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- W2853643902 abstract "We study non-contractible intangible investment in a dynamic agency model with multitasking. The manager’s short-term task determines current performance, which deteriorates with investment in the firm’s future profitability, his long-term task. The optimal contract dynamically balances incentives for short- and long-term performance. Investment is distorted upwards (downwards) relative to first-best in firms with high (low) returns to investment. These distortions decrease as good performance relaxes endogenous financial constraints, implying negative (positive) investment-cash flow sensitivities. Our results shed light on how corporate investment policies, liquidity management, and executive compensation structure differ across industries with different returns to intangible investment." @default.
- W2853643902 created "2018-07-19" @default.
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- W2853643902 date "2021-11-01" @default.
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- W2853643902 title "Dynamic multitasking and managerial investment incentives" @default.
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- W2853643902 doi "https://doi.org/10.1016/j.jfineco.2021.06.027" @default.
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