๐”– Bobbio Scriptorium
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Employee well-being, firm leverage, and bankruptcy risk

โœ Scribed by Patrick Verwijmeren; Jeroen Derwall


Book ID
116615507
Publisher
Elsevier Science
Year
2010
Tongue
English
Weight
209 KB
Volume
34
Category
Article
ISSN
0378-4266

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This paper proposes a model in which firm diversification acts as an efficient form of nonpecuniary compensation for the manager. In the model diversification rewards the manager by reducing the likelihood of bankruptcy which in turn increases the expected value of his firm-specific human capital. U