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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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We show that privatization can be beneficial even if the government is rational and benevolent, and if the firm's economic and informational environment is independent of the governance structure. The model assumes that wage contracts between the firm's owner (government or private entrepreneur)...
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We provide a theory of how growth, corruption, and a low-powered public-sector pay scale coexist in a stable … a tournament, to address how a low-powered pay scale can effectively elicit effort in a tournament infested with …
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bonuses under a Management-by-Objectives (MBO) incentive scheme. Six years of personnel data of 177 managers in a German …
Persistent link: https://www.econbiz.de/10013089005
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...
Persistent link: https://www.econbiz.de/10012984836