UWSpace is currently experiencing technical difficulties resulting from its recent migration to a new version of its software. These technical issues are not affecting the submission and browse features of the site. UWaterloo community members may continue submitting items to UWSpace. We apologize for the inconvenience, and are actively working to resolve these technical issues.
 

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

Simple item page
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

Files

Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
james_thompson.pdf
Size:
876.16 KB
Format:
Adobe Portable Document Format
Description:
Accepted manuscript
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
4.47 KB
Format:
Item-specific license agreed upon to submission
Description:
Download

Collections

Waterloo Research
Accounting and Finance