Using data for the 186 public corporations in which the CEO's total annual remuneration exceeded NIS 1 million in 1997, we examine the statistically significant variables affecting the CEO's salary and the mean compensation of the five top executives. The results of our cross-sectional...

We investigate 218 Related Party Transactions (RPTs) in Israel, an economy characterized by a high percentage of closely held firms, and identify a non-linear inverted U connection between the value effect of RPT and the level of firm ownership concentration. This non-linear connection is...

Agency theory suggests that high pay-performance sensitivity (PPS) of CEO's compensation is an important motivation mechanism to the CEO to improve corporate performance. We develop a simple model that suggests that reverse causality should also be considered. Specifically, our model predicts...