This research identifies mechanisms that could help achieve a deeper understanding of the abnormal compensation of CEOs. We construct a model in which the determination of compensation depends on three factors: the CEO's skills, the level of competition in the sector and the ownership structure...

This paper presents a mechanism that supports the flows of resources between subsidiaries of multinational companies. The mechanism is based on a risk-sharing contract between the HQ and the subsidiary manager. The model is built on the assumption that there are two alternative supervisory...