Abstract
Building on the theoretical insights of the second chapter and their application to firm performance measures in the third chapter, this chapter examines the empirical evidence for the hypothesis that the value of firm performance measures results from the reduction of misallocation costs. Empirically, firm performance pay should be high whenever task descriptors indicate high distortion costs.
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© 2004 Springer-Verlag Berlin Heidelberg
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Schnedler, W. (2004). Statistical Model and Empirical Evidence. In: The Value of Signals in Hidden Action Models. Contributions to Economics. Physica, Heidelberg. https://doi.org/10.1007/978-3-7908-2706-4_4
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DOI: https://doi.org/10.1007/978-3-7908-2706-4_4
Publisher Name: Physica, Heidelberg
Print ISBN: 978-3-7908-0173-6
Online ISBN: 978-3-7908-2706-4
eBook Packages: Springer Book Archive