Profit sharing between managers and investors: An experimental investigation

dc.contributor.authorÖztürkkal, Belma
dc.date.accessioned2019-06-27T08:02:19Z
dc.date.available2019-06-27T08:02:19Z
dc.date.issued2015
dc.departmentFakülteler, İşletme Fakültesi, Uluslararası Ticaret ve Finans Bölümüen_US
dc.description.abstractThis study analyzes the effect of interest and power structures and conflict of interest among managers and investors and tests the effect of different payout mechanisms on willingness to pay. In this study 74 student subjects are involved in a setting where the manager is determining his own compensation. A series of experiments that vary managers' ability to determine their own compensation and investors' ability to punish inappropriate behavior are reported. The experiments involve pairs of subjects consisting of an investor and a manager with asymmetric decision making powers. When managers compensate themselves inappropriately investors' recourse is to shun the company's shares-a model that arguably corresponds more closely to reality than the accepted efficient market traditional paradigm. The experiment shows that managers share profits even when investors cannot withhold investment and investors fairly compensate managers as well. This pattern explains both the ability of capital markets to function despite the presence of inherent moral hazard and occasional managerial misbehavior. Copyright (C) 2015 Borsa Istanbul Anonim Sirketi. Production and hosting by Elsevier B.V.en_US]
dc.identifier.citation2
dc.identifier.doi10.1016/j.bir.2015.02.002en_US
dc.identifier.endpage114
dc.identifier.issn2214-8450en_US
dc.identifier.issn2214-8469en_US
dc.identifier.issn2214-8450
dc.identifier.issn2214-8469
dc.identifier.issue2
dc.identifier.scopus2-s2.0-84954103770en_US
dc.identifier.scopusqualityQ1
dc.identifier.startpage106en_US
dc.identifier.urihttps://hdl.handle.net/20.500.12469/595
dc.identifier.urihttps://doi.org/10.1016/j.bir.2015.02.002
dc.identifier.volume15en_US
dc.identifier.wosWOS:000434507700004en_US
dc.identifier.wosqualityQ1
dc.institutionauthorÖztürkkal, Belmaen_US
dc.language.isoenen_US
dc.publisherElsevier Science Bven_US
dc.relation.journalBorsa Istanbul Reviewen_US
dc.relation.publicationcategoryMakale - Uluslararası Hakemli Dergi - Kurum Öğretim Elemanıen_US
dc.rightsinfo:eu-repo/semantics/openAccessen_US
dc.subjectBehavioral financeen_US
dc.subjectPayout policyen_US
dc.subjectExperimenten_US
dc.titleProfit sharing between managers and investors: An experimental investigationen_US
dc.typeArticleen_US
dspace.entity.typePublication

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