... 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...

... by the presence of market incentives, an element that is missing in prior studies on the effects of long information sets disclosures. Consequently, this study seeks to understand if and how order effects prevail in a market setting that includes economic incentives. Our findings indicate that initial primacy...

...S. P. Kothari; Rebecca Lester SYNOPSIS The advent of the Great Recession in 2008 was the culmination of a perfect storm of lax regulation, a growing housing bubble, rising popularity of derivatives instruments, and questionable banking practices. In addition to these causes, management incentives...