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Author: Paul Kupiec
Publisher:
ISBN:
Category :
Languages : en
Pages : 33
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Book Description
In a stylized model of a financial intermediary, risk managers expend costly effort to reduce loan PD and LGD. When effort is unobservable, incentive compensation (IC) can induce manager effort, but underwriting and loss mitigation managers require different IC contracts. Subsidized insured deposit funding decreases the demand for risk management because it decreases the insurance subsidy. When IC is required to induce effort, it further increases the principal's costs because wages which are subsidized by the insurer are replaced with IC which is not. These additional costs reduce the principal's demand for risk management and discourage IC contracts. Regulatory policy should reinforce an insured depository's incentives to offer appropriate risk management IC contracts and yet existing regulatory guidance explicitly discourages performance-linked IC for risk managers.
Author: Paul Kupiec
Publisher:
ISBN:
Category :
Languages : en
Pages : 33
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Book Description
In a stylized model of a financial intermediary, risk managers expend costly effort to reduce loan PD and LGD. When effort is unobservable, incentive compensation (IC) can induce manager effort, but underwriting and loss mitigation managers require different IC contracts. Subsidized insured deposit funding decreases the demand for risk management because it decreases the insurance subsidy. When IC is required to induce effort, it further increases the principal's costs because wages which are subsidized by the insurer are replaced with IC which is not. These additional costs reduce the principal's demand for risk management and discourage IC contracts. Regulatory policy should reinforce an insured depository's incentives to offer appropriate risk management IC contracts and yet existing regulatory guidance explicitly discourages performance-linked IC for risk managers.
Author: Donald E. Campbell
Publisher: Cambridge University Press
ISBN: 1108547958
Category : Business & Economics
Languages : en
Pages : 700
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Book Description
When incentives work well, individuals prosper. When incentives are poor, the pursuit of self-interest is self-defeating. This book is wholly devoted to the topical subject of incentives from individual, collective, and institutional standpoints. This third edition is fully updated and expanded, including a new section on the 2007–08 financial crisis and a new chapter on networks as well as specific applications of school placement for students, search engine ad auctions, pollution permits, and more. Using worked examples and lucid general theory in its analysis, and seasoned with references to current and past events, Incentives: Motivation and the Economics of Information examines: the performance of agents hired to carry out specific tasks, from taxi drivers to CEOs; the performance of institutions, from voting schemes to medical panels deciding who gets kidney transplants; a wide range of market transactions, from auctions to labor markets to the entire economy. Suitable for advanced undergraduate and graduate students studying incentives as part of courses in microeconomics, economic theory, managerial economics, political economy, and related areas of social science.
Author: Sonku Kim
Publisher:
ISBN:
Category :
Languages : en
Pages : 46
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Book Description
Author: Brickley
Publisher: McGraw Hill
ISBN: 0077175301
Category : Business & Economics
Languages : en
Pages : 836
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Book Description
Ebook: Managerial Economics and Organizational Architecture
Author: Abol Jalilvand
Publisher: Routledge
ISBN: 1136644903
Category : Business & Economics
Languages : en
Pages : 496
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Book Description
The asymmetry of responsibilities between management and corporate governance both for day-to-day operations and the board’s monthly or quarterly review and evaluation remains an unresolved challenge. Expertise in the area of risk management is a fundamental requirement for effective corporate governance, if not by all, certainly by some board members. This means that along with board committees such as "compensation", "audit", "strategy" and several others, "risk management" committees must be established to monitor the likelihood of certain events that may cause the collapse of the firm. Risk Management and Corporate Governance allows academics and practitioners to assess the state of international research in risk management and corporate governance. The chapters overlay the areas of risk management and corporate governance on both financial and operating decisions of a firm while treating legal and political environments as externalities to decisions undertaken.
Author: Yi Li
Publisher: Taylor & Francis
ISBN: 1000898830
Category : Business & Economics
Languages : en
Pages : 187
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Book Description
Examining the negative consequences that arise from supply chain risks, this book systematically explores firms’ responses to these risks in different situations. In particular, it focuses on sourcing strategies of firms under supply chain risks and the different mitigation tools they use, such as supplier development and multisourcing. Supply chains have expanded extensively because many firms try to take advantage of outsourcing of their raw materials and critical components. Though firms can reap significant benefits due to the widespread use of outsourcing, they have to deal with increasing supply chain risks. In general, supply chain risks are various and may be originated from natural disasters, labor strikes, fires, and so on. These risk incidents can cause serious damage to firms’ profit performance. The analysis and insights from this book can be utilized by firms to alleviate the impact of supply chain risks in the sourcing process. It will also be of interest to researchers and students studying supply chain management.
Author: Bo Sun
Publisher: DIANE Publishing
ISBN: 1437930980
Category : Business & Economics
Languages : en
Pages : 33
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Book Description
Analyzes executive compensation in a setting where managers may take a costly action to manipulate corporate performance, and whether managers do so is stochastic. Examines how the opportunity to manipulate affects the optimal pay contract, and establishes necessary and sufficient conditions under which earnings management occurs. The author¿s model provides a set of implications on the role earnings management plays in driving the time-series and cross-sectional variation of executive compensation. In addition, the model's predictions regarding the changes of earnings management and executive pay in response to corporate governance legislation are consistent with empirical observations. Charts and tables.
Author: Chandra S. Mishra
Publisher: Springer
ISBN: 331954540X
Category : Business & Economics
Languages : en
Pages : 377
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Book Description
This book develops a unified framework to explain the phenomena of competitive advantage and firm value creation in dynamic environments. Through a new strategic value creation theory, it explores how a firm can measure and sustain its competitive advantage through management incentives, capital market forces, organizational culture and structure, and social complexity. It also considers how management can utilize their resources and capabilities, shadow options, product market forces, customer needs, and organizational learning as a means to differentiate them from the competition. With an innovative approach to theory and research, it will be positioned to inform both scholars and practitioners in management, business strategy, and entrepreneurship on the process of competitive and sustainable value creation.
Author: Paul Belleflamme
Publisher: Cambridge University Press
ISBN: 052186299X
Category : Business & Economics
Languages : en
Pages : 725
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Book Description
An innovative graduate textbook that explains modern industrial organization by blending theory with real-world applications.
Author: Matthew C. Bloom
Publisher:
ISBN:
Category : Incentive awards
Languages : en
Pages : 46
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Book Description
