Peer Firms in Relative Performance Evaluation

Peer firms in relative performance evaluation - ScienceDirect.com

When peer groups consist of firms within the same industry and size quartile, my empirical results show systematic evidence supporting RPE usage in CEO pay. The ...

Relative performance evaluation (RPE) in CEO compensation provides insurance against external shocks and yields a more informative measure ...

Peer firms in relative performance evaluation - IDEAS/RePEc

Albuquerque, Ana, 2009. "Peer firms in relative performance evaluation," Journal of Accounting and Economics, Elsevier, vol. 48(1), pages 69-89, October.

Choice of Peers for Relative Performance Evaluation in Executive ...

One of the primary reasons for firms to use an RPE award is to filter out exogenous shocks to firm performance that are outside of a manager's control. This can ...

Relative Performance Evaluation and the Peer Group Opportunity Set

“Explicit RPE” refers to compensation plans that explicitly identify. (and disclose) a benchmark peer group or index against which the firm's performance is ...

Peer Firms in Relative Performance Evaluation | Request PDF

Albuquerque (2009) indicated that the assessment of the firm's performance based on the stock price is conducted compared to the peer firms. As a result, firms ...

Peer-Specific Knowledge and Peer Group Properties in Relative ...

Although relative performance evaluation (RPE) represents an important compensation practice, selecting a relevant peer firm poses a ...

Peer Firms in Relative Performance Evaluation

Agency theory suggests that the compensation of chief executive officers (CEOs) should be linked to firm performance to motivate CEOs to ...

Relative Performance Evaluation and Strategic Peer‐Harming ...

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

Does it pay to 'Be Like Mike'? Aspiratonal peer firms and relative ...

In addition, we define and test conditions where aggregate peer performance, which has been the primary focus of prior relative performance ...

Relative Performance Evaluation and the Peer Group Opportunity Set

We find that firms are significantly more likely to use peer-based RPE when an effective peer group is readily available. Peer availability is ...

Does it pay to 'Be Like Mike'? Aspiratonal peer firms and relative ...

Relative performance evaluation (RPE) stresses the importance of evaluating managers by comparing their firm performance to that of a group of ...

Peer firms in relative performance evaluation - EconPapers - RePEc

By Ana Albuquerque; Abstract: Relative performance evaluation (RPE) in chief executive officer (CEO) compensation provides insurance against.

The Choice of Peers for Relative Performance Evaluation in ...

Relative performance evaluation (RPE) awards provide a payout based on a firm's performance relative to a predetermined peer group of firms. The theoretical ...

Relative Performance Evaluation and Peer Firms' Analyst Following

We predict that peer firms' analysts can reduce information uncertainty induced by RPE contracts and thus facilitate executives' achievement of ...

Product Market Peers and Relative Performance Evaluation

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

Choice of Peers for Relative Performance Evaluation in Executive ...

For RPE awards using a market index, we find some evidence that firms could have selected a custom set of peers with better filtering properties ...

Relative Performance Evaluation in CEO Compensation

We examine RPE terms in CEO compensation contracts and find support for these predictions: Firms converge to similar rank-based RPE contracts, RPE peers overlap ...

Implementing relative performance evaluation: The role of life cycle ...

Using explicit peer firm disclosures and a peer selection model, we show that firms routinely select life cycle peers. Further, using implicit RPE tests, we ...

Relative Performance Evaluation and Long-Term Incentives

It is now well established that CEO compensation is associated positively with the firm's own stock returns but negatively with peer stock returns (Albuquerque ...