We address the role of labor cost differentials for national tax policies. Using a simple theoretical framework with two countries competing for a mobile firm, we show that in a bidding race for FDI, it is optimal for governments to compensate firms for international labor cost differentials....

In this paper we describe the important features of executive compensation in the US from 1993 to 2006. Some confirm what has been found for earlier periods and some are novel. Notable facts are that: the compensation distribution is highly skewed; each year, a sizeable fraction of chief...

Many observers believe that that the public company executive labor market is deficient and results in systematically excessive compensation. This Article accepts that premise and considers potential regulatory responses. Specifically, this Article proposes and analyzes a two-pronged tax...

This paper analyzes the effects of managerial compensation and reputation concerns on earnings manipulation. I develop a model of earnings reporting in which a privately informed manager trades-off incentives to manipulate earnings which increases his compensation against incentives to be honest...

We examine how agency problems in the workplace interact with compensation policies by taking advantage of the structure of the hotel industry, in which many chains have both company managed and franchised properties. As residual claimants on their properties' profits, franchisees have stronger...

Executive pay fell during the 1940s, marking the last notable decrease in the past 70 years. We study this decline using a new panel dataset on the remuneration of top executives in 246 firms. We find that government regulation--including explicit salary restrictions and taxation--had, at best,...

Prior research in management accounting has focused on the pay-performance incentive contracts to examine compensation of top executives. However, the recent economic crisis lessens the validity of the pay-for-performance argument because many executive officers continue to receive a substantial...

This paper investigates the effect of CEO equity incentives on corporate spin-off decisions. We find that CEOs with stronger equity incentives are more likely to engage in corporate spin-offs and the announcements of such spin-offs are positively received by the market, as evidenced by both...

The business cycle has a significant impact on the performance of the organizations. It influences overall compensation costs. The business cycle involves understanding different phases of the economic activity such as periods of expansion, in which there is broad economic growth, and periods of...