We examine how firms balance difficulty of performance targets in their annual bonus plans.
We present an analytical model showing that managerial allocation of effort is a function of …

We formulate and analyze a model of team structure and monitoring within a Linear‐Exponential‐Normal
(LEN) agency framework. We incorporate three key instruments in the internal …

Much of the production in firms takes place over time. This paper seeks to understand the
value of interim performance information on long projects. In particular, the model explores the …

It is a common practice for firms to conduct performance evaluations of their employees and
yet to withhold this information from those employees. This paper argues that firms …

I build a model of neoclassical production to examine the capital market and welfare effects
of a uniform accounting standard (like IFRS). Firms vary in their cost of compliance to the …

Venture capitalists deliver investments to entrepreneurs in stages. This paper shows staged
financing is efficient. Staging lets investors abandon ventures with low early returns, and …

We study how biases in financial reporting affect managers' incentives to develop innovative
projects and to make appropriate investment decisions. Conservative reporting practices …

Firms routinely allocate the costs of common corporate resources down to divisions. The
main insight of this paper is that any efficient allocation rule must reflect the firm's underlying …

Purpose The purpose of this paper is to provide an argument supporting the growth of
online outsourcing, which will exponentially increase in the coming years with the spread of …

We extend the two-sided matching model with search frictions by allowing agents to continue
searching for an upgrade while already matched. Numerous previous studies have shown …