Riding the Crest of Wave: CEO Narcissism and Corporate Social Responsibility Choice
While the relationship between chief executive officer (CEO) narcissism and corporate social responsibility (CSR) has yielded inconclusive results, this study aims to explore which type of CSR acti...
To examine the impact of globalization on managerial compensation, we consider a matching model where firms compete both in the product market and in the managerial market. We show that globalization, that is, the simultaneous integration of product markets and managerial pools, leads to an increase in the heterogeneity of managerial salaries. Typically, while the most able managers obtain a wage increase, less able managers are faced with a reduction in wages. Hence our model can explain the increasing heterogeneity of CEO compensation that has been observed in the last few decades.