Asymmetric Regulation, Managerial Discretion, and Corporate Political Strategies

E-CRM and Managerial Discretion

Most sectors of industry, commerce, and government have reported variation in the performance payoff from electronic customer relationship management (e-CRM). In this paper we build on surprisingly sparse literature regarding the importance of managerial discretion to show that the heterogeneity of beliefs held by managers about e-CRM execution matter when explaining e-CRM success. Drawing on a...

Discretion in Managerial Bonus Pools

* We are grateful to Ulf Schiller for helpful comments on an earlier version of this paper. We also thank Yanruo Wang for excellent research assistance. Agency theory has for most part focused on the nature and efficiency properties of " complete " incentive contracts. Accordingly, a contract is viewed as a collection of " if-then " statements such that a specific payoff results if a particular...

Managerial Optimism and Corporate Finance

Accounting Discretion, Corporate Governance and Firm Performance

We investigate whether accounting discretion is (i) abused by opportunistic managers who exploit lax governance structures, or (ii) used by managers in a manner consistent with efficient contracting and shareholder value-maximization. Prior research documents an association between accounting discretion and poor governance quality and concludes that such evidence is consistent with abuse of the...

Irreversible investment, managerial discretion and optimal capital structure

We explore the significance of employee compensation and alternative (reservation) income on investment timing, endogenous default, yield spreads and capital structure. In a real-options setting, a manager’s incentive to under(over)invest in a project is associated to labor income he has to forego in order to work on the project, the manager’s salary, his stake on the project’s equity capital a...