Variable pay: Is it for the worker or the firm?

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dc.contributor.authorAllen, Jason
dc.contributor.authorThompson, James R.
dc.date.accessioned2020-03-19T17:54:29Z
dc.date.available2020-03-19T17:54:29Z
dc.date.issued2019-10
dc.descriptionThe final publication is available at Elsevier via https://doi.org/10.1016/j.jcorpfin.2019.07.0040. © 2019. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/en
dc.description.abstractWhy do firms pay their workers with variable pay? The standard explanation appeals to a problem that the worker faces, e.g., agency. We develop a model of variable pay endogenously driven by the capital structure problem of the firm, and not a worker related problem. If workers face a low probability of job termination, firms use more variable pay, and more leverage. This can have important implications for understanding compensation practices in organizations. We provide empirical evidence consistent with firms using variable pay to increase leverage.en
dc.identifier.urihttps://doi.org/10.1016/j.jcorpfin.2019.07.004
dc.identifier.urihttp://hdl.handle.net/10012/15715
dc.language.isoenen
dc.publisherElsevieren
dc.rightsAttribution-NonCommercial-NoDerivatives 4.0 International*
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/4.0/*
dc.subjectworker compensationen
dc.subjectleverageen
dc.titleVariable pay: Is it for the worker or the firm?en
dc.typeArticleen
dcterms.bibliographicCitationJ. Allen and J.R. Thompson, Variable pay: Is it for the worker or the firm?, Journal of Corporate Finance, https://doi.org/10.1016/j.jcorpfin.2019.07.004en
uws.contributor.affiliation1Faculty of Artsen
uws.contributor.affiliation2School of Accountancyen
uws.peerReviewStatusRevieweden
uws.scholarLevelFacultyen
uws.typeOfResourceTexten

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