The DOI matches its Crossref record; 3 of the 3 references it cites were found in a registry or an index.
Executive Compensation and Short-Termist Behaviour in Speculative Markets
Abstract
We present a multiperiod agency model of stock-based executive compensation in a speculative stock market, where investors have heterogeneous beliefs and stock prices may deviate from underlying fundamentals and include a speculative option component. This component arises from the option to sell the stock in the future to potentially overoptimistic investors. We show that optimal compensation contracts may emphasize short-term stock performance, at the expense of long-run fundamental value, as an incentive to induce managers to pursue actions which increase the speculative component in the stock price. Our model provides a different perspective on the recent corporate crisis than the “rent extraction view” of executive compensation.
Overview
The claims and statistics of this paper haven’t been checked yet.
Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.
Integrity signals
Registry
Cites
Statistics
Verification
Claims the paper makes
The claims and statistics of this paper haven’t been checked yet.
Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.
Self-check
Percentages, sums and reported differences re-computed from the paper’s own numbers.
The self-check needs the paper’s full text.
Citations
Cites
Shleifer, A., & Vishny, R. W. (1997) · The Journal of Finance · doi:10.1111/j.1540-6261.1997.tb03807.x · Cited by 5,291
The Efficient Market Hypothesis and Its Critics
Malkiel, B. G. (2003) · Journal of Economic Perspectives · doi:10.1257/089533003321164958 · Cited by 2,161
Market Liquidity and Performance Monitoring
Holmström, B., & Tirole, J. (1993) · Journal of Political Economy · doi:10.1086/261893 · Cited by 1,719
Cited by
The Efficient Market Hypothesis and Its Critics
Malkiel, B. G. (2003) · Journal of Economic Perspectives · doi:10.1257/089533003321164958 · Cited by 2,161
Does Climate Change Affect Real Estate Prices? Only If You Believe In It
Baldauf, M., Garlappi, L., & Yannelis, C. (2020) · The Review of Financial Studies · doi:10.1093/rfs/hhz073 · Cited by 713
Frydman, C., & Jenter, D. (2010) · Annual Review of Financial Economics · doi:10.1146/annurev-financial-120209-133958 · Cited by 542
Corporate ESG Profiles and Investor Horizons
Starks, L. T., Venkat, P., & Zhu, Q. (2017) · doi:10.2139/ssrn.3049943 · Cited by 319
Metadata
- Authors
- BOLTON, P., SCHEINKMAN, J., & XIONG, W.
- Venue
- Review of Economic Studies
- Publisher
- Oxford University Press (OUP)
- Published
- 2006-07
- Volume
- 73
- Issue
- 3
- Pages
- 577-610
- ISSN
- 0034-6527 (ISSN-L)
- 1467-937X
- OpenAlex
- W3121679822
- Cited by
- 596
- References
- 3
- FWCI
- 60.44
- Type
- journal article
- Language
- en
- Open access
- closed
About these checks
Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.
Statistics and arithmetic are recomputed, not judged.
Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.
What counts as a claim ›How we measure confidence ›How we check this ›
Are you an author, or do you see a problem with this page? Request a review
Data sources
Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.