Standard anticorruption interventions consist of intensified monitoring and sanctioning. Rooted in principal-agent theory, these interventions are based on the assumption that corrupt acts follow a rational cost-benefit calculation by gain-seeking individuals. Given their mixed results, however,...

The continuous rise in CEO compensation over the past few decades has been attributed either to efficient labor market processes (efficient market theories) or to corporate governance failures leading to insufficient control of boards over CEOs (managerial power theories). We argue that both...