The effect of severance pay on management behavior during a takeover battle is generally ambiguous. Yet, the severance payment completely restraining all influence activities always constitutes a "golden handshake." The manager leaving office still benefits from the increase in the merged firm's...

"Numerous studies show that people will rise, or fall, to the level where their superiors believe them to be most capable. As a manager, it is up to you to have high expectations for your employees, and to communicate those expectations to them. In Pygmalion in Management, J. Sterling Livingston...