CEO Compensation: Holmström and Tirole (1993) Revisited
KCI
- Title
- CEO Compensation: Holmström and Tirole (1993) Revisited
- Authors
- 한광석; 정덕종; 김관호
- Date Issued
- 2023-11
- Publisher
- 한국경제통상학회
- Abstract
- In this study, we examine a simplified version of Holmström and Tirole (1993) that investigates the role of the stock market in monitoring managerial performance. They demonstrate that the stock price includes performance information that cannot be obtained from the firm's profit data. Therefore, both the firm's liquidation value and stock price are crucial in determining the CEO compensation contract. However, our simplified model shows that only the stock price is used for measuring the CEO's performance. This suggests that the stock price provides sufficient information, making the liquidation value unnecessary in the CEO compensation contract.
- URI
- https://oasis.postech.ac.kr/handle/2014.oak/119873
- ISSN
- 1598-8260
- Article Type
- Article
- Citation
- 경제연구, vol. 41, no. 4, page. 119 - 134, 2023-11
- Files in This Item:
- There are no files associated with this item.
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.