Dietl, Helmut M.; Grossmann, Martin; Lang, Markus; Wey, … - Institut für Betriebswirtschaftslehre, … - 2012
-2010. Using a principal-agent model, this paper investigates the incentive effects of bonus taxes by analyzing the agent's and …'s decision regarding the composition of the compensation package (fixed salary and bonus rate). We find that, surprisingly, a … bonus tax can increase the bonus rate and decrease the fixed salary. In addition, a bonus tax can induce the principal to …