• Publications
  • Influence
Economics of Strategy
Introduction. Strategy and Economics. Part One. Economic Foundations of Strategy. Chapter 1. Basic Microeconomic Principles. Chapter 2. Economies of Scale and Scope. Chapter 3. Agency andExpand
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Why Do Some Firms Give Stock Options to All Employees?: An Empirical Examination of Alternative Theories
We gather data on firms' stock option grants to middle managers from three distinct sources, and use two methods to assess which theories appear to explain observed granting behavior. Expand
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Implicit Contracts and the Explanatory Power of Top Executive Compensation for Future Performance
Recent research suggests that implicit incentive contracts may be based on performance measures that are observable only to the contracting parties. We derive and test implications of this insightExpand
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How Much Are Differences in Managerial Ability Worth
This paper attempts to measure how much differences in managerial ability can affect firms' values. If transaction costs or firm specific human capital prevent the firm and CEO from recontracting toExpand
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The Dependence of payPerformance Sensitivity on the Size of the Firm
  • S. Schaefer
  • Economics
  • Review of Economics and Statistics
  • 13 August 1998
I analyze the relationship between firm size and the extent to which executive compensation depends on the wealth of the firm's shareholders. I use a simple agency model to motivate an econometricExpand
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Why Do Managers Undertake Acquisitions? An Analysis of Internal and External Rewards for Acquisitiveness
We study the effect of a firm's acquisitions on the subsequent career of its chief executive officer (CEO) by examining a sample of executives who undertook large acquisitions between 1986 and 1988.Expand
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Personnel Economics: Hiring and Incentives
We survey the Personnel Economics literature, focusing on how firms establish, maintain, and end employment relationships and on how firms provide incentives to employees. This literature has beenExpand
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Why Do Some Firms Give Stock Options to All Employees?: An Empirical Examination of Alternative Theories
Many firms issue stock options to all employees. We consider three potential economic justifications for this practice: providing incentives to employees, inducing employees to sort, and helpingExpand
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CEO Pay and the Lake Wobegon Effect
The "Lake Wobegon Effect," which is widely cited as a potential cause for rising CEO pay, is said to occur because no firm wants to admit to having a CEO who is below average, and so no firm allowsExpand
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Sorting, Quotas, and the Civil Rights Act of 1991: Who Hires When it's Hard to Fire?
The Civil Rights Act of 1991 (CRA91) was enacted after a rancorous debate about whether it was a "quota" hiring bill or a necessary means of opening labor markets. Expand
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