Business Commons^™

Incentives And Firm Behaviors, Thu Hien Thi Nguyen

Graduate Theses and Dissertations

My research interests focus on the economic behavior, choices, and actions of organizations as well as individuals given their incentives, and analyze the consequences of such decisions to the financial health of firms and the macro economy. A firm is incentivized by the value investors place on its operations; while employees, particularly the management team, is incentivized by the private benefits the firm gives them. Understanding the impact of such incentives will help alleviate the classic agency costs in modern organizations.

Stock illiquidity raises the cost of share ownership to outside investors. The sizable adverse price impact of trading increases …