compensation and firm-specific human capital less secure. Using a sample of about 450 large firms, we find that an increase in the … threat of takeover from quartile 3 reduces a typical CEO's salary and bonus by between $22,800 and $211,600 due to the … competition effect alone, but raises salary and bonus by between $41,500 and $255,300 due to the risk effect alone. The net effect …

on single mechanisms may be misleading. Indeed, we find relations between firm performance and four of the mechanisms …This paper examines the use of seven mechanisms to control agency problems between managers and shareholders. These … mechanisms are: shareholdings of insiders, institutions, and large blockholders; use of outside directors; debt policy; the …

framework. The lack of a relation between insider shareholding and firm performance in the more inclusive estimations is … persistent negative relation between board composition and firm performance suggests that boards contain too many outsiders …This paper examines firms' choice of the mix of mechanisms used to reduce agency problems between managers and …

literature which has so far ignored this trade-off. In all, our model provides useful insight into contests to become CEO and … can reduce the ability of future CEOs and, hence, future profits. The trade-off between providing current incentives and … good as outsiders), incentive provision to insiders typically dominates and it is optimal to handicap outsiders, sometimes …

If outside directors with backgrounds in politics and in law play a political role, they will be more important on the … that politically experienced directors are more prevalent in firms where sales to government, exports, and lobbying are … greater; lawyer-directors are more prevalent in firms where costs of environmental regulation are higher; and both are more …

Awarding a grand prize to the player who wins most often in a series of contests links the contests together and makes … incentives in the current contest depend on past performance. A lucky player who wins early faces relatively stronger economic … this argument and assesses it empirically using data from the Professional Golfers' Association Tour, before and after a …