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Employment Horizon and the choice of performance measures: empirical evidence from annual bonus plans of loss-making entities.

Publication: Management Science
Publication Date: 01-JUN-09
Format: Online
Delivery: Immediate Online Access

Article Excerpt
One of the challenges that loss-making firms face is how to structure compensation contracts to retain key executives and to motivate long-term value creation. We find evidence that incentive contracts that work well in profitable entities may no longer be appropriate in loss-making entities. In particular, we find that...

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