Portal de Periódicos da CAPES

Corporate control and management compensation: Evidence on the agency problem

1988; Wiley; Volume: 9; Issue: 1 Linguagem: Inglês

10.1002/mde.4090090102

1099-1468

Edward A. Dyl,

Law, Economics, and Judicial Systems

Abstract This paper finds a relationship between management compensation and corporate control consistent with the hypothesis that in closely held companies major shareholders engage in monitoring activities that reduce the residual loss portion of agency costs. This result is incosistent with Fama's (1980) suggestion that the wage determination process in managerial labor markets may resolve the agency problem.