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Article: Research conducted by C. Frydman and co-researchers has updated our knowledge about economics.
- Article from:
- Economics Week
- Article date:
- November 13, 2009
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"In recent years, a large academic debate has tried to explain the rapid rise in CEO pay experienced over the past three decades. In this article, I review the main proposed theories, which span views of compensation as the result of a competitive labor market for executives to theories based on excess of managerial power," investigators in the United States report.
"Some of these hypotheses have found support in cross-sectional evidence, but it has proven more difficult to determine which factors have caused the observed changes in pay over time. An alternative strategy is to evaluate the fit of plausible explanations out of sample by contrasting them with the ...