Matches in SemOpenAlex for { <https://semopenalex.org/work/W3125876687> ?p ?o ?g. }
- W3125876687 endingPage "798" @default.
- W3125876687 startingPage "777" @default.
- W3125876687 abstract "SYNOPSIS We study equity price reactions to compensation contracting in experimental markets. Motivated by research reporting positive price reactions to adoption of performance-based compensation plans for executive managers, but postulating competing reasons as to why, we design an experiment that allows us to manipulate variables separately to examine the effect of adverse selection and moral hazard on equity prices. We find that managers select contracts based on their private information, sometimes differing from predicted choices, and that private information is conveyed to the market by the choice of compensation contract and is reflected in stock prices. We refer to this as the sorting effect. Additionally, we find that managers do not always exert costly effort in spite of favorable incentives to do so. The design also allows us to assess if the market rationally prices managers' actual choices. We find market prices are consistent with the empirically observed manager choices. Our results imply that to properly assess the impact of compensation plan on market prices, the sorting, as well as the incentive effects of compensation contracts, should be considered, and that the market anticipates errors in managers' choices. JEL Classifications: C92; D82; G12; J33; M52. Data Availability: Available upon request." @default.
- W3125876687 created "2021-02-01" @default.
- W3125876687 creator A5005717517 @default.
- W3125876687 creator A5023588310 @default.
- W3125876687 date "2015-05-01" @default.
- W3125876687 modified "2023-09-23" @default.
- W3125876687 title "Performance-Based Compensation and Firm Value—Experimental Evidence" @default.
- W3125876687 cites W1485535210 @default.
- W3125876687 cites W1486626620 @default.
- W3125876687 cites W1515809391 @default.
- W3125876687 cites W1531341052 @default.
- W3125876687 cites W1974196684 @default.
- W3125876687 cites W1977211709 @default.
- W3125876687 cites W1981809645 @default.
- W3125876687 cites W1983044690 @default.
- W3125876687 cites W1994535367 @default.
- W3125876687 cites W2011353069 @default.
- W3125876687 cites W2015007620 @default.
- W3125876687 cites W2016446483 @default.
- W3125876687 cites W2020806023 @default.
- W3125876687 cites W2045038218 @default.
- W3125876687 cites W2058901128 @default.
- W3125876687 cites W2061006503 @default.
- W3125876687 cites W2063969774 @default.
- W3125876687 cites W2069931157 @default.
- W3125876687 cites W2072119751 @default.
- W3125876687 cites W2073532071 @default.
- W3125876687 cites W2090148394 @default.
- W3125876687 cites W2090233233 @default.
- W3125876687 cites W2093834552 @default.
- W3125876687 cites W2096423350 @default.
- W3125876687 cites W2101416472 @default.
- W3125876687 cites W2117646015 @default.
- W3125876687 cites W2119729818 @default.
- W3125876687 cites W2124762038 @default.
- W3125876687 cites W2125313549 @default.
- W3125876687 cites W2128583557 @default.
- W3125876687 cites W2133802746 @default.
- W3125876687 cites W2140098888 @default.
- W3125876687 cites W2140411713 @default.
- W3125876687 cites W2143674845 @default.
- W3125876687 cites W2168041927 @default.
- W3125876687 cites W2315874136 @default.
- W3125876687 cites W2324863699 @default.
- W3125876687 cites W2554745060 @default.
- W3125876687 cites W2752617332 @default.
- W3125876687 cites W3011865677 @default.
- W3125876687 cites W3121133027 @default.
- W3125876687 cites W3122691008 @default.
- W3125876687 cites W3123108620 @default.
- W3125876687 cites W3123173048 @default.
- W3125876687 cites W3123217102 @default.
- W3125876687 cites W3123758335 @default.
- W3125876687 cites W3124256169 @default.
- W3125876687 cites W3124258145 @default.
- W3125876687 cites W3124343712 @default.
- W3125876687 cites W3125161875 @default.
- W3125876687 cites W3125641031 @default.
- W3125876687 cites W4231282061 @default.
- W3125876687 cites W4239041053 @default.
- W3125876687 cites W4244837625 @default.
- W3125876687 doi "https://doi.org/10.2308/acch-51143" @default.
- W3125876687 hasPublicationYear "2015" @default.
- W3125876687 type Work @default.
- W3125876687 sameAs 3125876687 @default.
- W3125876687 citedByCount "8" @default.
- W3125876687 countsByYear W31258766872012 @default.
- W3125876687 countsByYear W31258766872013 @default.
- W3125876687 countsByYear W31258766872018 @default.
- W3125876687 countsByYear W31258766872020 @default.
- W3125876687 countsByYear W31258766872022 @default.
- W3125876687 crossrefType "journal-article" @default.
- W3125876687 hasAuthorship W3125876687A5005717517 @default.
- W3125876687 hasAuthorship W3125876687A5023588310 @default.
- W3125876687 hasBestOaLocation W31258766872 @default.
- W3125876687 hasConcept C105795698 @default.
- W3125876687 hasConcept C111696304 @default.
- W3125876687 hasConcept C11171543 @default.
- W3125876687 hasConcept C144133560 @default.
- W3125876687 hasConcept C154945302 @default.
- W3125876687 hasConcept C15744967 @default.
- W3125876687 hasConcept C162324750 @default.
- W3125876687 hasConcept C175444787 @default.
- W3125876687 hasConcept C17744445 @default.
- W3125876687 hasConcept C199360897 @default.
- W3125876687 hasConcept C199539241 @default.
- W3125876687 hasConcept C199728807 @default.
- W3125876687 hasConcept C2780023022 @default.
- W3125876687 hasConcept C2780202544 @default.
- W3125876687 hasConcept C29122968 @default.
- W3125876687 hasConcept C32252159 @default.
- W3125876687 hasConcept C33923547 @default.
- W3125876687 hasConcept C41008148 @default.
- W3125876687 hasConcept C70437156 @default.
- W3125876687 hasConcept C99221444 @default.
- W3125876687 hasConceptScore W3125876687C105795698 @default.
- W3125876687 hasConceptScore W3125876687C111696304 @default.
- W3125876687 hasConceptScore W3125876687C11171543 @default.