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Contrary to previous literature we hypothesize that labor's interest may well – like that of shareholders – aim at securing the long-run survival of the firm. Consequently, employee representatives on the supervisory board could well have an interest in increasing incentive-based...
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This paper provides a rationale for the coexistence of different systems of corporate governance based on the multitude … relationships between governance instruments, specific combinations of instruments which reinforce each other in minimizing agency … costs fit together better than alternative combinations. We derive comparative static results showing how various governance …
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