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We analyze the consequences of bonus taxes, limited deductibility of bonuses from company pro ts and a corporate income tax (CIT) in a principal-agent model and explore how these tax instruments affect managerial incentives and how they change the design of incentive contracts used in...
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compensation and the delegation of power as complements to keep their managers participating. Trade liberalizations and skill … incentives. Trade integrations may lead firms to endogenously choose organizations with powerful managers and consequently …
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