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I investigate how a CEO's prior performance affects her managerial decision making. Controlling for CEO fixed effects and employing reference points, I find that CEOs choose less risky projects after making gains. This result suggests that following good performance, a CEO feels relaxed and...
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I examine CEO compensation in outsourcing firms, using a new database of purchase obligations from firm 10-Ks. I find that the intensity of outsourcing can significantly explain the variations in CEO compensation; the more the firms do outsourcing, the more they pay to their CEOs. Outsourcing...
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