Chemmanur, Thomas J.; Cheng, Yingmei; Zhang, Tianming - In: Journal of Financial Economics 110 (2013) 2, pp. 478-502
We test the predictions of Titman (1984) and Berk, Stanton, and Zechner (2010) by examining the effect of leverage on labor costs. Leverage has a significantly positive impact on cash, equity-based, and total compensation of chief executive officers (CEOs). Compensation of new CEOs hired from...