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In the empirical estimation of the relation between CEO pay and both firm and peer performance, researchers typically … bias the regression coefficients. In a cross-sectional estimation of CEO pay-for-performance sensitivity, we document … researcher can remove estimation bias in both CEO pay-for-performance sensitivity and RPE detection by using gross rather than …
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Chief executive officers (CEOs) are typically paid great amounts of money in wages and bonuses by commercial companies. This is sometimes defended with an argument from peer comparison; roughly that "our" CEO has to be paid in accordance with what other CEOs at comparable companies get. At first...
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