Peer firms in relative performance evaluation

Choosing the Right Performance Peer Group

While there is no hard-and-fast rule for how many peers should be in a performance peer group, relative performance measures are more volatile ...

Common Ownership, Competition, and Top Management Incentives

Albuquerque, Ana, “Peer firms in relative performance evaluation,” Journal of Accounting and Eco- nomics, 2009, 48 (1), 69–89. , “Do Growth ...

The dual role of peer groups in executive pay: Relative performance ...

If the peer group effect is strong, it can be optimal to evaluate the agent on her own firm performance only. If the relative performance ...

RPM: Building a better productivity metric and providing a new way ...

A new metric, the relative performance measure, offers a better way to evaluate lawyers' contributions to their firms' financial ...

Relative Versus Absolute Performance Evaluation and CEO ...

Our main finding is that relative performance evaluation (RPE) plans provide incentives for CEOs to make decisions that generate more idiosyncratic performance ...

Relative Performance Evaluation, Sabotage and Collusion - CRESSE

We further examine whether, among RPE users, cartel firms construct more economically simi- lar peer groups. In constructing a benchmark, firms face a trade-off ...

peer selection – The FinReg Blog - Sites@Duke Express

... performance relative to peer firms, compared to ... peer group opportunity, peer selection, relative performance evaluation, research, RPE.

Product Market Peers and Relative Performance Evaluation

... peers (Hoberg and Phillips 2016). RPE predicts that firms filter out common shocks (i.e., those affecting the firm and its peers) while evaluating CEO ...

The Role of Common Risk in the Effectiveness of Explicit Relative ...

Overall, my study provides evidence that RPE is associated with better risk sharing and stronger incentive alignment when (1) RPE firms are exposed to high ...

The Role of Common Risk in the Effectiveness of Explicit Relative ...

In practice (i.e., in the presence of a finite number of peers), RPE effectiveness depends on the extent of firms' common risk exposure and the ...

Board interlock networks and the use of relative performance ...

We deflate all the network measures by firm size to control for size effect (Smith and Watts, 1992). Our variable of interest is the interaction between peer.

How is Relative Performance Evaluation Incorporated in CEO ...

There are common threads across the contractual terms that govern RPE in CEO compensation. First, firms benchmark CEO performance to peers by ...

How do Relative Performance Evaluation and Auditors' Social ...

As audit firms consider updating their evaluation protocols (see Maier. 2016), they can consider the impact of relative performance evaluations on peer-to-peer.

rTSR: When Do Relative Performance Metrics Capture Relative ...

Peer firms in relative performance evaluation. Journal of Accounting and Eco- nomics, 48 (1), 69–89. 5. Albuquerque, A. M. (2013). Do growth-option firms use ...

Relative Performance Evaluation—A Review of Recent Literature at ...

The research results show that the relative performance evaluation is widely used in the executive compensation contracts of listed companies in China. Compared ...

Relative Performance Evaluation and Earnings Management†

Bannister and Newman (2003) and Garvey and Milbourn (2006) find that firms use one-sided. RPE, where executives get rewarded for outperforming the peer-group, ...

CEO Pay and the rise of Relative Performance Contracts

explicitly condition on firm performance relative to peer firms in the same sector. ... performance evaluation (i.e. are benchmarked against an industry peer ...

Relative Performance Evaluation and Strategic Peer‐Harming ...

ABSTRACTMany firms use relative stock performance to evaluate and incentivize their CEOs. We document that such firms routinely disclose information that ...

Do Peer Warnings Affect CEO Compensation? - Pace University

Keywords: relative performance evaluation; information transfer; spillover effect; management guidance; warnings; CEO compensation. INTRODUCTION. When a firm ...

Relative performance evaluation and competitive aggressiveness

Our findings indicate that managers of such firms take more frequent as well as more complex competitive actions, relative to managers evaluated ...