Corporate performance and managerial remuneration: An empirical analysis

  title={Corporate performance and managerial remuneration: An empirical analysis},
  author={K. Murphy},
  journal={Journal of Accounting and Economics},
  • K. Murphy
  • Published 1985
  • Business
  • Journal of Accounting and Economics
Abstract Economic theories of efficient compensation predict a positive relationship between executive pay and corporate performance, and yet efforts to document this relationship have been largely unsuccessful. In this paper, we argue that previous cross-sectional studies have omitted important variables which seriously bias their results. Using data that focus on individual executives over time, we find that executive compensation is strongly positively related to corporate performance as… Expand
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