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still benefits from the increase in the merged firm's total value. Moreover, given that the managers are compensated … according to an identical linear incentive scheme, the optimal shareholder policy always entails a corner solution. Managers …
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post payouts to managers are largely determined by the ex ante contract terms …
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post payouts to managers are largely determined by the ex ante contract terms …
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post payouts to managers are largely determined by the ex ante contract terms …
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We examine the relations between golden parachutes (GPs), pay-performance sensitivity (delta), and managerial risk-taking. We find an insignificant effect of GPs, but a negative and significant interaction of GPs with delta, on risk-taking. These results are consistent with the “takeover...
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