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Evaluate the Effectiveness of Manager Compensation

  • Cheng-Feng Cheng

    (Department of International Business, Asia University, Taiwan)

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    This study develops a conceptual model for compensation from firm and manager perspectives. We identify the negotiating range for a compensation plan and adopt a dynamic bargaining game to optimize the equilibrium of base salary and bonus.

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    Article provided by College of Business, and College of Finance, Feng Chia University, Taichung, Taiwan in its journal International Journal of Business and Economics.

    Volume (Year): 11 (2012)
    Issue (Month): 1 (June)
    Pages: 25-44

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    Handle: RePEc:ijb:journl:v:11:y:2012:i:1:p:25-44
    Contact details of provider: Postal: 100 Wenhwa Road, Seatwen, Taichung
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    1. Arjen van Witteloostuijn & Thijs Jansen & Arie van Lier, 2007. "Bargaining over managerial contracts in delegation games: managerial power, contract disclosure and cartel behavior," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 28(8), pages 897-904.
    2. Ke Yang, 2010. "Limit-Pricing and Learning-By-Doing: A Dynamic Game with Incomplete Information," International Journal of Business and Economics, College of Business, and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 9(3), pages 201-212, December.
    3. Misra, Sanjog & Nair, Harikesh, 2009. "A Structural Model of Sales-Force Compensation Dynamics: Estimation and Field Implementation," Research Papers 2037, Stanford University, Graduate School of Business.
    4. E. Paul Durrenberger, 2012. "Labour," Chapters, in: A Handbook of Economic Anthropology, Second Edition, chapter 8 Edward Elgar.
    5. Gans, Joshua S. & Leigh, Andrew, 2011. "Bargaining Over Labor: Do Patients Have Any Power?," IZA Discussion Papers 6165, Institute for the Study of Labor (IZA).
    6. R. Andergassen, 2005. "High powered Incentives and Fraudulent Behavior: Stock based versus Stock Option based Compensation," Working Papers 542, Dipartimento Scienze Economiche, Universita' di Bologna.
    7. Kissan Joseph & Alex Thevaranjan, 1998. "Monitoring and Incentives in Sales Organizations: An Agency-Theoretic Perspective," Marketing Science, INFORMS, vol. 17(2), pages 107-123.
    8. Luigi Ermini & David F. Hendry, 1991. "Log Income vs. Linear Income: An Application of the Encompassing Principle," Working Papers 199111, University of Hawaii at Manoa, Department of Economics.
    9. Ayşe Mumcu, 2010. "Strategic Withholding Of Firm-Specific Skills In Wage Bargaining," Scottish Journal of Political Economy, Scottish Economic Society, vol. 57(2), pages 187-211, 05.
    10. Salvatore Piccolo, 2009. "Colluding through Suppliers," CSEF Working Papers 224, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy, revised 08 Apr 2010.
    11. Steven M. Shugan, 2002. "Editorial: Marketing Science, Models, Monopoly Models, and Why We Need Them," Marketing Science, INFORMS, vol. 21(3), pages 223-228.
    12. Ni-Na Yan & Bao-Wen Sun, 2012. "Optimal Stackelberg Strategies For Closed-Loop Supply Chain With Third-Party Reverse Logistics," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 29(05), pages 1250026-1-1.
    13. Gwenlyn M. Busby & Heidi J. Albers & Claire A. Montgomery, 2012. "Wildfire Risk Management in a Landscape with Fragmented Ownership and Spatial Interactions," Land Economics, University of Wisconsin Press, vol. 88(3), pages 496-517.
    14. Bizjak, John & Lemmon, Michael & Nguyen, Thanh, 2011. "Are all CEOs above average? An empirical analysis of compensation peer groups and pay design," Journal of Financial Economics, Elsevier, vol. 100(3), pages 538-555, June.
    15. Amiya K. Basu & Rajiv Lal & V. Srinivasan & Richard Staelin, 1985. "Salesforce Compensation Plans: An Agency Theoretic Perspective," Marketing Science, INFORMS, vol. 4(4), pages 267-291.
    16. Miller, Nolan H & Pazgal, Amit I, 2001. "The Equivalence of Price and Quantity Competition with Delegation," RAND Journal of Economics, The RAND Corporation, vol. 32(2), pages 284-301, Summer.
    17. Giummo, Jesse, 2010. "German employee inventors' compensation records: A window into the returns to patented inventions," Research Policy, Elsevier, vol. 39(7), pages 969-984, September.
    18. Fershtman, C & Gneezy, U, 1996. "Strategic Delegation : An Experiment," Papers 43-96, Tel Aviv.
    19. Crutchley, Claire E. & Minnick, Kristina, 2012. "Cash versus incentive compensation: Lawsuits and director pay," Journal of Business Research, Elsevier, vol. 65(7), pages 907-913.
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