Economic theory-empirical evidence justify high compensation

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The Productivity Commission's Inquiry into Executive Compensation in Australia reported that "strong growth in executive remuneration from the 1990s to 2007, and instances of large payments despite poor company performance, have fuelled community concerns that executive remuneration is out of control." Discuss whether economic theory and the available empirical evidence justifies high executive compensation. In your assignment you must discuss at least three relevant research papers (published in economics journals) and discuss their findings. Credit will be given for finding appropriate papers and referencing all papers appropriately. The papers given in the ‘empirical evidence' section below may contribute to satisfying this requirement, but you are recommend to choose three or more economics journals papers from other resources in order to gain a better grade.

Reference no: EM13933299

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