This study develops a conceptual model for compensation from firm and manager perspectives. We identify the negotiating range for a compensation plan and adopt a dynamic bargaining game to optimize the equilibrium of base salary and bonus.

The present study examines the following claims: (1) nations with more versus less rules nurture growth in corruption, (2) nations with lighter versus heavier rules exhibit lower levels of corruption, (3) lighter versus heavier rules relates to larger formal economies. Using data from the Doing...