipulating short-term stock prices also put more effort into generating longterm firm value.
- Sprache
-
Englisch
- Erschienen in
-
Series: Bank of Canada Working Paper ; No. 2015-25
- Klassifikation
-
Wirtschaft
Asymmetric and Private Information; Mechanism Design
Information and Market Efficiency; Event Studies; Insider Trading
Corporate Finance and Governance: General
Personnel Management; Executives; Executive Compensation
- Thema
-
Labour markets
Economic models
Recent economic and financial developments
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Schroth, Josef
- Ereignis
-
Veröffentlichung
- (wer)
-
Bank of Canada
- (wo)
-
Ottawa
- (wann)
-
2015
- DOI
-
doi:10.34989/swp-2015-25
- Handle
- Letzte Aktualisierung
-
20.09.2024, 08:24 MESZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Schroth, Josef
- Bank of Canada
Entstanden
- 2015
Ähnliche Objekte (12)
Outside investor access to top management: Market monitoring versus stock price manipulation
How long does it take you to pay? A duration study of canadian retail transaction payment times
The international experience with negative policy rates
Why do central banks make public announcements of open market operations?
A tractable monetary model under general preferences
Canadian financial stress and macroeconomic conditions
Multiple fixed effects in binary response panel data models
Government and Private E-Money-Like Systems: Federal Reserve Notes and National Bank Notes
Producer heterogeneity, value-added, and international trade
On the tail risk premium in the oil market
The impact of sovereign wealth funds on international financial stability
Interpreting volatility shocks as preference shocks
Outside investor access to top management: Market monitoring versus stock price manipulation
How long does it take you to pay? A duration study of canadian retail transaction payment times
The international experience with negative policy rates
Why do central banks make public announcements of open market operations?
A tractable monetary model under general preferences
Canadian financial stress and macroeconomic conditions
Multiple fixed effects in binary response panel data models
Government and Private E-Money-Like Systems: Federal Reserve Notes and National Bank Notes
Producer heterogeneity, value-added, and international trade
On the tail risk premium in the oil market
The impact of sovereign wealth funds on international financial stability
Interpreting volatility shocks as preference shocks
Outside investor access to top management: Market monitoring versus stock price manipulation
How long does it take you to pay? A duration study of canadian retail transaction payment times
The international experience with negative policy rates
Why do central banks make public announcements of open market operations?
A tractable monetary model under general preferences
Canadian financial stress and macroeconomic conditions
Multiple fixed effects in binary response panel data models
Government and Private E-Money-Like Systems: Federal Reserve Notes and National Bank Notes
Producer heterogeneity, value-added, and international trade
On the tail risk premium in the oil market
The impact of sovereign wealth funds on international financial stability