performance sensitivity of managerial pay, taking external corporate governance and auditing regulation into account. For given … managerial pay, it is optimal to rely on auditing when external governance is in an intermediate range. When both auditing and … incentive pay are used, worse external governance must be balanced by heavier reliance on both of those incentive mechanisms. In …

this separation interact with the regulation of the product market. The main issue to be addressed here is how the degree …

disciplinary function. The different governance outcomes are attributed to differences in minority investor protection in two …

We argue that the choice of corporate governance by a firm affects and is affected by the choice of governance by other … firms. Firms with weaker governance give higher payoffs to their management to incentivize them. This forces firms with good … governance to also pay their management more than they would otherwise, due to competition in the managerial labour market. This …

corporate governance systems. In our paper, optimal corporate governance depends on both firm characteristics and the … composition of the outsiders' overall portfolio. A strong governance system is desirable when the value of the firm's assets in … place, relative to the growth opportunity, is sufficiently small or is sufficiently large, suggesting a corporate governance …

prices. The paper derives a range of new cross-sectional comparative static results and sheds light on corporate governance …