Economic theory predicts that performance evaluation gains meaning and accuracy if the performance is compared to peers, as described by Relative Performance Evaluation theory (or: RPE). RPE can be deployed as a means for standard-setting based on peer group performance, by incorporating the...

We examine the effect of corporate governance on both CEO compensation and several financial performance indicators in a sample of Dutch hospitals. In a series of pooled regressions, we find evidence that supports earlier findings in the literature. For instance, our results indicate that the...