Disentangling managerial incentives from a dynamic perspective: The role of stock grants

We analyse the optimal contract between a risk‐averse manager and the initial shareholders in a two‐period model where the manager's investment effort, carried out in period 1, and his or her current effort, carried out in period 2, both impact the second‐period profit, so that it may be difficult to disentangle the incentives for these two types of effort. We show that stock grants play different roles according to whether the signal of investment effort is less noisy, or noisier, than that of current effort. We determine simultaneously the optimal stock grants and the optimal restrictions on sales of shares.     

Globalization and its consequences: Malaysian managerial perspectives and implications

With the aid of a multi-disciplinary literature review and a sample of 165 managers and professionals, this study investigated the perception of the impact of globalization in Malaysia. The study revealed that a significant percentage of the respondents subscribe to the hegemonic view of globalization as a system that is closed to other political, economic and value systems. However, they also see the benefits of globalization in terms of the transfer of good business practices as well as the flow of foreign direct investment (FDI). The views of respondents vary between ethnic groups, with the Chinese tending to be more enthusiastic about the positive impact of globalization while the Malays tend to be more concerned about its negative impact. The theoretical and practical implications of the study are discussed.