To examine the impact of globalization on managerial compensation, we consider a matching model where firms compete both in the product market and in the managerial market. We show that globalization, that is, the simultaneous integration of product markets and managerial pools, leads to an...

We contribute to the extensive literature on earnings management by examining the impact of earnings management behaviour on executive compensation conditioned on managerial ability. We find that managers with better abilities are associated with more accrual earnings management, less real...

Prior research has used the principal-agent framework to examine managerial compensation. However, in a number of corporations, managers own enough of their firms' voting rights to be able to decide with relative impunity how they will be compensated. In a real sense, they are the principals....