| Author: | Cunat, V. Guadalupe, M. |
| Title: | How does product market competition shape incentive contracts? |
| Journal: | Journal of the European Economic Association
2005 : SEP, VOL. 3:5, p. 1058-1082 |
| Index terms: | competition executives incentives |
| Language: | eng |
| Abstract: | This article investigates the impact of product market competition on the explicit compensation packages that firms offer to their CEOs, executives and workers. Data is collected from both traded and nontraded UK firms. The sudden appreciation of the pound in 1996 indicate different changes in competition for sectors with different degrees of openness. Difference in difference estimates suggest that a higher level of product market competition increases the performance pay sensitivity of compensation schemes, particularly for executives. |
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