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The paper examines the impact of culture on executive compensation. Using a sample of 8025 firms from 17 countries and … employing GLOBE cultural dimensions, we find that culture has a significant explanatory power in cross-country executive … compensation practices. We contribute to the existing literature by demonstrating how culture affects the relationship between …
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. Agency theory’s insistence on linking the compensation of managers and directors as closely as possible to firm performance … is a major reason for these scandals. They cannot be overcome by improving variable pay for performance, as selfish …
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