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Two essays on managerial incentives

Liang, Hui
Louisiana Tech Digital Commons · Papers
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finance-and-financial-managementfirm-valuehuman-resources-managementindustrial-and-organizational-psychology
Jensen and Meckling (1976) and Jensen (1986) argue that the separation of ownership and control may generate agency problems between managers and shareholders. The equity-based compensation, by tying managerial wealth to firm long-run stock performance, can incentivize managers to be more receptive
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