Performance contracts (PCs) -- contracts signed between the government and state enterprise managers -- have been used widely in developing countries. China's expertise with such contracts was one of the largest experiments with contracting in the public sector, affecting hundreds of thousands...

This paper focuses on the pay level of the highest paid executive directors, which we label as “Executive Director's Organizational Level” (henceforth EDOL), to raise the question if highest paid CEOs invest heavily in innovative projects. Two-stage least squares (2SLS) regressions show that...

This paper studies how CEO pay and its composition is shaped by strategic factors related to the firm's capacity to generate rents and value, the uncertainty of its resource advantage, and the competitive interaction between firm stakeholders and top management. This is done using an analytical...

In this paper we demonstrate that hiring a manager with a propensity to over-invest in socially and responsible production can increase firm profits if customers not only care about the responsible behavior of the market firm but also about the engagements of all players along the firm’s...

Managers ("bosses") are central to the development and allocation of human capital in firms ("talent management") because they both train junior employees and acquire private information about the juniors' abilities. While a multi-divisional firm would want to allocate workers to jobs wherever...

We study direct productivity changes and spillovers after a randomized training program for the frontline workers in a Colombian government agency. While trained workers improved their individual production, we also find substantial spillovers that affected managers' productivity. We use email...

Varying impact of digitalization is felt on all organizations irrespective of their sector/industry. The milieu is relatively under researched for the manufacturing sector. Complexity of the situation is further intensified by volatile, unpredictable, complex and ambiguous conditions (VUCA) of...

We critically review the emerging literature in Organizational and Personnel Economics concerning the role of managers and management practices. Our focus is on the middle managers who populate the hierarchies between top executives and front-line employees. We are especially concerned with...

While the literature appeals to efficiency arguments from agency theory to explain the relative rise of CEO equity compensation, prior work has given less focus to CEO pay contracts based on equity and cash incentives that directly (analytically) maximize the total return of firm owners. The...

What are the costs and benefits of retaining the former CEO on the board? Corporate boards frequently debate this question as part of the CEO succession process. Like many governance issues, empirical evidence indicates that a number of factors are involved in and may drive this on-going...