Research Summary

Financial Incentives



My research examines how the performance effects of internal governance and the design of compensation vary by managerial position. For example, I document links between innovation and stock options for corporate R&D heads; resource allocation in internal capital markets and the performance measures for division manager bonuses; and earnings management and bonuses for CFOs. Overall, these findings are significant because they demonstrate the complementary nature of internal governance choices, the importance of recognizing non-monetary incentives, and the differential incentive effects across managerial positions.

Innovation and Incentives: Evidence from Corporate R&D, 
[Written with Josh Lerner],The Review of Economics and Statistics,
89, no. 4 (November 2007): 634-644.  Journal Article in pdf format.

Influence and Inefficiency in the Internal Capital Market , 
ournal of Economic Behavior and Organization, 72, no.1 (October 2009): 305-321. Article in pdf format

Internal Capital
Markets and Firm-Level Compensation Incentives for Division Managers, Journal of Labor Economics, 20, no. 2 (April 2002): S219-S262.  Journal Article in pdf format.

Authority, Risk, and Performance Incentives: Evidence from Division Manager Positions Inside Firms,
Journal of Industrial Economics, 55, no. 1 (March 2007): 169-196.  Journal Article in pdf format.

Earnings Management from the Bottom Up: An Analysis of Managerial Incentives Below the CEO  [Written with Felix Oberholzer-Gee],  Harvard Business School Working Paper 12-056).   Working Paper in pdf format.