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Management compensation design for a banking firm

Author

Listed:
  • Sinha, Bhaskar

Abstract

The extant of indigenous literature on bad loans concentrate to analyze the factors that would increase efficient credit allocation by public sector banks in India.. RBI, the Central Bank in India, has mostly tried to promote priority sector lending through various policy steps. However, the list has only become longer. The paper proposes an incentive contract based on information asymmetry model to approach the problem

Suggested Citation

  • Sinha, Bhaskar, 2017. "Management compensation design for a banking firm," MPRA Paper 102664, University Library of Munich, Germany, revised Jun 2020.
    • Handle: RePEc:pra:mprapa:102664
    as

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    File URL: https://mpra.ub.uni-muenchen.de/102664/1/MPRA_paper_102664.pdf
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    References listed on IDEAS

    as
    1. Canice Prendergast, 1999. "The Provision of Incentives in Firms," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 7-63, March.
    2. John, Kose & Saunders, Anthony & Senbet, Lemma W, 2000. "A Theory of Bank Regulation and Management Compensation," The Review of Financial Studies, Society for Financial Studies, vol. 13(1), pages 95-125.
    3. Sundaram, Rangarajan K. & Yermack, David, 2006. "Pay Me Later: Inside Debt and Its Role in Managerial Compensation," SIFR Research Report Series 43, Institute for Financial Research.
    4. repec:eee:labchp:v:3:y:1999:i:pb:p:2485-2563 is not listed on IDEAS
    5. Core, John E. & Holthausen, Robert W. & Larcker, David F., 1999. "Corporate governance, chief executive officer compensation, and firm performance," Journal of Financial Economics, Elsevier, vol. 51(3), pages 371-406, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Bank Incentive contract deign; compensation design; priority sector lending ; rewarding effort.;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

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