Managerial Incentives and Stock Price Manipulation

Preprint OPEN
Peng, Lin; Röell, Ailsa A;
(2009)
  • Subject: corporate governance; Executive compensation; long- versus short-term; manipulation uncertainty
    • jel: jel:D8 | jel:G30 | jel:G34 | jel:J33 | jel:J41 | jel:K2

This paper presents a rational expectations model of optimal executive compensation in a setting where managers are in a position to manipulate short-term stock prices, and managers' propensity to manipulate is uncertain. Stock-based incentives elicit not only productiv... View more
Share - Bookmark