Cronqvist, Henrik; Heyman, Fredrik; Nilsson, Mattias; … - Charles A. Dice Center for Research in Financial … - 2006
are found to get a larger share of the higher pay. These findings do not seem to be driven by productivity differences or … reverse causality, and are robust to a series of robustness checks. Our evidence is consistent with an agency model in which … entrenched managers pay higher wages because they come with direct private benefits for the manager, such as lower-effort wage …