with the evolution in executive pay and the market for managers during earlier time periods. A case study of General …

using financial markets and shareholders cannot perfectly monitor the manager’s portfolio in order to keep him from hedging … the risk in his compensation. In particular, shareholders can monitor the manager’s portfolio stochastically, and since …Incentive compensation induces correlation between the portfolio of managers and the cash flow of the firms they manage …

takeover of Mannesmann in 2000 and it is again in the spotlight since the outbreak of the financial crisis of 2009. Based on … work for. We reject, however, the efficient pay hypothesis as CEO pay and the demand for managers increases in Germany in … difficult times when the typical firm size shrinks. We find further that domestic and global competition for managers has …

result of powerful managers setting their own pay. Others interpret high pay as the result of optimal contracting in a …

cost of capital for investments in jobs. Third, making shareholders the ultimate owner of the firm provides the best …

investigate whether the appointment of well-connected directors enhanced equity value for bank shareholders. Our analysis of panel … bank shareholders in pre-war Britain. …

findings suggest that, when managers engage in wasteful capital expenditures, welfare may decline if the cost of investment is …

By studying the gap between the discount rates used by executives and shareholders, we assess the extent to which …

can limit the interference of the large shareholder and can restore manager’s incentive to exert effort to become informed … on new investment projects without reducing the large shareholder’s incentive to monitor the manager. This results in …