Download or read book Management Team Incentive Dispersion and Firm Performance written by Robert M. Bushman and published by . This book was released on 2016 with total page 57 pages. Available in PDF, EPUB and Kindle. Book excerpt: Recent theory suggests that firms incorporate synergistic interrelationships among executives into optimal incentive design (Edmans et al. 2013). We focus on Pay Performance Sensitivities (PPS) and use dispersion in PPS across top executives as a proxy for the incentive design component shaped by an executive team's synergy profile. We model optimal PPS dispersion and use residuals from this model to measure deviations from optimal. We find that firm performance is increasing (decreasing) in the residual when PPS dispersion is too low (too high). We conjecture that deviations from optimal are sustained by adjustment costs, finding that firms only close around 60% of the gap between target and actual PPS dispersion over the subsequent year. Viewing a team's equity grants as a vector, we provide evidence that firms use subsequent equity grants to actively manage PPS dispersion towards optimality. Cross-sectional analysis reveals that the deleterious effect of deviations from optimal is decreasing in the duration of a team's tenure together, and increasing in the importance of effort coordination across team members for firm performance.

Download or read book Top Management Team Pay Dispersion written by Marilou Rozé Bianchi and published by . This book was released on 2017 with total page 72 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper explores TMT pay dispersion in lone founder firms. The scarcity of the literature on this topic provides an opportunity to study the influence of extra- and intra-organizational factors on TMT pay dispersion. Knowing that high pay dispersion hurts firm performance, it is important to understand its antecedents. Based on panel data analyses of all S&P500 firms from 2008-2013, my results demonstrate that lone founder firms exhibit less pay dispersion than other firms. It seems that when founders are present on their firms’ board of directors, the effective monitoring of firm managers makes it redundant to offer the latter high incentive pay that would fuel pay dispersion. Regarding extra-organizational factors, recession appears to increase TMT pay dispersion, particularly in lone founder firms – possibly because lone founder firms regularly use attractive pay packages to hire talent from competitors during economic downturns and thereby foster pay dispersion. Finally, high-tech industries are negatively related to pay dispersion. The complexity of managerial tasks in such industries makes it necessary to pay all (rather than some) managers relatively high compensation, limiting pay dispersion.

Download or read book The Handbook of the Economics of Corporate Governance written by Benjamin Hermalin and published by Elsevier. This book was released on 2017-09-18 with total page 762 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Handbook of the Economics of Corporate Governance, Volume One, covers all issues important to economists. It is organized around fundamental principles, whereas multidisciplinary books on corporate governance often concentrate on specific topics. Specific topics include Relevant Theory and Methods, Organizational Economic Models as They Pertain to Governance, Managerial Career Concerns, Assessment & Monitoring, and Signal Jamming, The Institutions and Practice of Governance, The Law and Economics of Governance, Takeovers, Buyouts, and the Market for Control, Executive Compensation, Dominant Shareholders, and more. Providing excellent overviews and summaries of extant research, this book presents advanced students in graduate programs with details and perspectives that other books overlook. - Concentrates on underlying principles that change little, even as the empirical literature moves on - Helps readers see corporate governance systems as interrelated or even intertwined external (country-level) and internal (firm-level) forces - Reviews the methodological tools of the field (theory and empirical), the most relevant models, and the field's substantive findings, all of which help point the way forward

Download or read book The Cross Disciplinary Perspectives of Management written by Yaakov Weber and published by Emerald Group Publishing. This book was released on 2019-11-29 with total page 224 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides cross-disciplinary management research that integrates theories, concepts, and perspectives from two or more scientific disciplines. It aims to resolve complex theoretical problems within multiple industries, fields and areas of management including mergers, SMEs, hospitality, and healthcare.

Download or read book Social Norms in Managerial Decision Making Psychological and or Neural Perspectives written by Xile Yin and published by Frontiers Media SA. This book was released on 2023-02-03 with total page 206 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Handbook of Research Methods for Corporate Governance written by Nicola Cucari and published by Edward Elgar Publishing. This book was released on 2023-01-20 with total page 371 pages. Available in PDF, EPUB and Kindle. Book excerpt: This Handbook provides an incisive, rigorous and contemporary guide to research methods in the continually evolving area of corporate governance, offering a welcome focus on holistic approaches to research. Not only analysing existing research methods dominated by the quantitative-qualitative dichotomy, it also explores the crucial need to challenge assumptions and methodologies in order to advance research in the field.

Download or read book Incentives for Helping on the Job written by Gerald T. Garvey and published by . This book was released on 1998 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Recent advances in incentive theory stress the multi- dimensional nature of agent effort and specifically cases where workers affect one another's performance through "helping" efforts. This paper models helping efforts as determined by the compensation package and task allocation. The model is tested with Australian evidence on reported helping efforts within workgroups. The evidence consistently supports the hypothesis that helping efforts are reduced, while individual efforts are increased, when promotion incentives are strong. Piece rates and profit-sharing appear to have little effect on helping efforts. Contrary to the predictions of some recent theoretical models, task variety and helping efforts are positively correlated.

Download or read book Managing through Incentives written by Richard B. McKenzie and published by Oxford University Press. This book was released on 1998-09-24 with total page 348 pages. Available in PDF, EPUB and Kindle. Book excerpt: Incentives are the most powerful tools executives can use to improve worker performance. This is particularly true in today's empowered workplace, where incentives can ensure that workers apply their initiative toward company goals. Now, in this groundbreaking book, Richard McKenzie and Dwight Lee show how to select the right incentives and how to use them for best results. Generously illustrated with examples from business, industry, government, academia, and professional sports, this superb volume offers a comprehensive overview of incentives, both in theory and in practice, providing a wealth of ideas managers can use to get employees to work harder, smarter, and more cooperatively. Much of the book is quite eye-opening. For instance, while McKenzie and Lee recognize that money is the prime motivator, they urge managers not to overlook the power of non-monetary incentives, carefully evaluating such motivators as fringe benefits, psychological incentives, education, and training. And they examine a host of other issues, including how to take advantage of executive "overpayment" to increase profits; the limits of piece-rate and other pay-for-performance schemes; finding the right balance between current pay and a more generous pension plan; the value of tough bosses; and hostile takeovers as a form of managerial incentive. How workers are rewarded is often more important than how much they are rewarded, say the authors. The job of good managers is getting the incentives right. Managing Through Incentives shows managers how to apply proven motivators to help any size firm energize the work force, increase its profits, and meet the awesome challenges of today's fiercely competitive global economy.

Download or read book Understanding High powered Incentives in Organizations written by Shuo Zheng (S.M.) and published by . This book was released on 2018 with total page 62 pages. Available in PDF, EPUB and Kindle. Book excerpt: I study how the compensation structure of top managers from US public companies changes in recent years and the effect of these incentives on firm performance. I first explore the trend of executive compensation structure and performance metrics used in executive compensation over the years. I also examine systematic differences across industries and different firm sizes. Then I analyze the relationship between compensation structure and firm performance. My results suggest that a higher level of incentive-based compensation correlates with higher growth in total shareholder return; particularly for small firms, a higher level of incentive-based compensation correlates with significantly higher total asset growth, sales growth and employment growth as well. To explore whether the level of incentive-based compensation has influence on firm performance, I use propensity score matching to reduce selection bias. My results suggest that the level of incentive-based compensation has no significant influence on firm performance.

Download or read book The Routledge Companion to Accounting in China written by Haiyan Zhou and published by Routledge. This book was released on 2018-10-10 with total page 298 pages. Available in PDF, EPUB and Kindle. Book excerpt: There is increasing interest in accounting issues in China. Despite a relatively short history, China's stock market is the world's second largest. This growth has been accompanied by increasing demand for accounting information alongside reforms of accounting and auditing rules, as international investors have paid increasing attention to investment opportunities in this dynamic and energetic country with a large population and economic growth potentials. Despite this, at present there are few books which offer students, academics and practitioners a comprehensive guide to current accounting issues in China. The Routledge Companion to Accounting in China fills this important gap in the literature. The volume is organized in six thematic sections which cover capital market and corporate finance, financial accounting, managerial accounting, auditing, taxation and internal controls. The structure is intended to reflect the increasing diversity of contemporary accounting issues in China, including a balanced overview of current knowledge, identifying issues and discussing relevant debates. This book is a prestigious reference work which offers students, academics and practitioners an introduction to current accounting issues in the emerging market of China.

Download or read book Compensation written by Barry Gerhart and published by SAGE. This book was released on 2003-05-07 with total page 320 pages. Available in PDF, EPUB and Kindle. Book excerpt: `Gerhart and Rynes provide a thorough, comprehensive review of the vast literatures relevant to compensation. Their insights regarding the integration of economic, psychological and management perspectives are particularly enlightening. This text provides an invaluable tool for those interested in advancing our understanding of compensation practices' - Alison Barber, Eli Broad College of Business, Michigan State UniversityCompensation provides a comprehensive, research-based review of both the determinants and effects of compensation. Combining theory and research from a variety of disciplines, authors Barry Gerhart and Sara Rynes examine the three major compensation decisions - pay level, pay structure and pay delivery systems.Revealing the impact of different compensation policies, this interdisciplinary volume examines: the relationship between performance-based pay and intrinsic motivation; implications of individual pay differentials for team or unit performance; the consequences of pay for performance policies; effect sizes and practical significance of compensation findings; and directions for future research.Compensation considers why organizations pay people the way they do and how various pay strategies influence the success of organizations. Critically evaluating areas where research is inconsistent with common beliefs, Gerhart and Rynes explore the motivational effects of compensation.Primarily intended for graduate students in human resource management, psychology, and organizational behaviour courses, this book is also an invaluable reference for compensation management consultants and organizational development specialists.

Download or read book Generation to Generation written by Kelin E. Gersick and published by Harvard Business Press. This book was released on 1997 with total page 316 pages. Available in PDF, EPUB and Kindle. Book excerpt: Generation to Generation will help managers understand the special dynamics & challenges that family businesses face as they move through their life cycles. It explains how to handle succession, & the role of non-family professionals.

Download or read book Strategic Leadership written by Sydney Finkelstein and published by Strategic Management. This book was released on 2009 with total page 480 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book integrates and assesses the vast and rapidly growing literature on strategic leadership, which is the study of top executives and their effects on organizations. The basic premise is that in order to understand why organizations do the things they do, or perform the way they do, we need to deeply comprehend the people at the top-- their experiences, abilities, values, social connections, aspirations, and other human features. The actions--or inactions--of a relatively small number of key people at the apex of an organization can dramatically affect organizational outcomes. The scope of strategic leadership includes individual executives, especially chief executive officers (CEOs), groups of executives (top management teams, or TMTs); and governing bodies (particularly boards of directors). Accordingly, the book addresses an array of topics regarding CEOs (e.g., values, personality, motives, demography, succession, and compensation); TMTs (including composition, processes, and dynamics); and boards of directors (why boards look and behave the way they do, and the consequences of board profiles and behaviors). Strategic Leadership synthesizes what is known about strategic leadership and indicates new research directions. The book is meant primarily for scholars who strive to assess and understand the phenomena of strategic leadership. It offers a considerable foundation on which professionals involved in executive search, compensation, appraisal and staffing, as well as board members who evaluate executive performance and potential, might build their tools and perspectives.

Download or read book Complex Compensation Empirical Essays on the Impact of Compensation Design on Firm Performance Turnover and Organizational Justice written by Tobias Oberpaul and published by BoD – Books on Demand. This book was released on 2024-01-19 with total page 202 pages. Available in PDF, EPUB and Kindle. Book excerpt: Compensation contracts have become ever more complex and individualized, particularly in the executive compensation domain, where increasingly diverse stakeholder demands and governance requirements have led to the inclusion of more and increasingly interrelated components into compensation contracts. Even the compensation of lower-level employees has become complex as firms individualize employee compensation and use many different rewards simultaneously. Research has examined elements of compensation in isolation but has attempted to avoid the complexities of compensation. This dissertation examines the consequences of compensation complexity and compensation design dispersion and contributes to a better understanding of compensation and its consequences for firms and employees. The first study examines how the complexity of executive compensation contracts affects firm performance. It finds that CEO compensation complexity negatively affects accounting, market, and ESG (i.e., environmental, social, and governance) metrics of firm performance and explores mechanisms that help explain the relationships. The second study examines the effect of compensation design dispersion within top management teams and its impact on executive turnover. The results show that compensation design dispersion affects executive turnover, both directly and in interaction with relative pay level. The third study addresses the role of compensation design dispersion in the development of procedural justice perceptions. Using two experiments, this study shows that compensation design dispersion causes lower procedural justice perceptions, which appears to be less problematic for participants with relatively easier to understand contracts. In summary, this dissertation provides a nuanced overview of complex compensation design and compensation design dispersion. The findings contribute to a better understanding of the effectiveness of compensation as an incentive and sorting tool for organizations, and of the implications of compensation design for the functioning of teams.

Download or read book Management Incentives and Firm Performance Under Three Different Control Conditions written by William A. McEachern and published by . This book was released on 1975 with total page 410 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Compensation and Organizational Performance written by Luis R. Gomez-Mejia and published by Routledge. This book was released on 2014-12-18 with total page 366 pages. Available in PDF, EPUB and Kindle. Book excerpt: This up-to-date, research-oriented textbook focuses on the relationship between compensation systems and firm overall performance. In contrast to more traditional compensation texts, it provides a strategic perspective to compensation administration rather than a functional viewpoint. The text emphasizes the role of managerial pay, its importance, determinants, and impact on organizations. It analyzes recent topics in executive compensation, such as pay in high technology firms, managerial risk taking, rewards in family companies, and the link between compensation and social responsibility and ethical issues, among others. The authors provide a thorough and comprehensive review of the vast literatures relevant to compensation and revisit debates grounded in different theoretical perspectives. They provide insights from disciplines as diverse as management, economics, sociology, and psychology, and amplify previous discussions with the latest empirical findings on compensation, its dynamics, and its contribution to firm overall performance.

Download or read book Research in Personnel and Human Resources Management written by M. Ronald Buckley and published by Emerald Group Publishing. This book was released on 2014-06-04 with total page 321 pages. Available in PDF, EPUB and Kindle. Book excerpt: Volume 32 of Research in Personnel and Human Resources Management (RPHRM) contains seven papers on important issues in the field of human resources management. The subject matter in this volume covers myriad areas: compensation, performance evaluation, reputation, employee furloughs, and research methodology.