Performance Pay, Delegation and Multitasking under Uncertainty and Innovativeness: An Empirical Investigation

@inproceedings{Foss2005PerformancePD,
  title={Performance Pay, Delegation and Multitasking under Uncertainty and Innovativeness: An Empirical Investigation},
  author={Nicolai Juul Foss and Keld Laursen},
  year={2005}
}
It has been recently noted that the trade-off between risk and incentives that agency theory predicts turns out to be rather weak. We examine predictions from agency theory on the basis of data from a data set encompassing close to 1000 Danish firms. We find that the relation between performance pay and environmental uncertainty is indeed weak. We examine the relation between delegation and environmental uncertainty, and find that this relation is confirmed. We also examine the multi-tasking… CONTINUE READING

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