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What Explains the Rise in CEO Pay in Germany? A Panel Data Analysis for 1977-2009

Fabbri, Francesca; Marin, Dalia - CESifo - 2012

work for. We reject, however, the efficient pay hypothesis as CEO pay and the demand for managers increases in Germany in … difficult times when the typical firm size shrinks. We find further that domestic and global competition for managers has …

Persistent link: https://www.econbiz.de/10009653374

Optimal Delegation when the Large Shareholder has Multiple Tasks

Graziano, Clara; Luporini, Annalisa - CESifo - 2010

We analyze the optimal ownership, delegation and compensation structures when a manager is hired to run a firm and to gather information on investment projects. The initial owner has two tasks: monitoring the manager and supervising project choice. Optimality would require a large ownership...

Persistent link: https://www.econbiz.de/10008596583

A Revealed Preference Approach to Understanding Corporate Governance Problems: Evidence from Canada

Chirinko, Robert S.; Schaller, Huntley - CESifo - 2002

By studying the gap between the discount rates used by executives and shareholders, we assess the extent to which governance problems distort firm behavior. The estimation strategy recovers discount rates used by executives from the pattern of their actual investment spending. Our empirical work...

Persistent link: https://www.econbiz.de/10005765749

Ownership Concentration, Monitoring and Optimal Board Structure

Graziano, Clara; Luporini, Annalisa - CESifo - 2005

can limit the interference of the large shareholder and can restore manager’s incentive to exert effort to become informed … concentrated. It also offers support to some recent corporate governance reforms (like the so-called Vietti reform in Italy) that …

Persistent link: https://www.econbiz.de/10005765820

The Positive Economics of Labor Market Rigidities and Investor Protection

Fehn, Rainer; Meier, Carsten-Patrick - CESifo - 2001

This paper presents a positive model which shows that institutional setups on capital and labor markets might be intertwined by politicoeconomic forces. Some countries especially in continental Europe exhibit a corporatist politicoeconomic equilibrium with a substantial protection of insiders on...

Persistent link: https://www.econbiz.de/10005766256

Managerial Hedging and Portfolio Monitoring

Bisin, Alberto; Gottardi, Piero; Rampini, Adriano A. - CESifo - 2004

Incentive compensation induces correlation between the portfolio of managers and the cash flow of the firms they manage …. This correlation exposes managers to risk and hence gives them an incentive to hedge against the poor performance of their … using financial markets and shareholders cannot perfectly monitor the manager’s portfolio in order to keep him from hedging …

Persistent link: https://www.econbiz.de/10005094243

Diversification and Ownership Concentration

Parigi, Bruno Maria; Pelizzon, Loriana - CESifo - 2005

We consider a mean-variance general equilibrium economy where the expected returns for controlling and non-controlling shareholders are different because the former are able to divert a fraction of the profits. We find that when investor protection is poor, asset return correlation affects...

Persistent link: https://www.econbiz.de/10005181426

How Weak is the Weakest-Link Principle?On the Measurement of Firm Owners’Control Rights

Edwards, Jeremy; Weichenrieder, Alfons - CESifo - 2004

The paper argues that the weakest link principle, which has been widely used as a measure of ultimate owners’ control rights, has a number of serious problems. A theoretically more satisfactory method of measuring control rights, based on voting power indices, is proposed, and the different...

Persistent link: https://www.econbiz.de/10005196258

Learning from the Past: Trends in Executive Compensation over the Twentieth Century

Frydman, Carola - CESifo - 2008

with the evolution in executive pay and the market for managers during earlier time periods. A case study of General …

Persistent link: https://www.econbiz.de/10005405726

Rhineland Exit?

Bovenberg, Lans; Teulings, Coenraad N. - CESifo - 2008

We argue in favor of the shareholder model of the firm for three main reasons. First, serving multiple stakeholders leads to ill-defined property rights. What sounds like a fair compromise between stakeholders can easily evolve in a permanent struggle about the ultimate goal of the company....

Persistent link: https://www.econbiz.de/10005405829