Abstract: Recent empirical studies in Behavioral Agency Model (see Pepper and Gore, 2012) on executive compensations make evidence how the agent attitude to risk influences the subjectively perceived incentive value. The paper sets out a compensation schedule matching multiple goals: (1) aligning the incentives with the executive subjectively perceived fair and equitable compensation; (2) discouraging the executive excessive risk-taking; (3) providing an approach to calculate the certainty equivalent of the uncertain compensation. To hit the first goal we suggest to use the target-oriented decision approach (see Bordley and LiCalzi, 2000) able to guide the agent in eliciting her subjective value function through the assessment of the (uncertain) target to hit. The proposed approach is compatible with prospect theory (see Kahneman and Tversky, 1979). With reference to the second goal involving the problem on how prevent moral hazard phenomena, we suggest to insert an event-linked option. That war

• Publication Date: 02-Jun-2014
• DOI: 10.15224/978-1-63248-011-8-58
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Abstract: In Malaysia, few previous studies showed contradict findings in discussing about power distance in organizations. Therefore, this study focuses on the experience of public relations student’s during their internship. Specifically, this study examined the existence of power distance in an organization, from student’s perspective. Besides, this paper also suggesting a few steps to be taken in order to improve the internship based on the cultural diversity in Malaysia.

• Publication Date: 02-Jun-2014
• DOI: 10.15224/978-1-63248-011-8-59
• Views: 0
• Downloads: 0