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Executive search firms play a major role in the hiring decisions of executives, yet their impact on executive pay and firms' internal labor markets remain unexplored. In this paper, we present a model that attempts to fill this gap. The model relates the escalation of CEO pay to a decline in...
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directors in Japan may have little incentive to pursue shareholders' interest while directors in the UK may have an incentive to … maximise its value in stock markets. These results may be consistent with the view that large companies in Japan often neglect …
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