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We analyze the impact of partial public ownership (PPO) on managerial incentives. A novelty of the paper is that it … explicitly considers competition in the product market. We find that PPO negatively affects managerial incentives when all firms … incentives crucially depend on the degree of competitive pressure. Thereby, PPO induces either partially public firms or their …
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This paper studies how managerial compensation is shaped by the risk preference of shareholders. Firms with a large ownership held by "dual holders'' -- institutional investors that simultaneously hold equity and bonds of the company -- choose a less risk-inducing compensation structure....
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