the effect of relative performance evaluation on investment efficiency ...

First, I extend the growing empirical literature on relative performance in executive compensation contracts to consider the effects of RPE on managerial ...

The Effect of Relative Performance Evaluation on Investment ...

Moreover, firms that invest more efficiently have higher future profitability and operating performance than those that underinvest or ...

Relative performance evaluation and investment efficiency

Using data on 1642 long-term equity incentive plans implemented in 1186 Chinese listed companies from 2001 to 2020, we find that the reduction in inefficient ...

The Effect of Relative Performance Evaluation

In the paper, The Effect of Relative Performance Evaluation on Investment Efficiency and Firm Performance, which was recently made publicly ...

The Effect of Relative Performance Evaluation on Investment ...

I also find some evidence that RPE firms have higher total shareholder return (TSR) than similar non-RPE firms when contracting specifically on TSR. In addition ...

The Effect of Relative Performance Evaluation on Investment ...

Abstract. In this study, I examine the effect of explicit relative performance evaluation (RPE) on managers investment decisions and firm performance.

[PDF] The Effect of Relative Performance Evaluation on Investment ...

This study examines the effect of relative performance evaluation (RPE) on managers' investment decisions and firm performance.

The Effect of Relative Performance Evaluation on Investment ... - OUCI

The Effect of Relative Performance Evaluation on Investment Efficiency and Firm Performance. https://doi.org/10.2139/ssrn.2645956 · Full text. Journal: SSRN ...

Relative performance evaluation and investment efficiency

Collectively, our analyses demonstrate that benchmarking firms' performance against industry peers through RPE encourages more efficient allocation of ...

Relative performance evaluation and investment efficiency

We propose that investors do not fully process changes in return on assets—stemming from changes in asset turnover—because of their (1) fixation on the income ...

An Empirical Investigation of the Relative Performance Evaluation of ...

Masson [1971] indirectly addresses an efficiency issue when he finds that firms which link executive pay more strongly to performance tend to outperform firms ...

Relative performance evaluation and investment efficiency | CoLab

We investigate the impact of incorporating relative performance targets in long-term equity plans on investment efficiency in China.

Relative performance evaluation and investment efficiency

Abstract: We investigate the impact of incorporating relative performance targets in long-term equity plans on investment efficiency in China.

Relative Performance Evaluation and Long-Term Incentives

However, the theory also holds that such noise filtering can have adverse long-term effects because it undermines incentives to invest and to optimize firm risk ...

The Moderating Effect of Relative Performance Evaluation on the ...

We offer evidence that the use of relative performance evaluation (RPE) in CEOs' incentive contracts influences the effect of risk-taking ...

How relative performance evaluation affects corporate risk taking

We test whether a firm's riskiness is altered by its CEO's incentive to win the tournament. We find that a firm that performed poorly relative to its peers ...

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

I examine the effect of relative performance evaluation (RPE) on firm performance and risk-taking behavior. Agency theory suggests that, ...

Relative Performance Evaluation and Strategic Differentiation

Relative performance evaluation (RPE) can provide CEOs with efficient effort incentives (Holmström 1982). However, investors are not only ...

Relative Performance Evaluation and Corporate Innovation

... efficiency by investing innovation investment with more productive output. Moreover, since the outcome of an agent's action choice, specifically, innovation ...

Relative Performance Evaluation and Risk Taking in Delegated ...

This study uses a laboratory experiment to test the effect of relative performance evaluation on the risk-aversion of delegated investment decisions.