File Download
There are no files associated with this item.
Links for fulltext
(May Require Subscription)
- Publisher Website: 10.1111/j.1467-6451.2010.00406.x
- Scopus: eid_2-s2.0-77950808454
- WOS: WOS:000275099300007
- Find via
Supplementary
- Citations:
- Appears in Collections:
Article: Incentives, equality and contract renegotiations: Theory and evidence in the chinese banking industry
Title | Incentives, equality and contract renegotiations: Theory and evidence in the chinese banking industry |
---|---|
Authors | |
Issue Date | 2010 |
Citation | Journal of Industrial Economics, 2010, v. 58, n. 1, p. 156-189 How to Cite? |
Abstract | Renegotiation plays an important role in contract theory, but the empirical study of renegotiation is almost non-existent in the literature. Using a unique dataset from the Chinese banking industry, we find that the large majority of managerial incentive contracts are renegotiated after performances are realized. We develop a model of contract renegotiation where supervisors and managers sign incentive contracts and then renegotiate them. In the unique equilibrium of the model, incentive contracts are almost always renegotiated ex post. Even though renegotiation is fully anticipated, incentive contracts affect performance. The predictions of the model find strong support from our empirical results. © 2010 The Authors. Journal compilation © 2010 Blackwell Publishing Ltd. and the Editorial Board of The Journal of Industrial Economics. |
Persistent Identifier | http://hdl.handle.net/10722/241898 |
ISSN | 2023 Impact Factor: 1.7 2023 SCImago Journal Rankings: 0.792 |
ISI Accession Number ID |
DC Field | Value | Language |
---|---|---|
dc.contributor.author | Cai, Hongbin | - |
dc.contributor.author | LI, Hongbin | - |
dc.contributor.author | Zhou, Li An | - |
dc.date.accessioned | 2017-06-23T01:56:03Z | - |
dc.date.available | 2017-06-23T01:56:03Z | - |
dc.date.issued | 2010 | - |
dc.identifier.citation | Journal of Industrial Economics, 2010, v. 58, n. 1, p. 156-189 | - |
dc.identifier.issn | 0022-1821 | - |
dc.identifier.uri | http://hdl.handle.net/10722/241898 | - |
dc.description.abstract | Renegotiation plays an important role in contract theory, but the empirical study of renegotiation is almost non-existent in the literature. Using a unique dataset from the Chinese banking industry, we find that the large majority of managerial incentive contracts are renegotiated after performances are realized. We develop a model of contract renegotiation where supervisors and managers sign incentive contracts and then renegotiate them. In the unique equilibrium of the model, incentive contracts are almost always renegotiated ex post. Even though renegotiation is fully anticipated, incentive contracts affect performance. The predictions of the model find strong support from our empirical results. © 2010 The Authors. Journal compilation © 2010 Blackwell Publishing Ltd. and the Editorial Board of The Journal of Industrial Economics. | - |
dc.language | eng | - |
dc.relation.ispartof | Journal of Industrial Economics | - |
dc.title | Incentives, equality and contract renegotiations: Theory and evidence in the chinese banking industry | - |
dc.type | Article | - |
dc.description.nature | link_to_subscribed_fulltext | - |
dc.identifier.doi | 10.1111/j.1467-6451.2010.00406.x | - |
dc.identifier.scopus | eid_2-s2.0-77950808454 | - |
dc.identifier.volume | 58 | - |
dc.identifier.issue | 1 | - |
dc.identifier.spage | 156 | - |
dc.identifier.epage | 189 | - |
dc.identifier.eissn | 1467-6451 | - |
dc.identifier.isi | WOS:000275099300007 | - |
dc.identifier.issnl | 0022-1821 | - |