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This paper studies how altruism between managers and employees affects relational incentive contracts. To this end we …
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Contrary to previous literature we hypothesize that labor's interest may well – like that of shareholders – aim at securing the long-run survival of the firm. Consequently, employee representatives on the supervisory board could well have an interest in increasing incentive-based...
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evaluates that literature, clarifies what tournament theory predicts about the relationship, identifies methodological pitfalls … relationship between pay disparity and firm performance. Tournament theory offers a unified framework that can explain an inverted …
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