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The impacts of rising competition on innovation remain unclear, and often depend on country context. This column analyses the impact of increased import competition from China on innovation by Chilean firms. It finds a negative overall impact of competition on innovation indicators. Low-productivity firms in particular see declines across all innovation measures, while the
Researchers from University of Mannheim published a new paper in the Journal of Marketing that examines the effect of wage inequality on customer satisfaction and firm performance. The study, forthcoming in the Journal of Marketing, is titled "Wage Inequality: Its Impact on Customer Satisfaction and Firm Performance" and is authored by Boas Bamberger, Christian Homburg, and Dominik M. Wielgos. Irrespective of wage cuts and employee layoffs, the wages of top managers rose to record levels during the pandemic and wage inequality continues to grow worldwide. However, according to a 2015 OECD r...
Abstract Using a large sample of China’s listed firms between 2005 and 2015, we find that domestic mutual funds have a positive effect on the CEO pay-performance relationship, and this effect becomes stronger when their ownership is higher and closer to the controlling shareholder’s ownership. This effect is stronger in non-state-owned enterprises (non-SOEs), firms facing weaker industry competition incentives, and firms located in more developed regions. However, Qualified Foreign Institutional Investors (QFIIs) do not have such an influence. Overall, our study contends that the effectiv...