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There is a debate on whether executive pay reflects rent extraction due to "managerial power" or is the result of arms-length bargaining in a principal-agent framework. In this paper we offer a test of the managerial power hypothesis by empirically examining the CEO compensation of U.S. public...
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We study how managers value applicant credentials and personal traits in hiring decisions. Using the ordered probit … model, we confirm previous results - managers rank applicant traits higher than credentials. However, we also uncover … patterns not previously observed - managerial valuations of some of these characteristics are dependent on managers' perception …
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