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Efficient contracting predicts that ex-ante severance pay contracts are offered to CEOs as protection against downside risk and to encourage investment in risky positive net-present-value projects. Consistent with this prediction, we find that ex-ante contracted severance pay is positively...
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post payouts to managers are largely determined by the ex ante contract terms …
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post payouts to managers are largely determined by the ex ante contract terms …
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post payouts to managers are largely determined by the ex ante contract terms …
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