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DM pay is more sensitive to other-division performance if the DM\u2019s division is related to the rest of the firm, if the DM\u2019s division has fewer growth opportunities, and if the DM\u2019s division receives less capital from the rest of the firm. Consistent with optimal contracting view, DMs receive greater pay for other-division performance in better-governed firms. Overall, our evidence suggests that DM compensation is structured to account for the information and agency problems in multidivision firms. <\/jats:p> The Internet appendix is available at https:\/\/doi.org\/10.1287\/mnsc.2016.2672 . <\/jats:p> This paper was accepted by Amit Seru, finance. <\/jats:p>","DOI":"10.1287\/mnsc.2016.2672","type":"journal-article","created":{"date-parts":[[2017,3,20]],"date-time":"2017-03-20T17:26:03Z","timestamp":1490030763000},"page":"2856-2874","source":"Crossref","is-referenced-by-count":15,"title":["Managerial Compensation in Multidivision Firms"],"prefix":"10.1287","volume":"64","author":[{"given":"Shashwat","family":"Alok","sequence":"first","affiliation":[{"name":"Indian School of Business, Hyderabad, Telangana 500 032, India"}]},{"given":"Radhakrishnan","family":"Gopalan","sequence":"additional","affiliation":[{"name":"Olin Business School, Washington University in St. Louis, St. Louis, Missouri 63130"}]}],"member":"109","reference":[{"key":"B1","doi-asserted-by":"publisher","DOI":"10.1111\/1540-6261.00579"},{"key":"B2","doi-asserted-by":"publisher","DOI":"10.2308\/accr.1999.74.1.87"},{"key":"B3","doi-asserted-by":"publisher","DOI":"10.1086\/338240"},{"key":"B4","doi-asserted-by":"publisher","DOI":"10.1111\/j.1475-679X.2004.00127.x"},{"key":"B5","doi-asserted-by":"publisher","DOI":"10.1016\/S0165-4101(00)00012-4"},{"key":"B6","volume-title":"Pay Without Performance","author":"Bebchuk L","year":"2004"},{"key":"B7","doi-asserted-by":"publisher","DOI":"10.1093\/rfs\/hhn099"},{"key":"B8","doi-asserted-by":"publisher","DOI":"10.1016\/j.jfineco.2011.05.006"},{"key":"B9","doi-asserted-by":"publisher","DOI":"10.1093\/rfs\/hhg024"},{"key":"B10","doi-asserted-by":"publisher","DOI":"10.1016\/0165-4101(94)90032-9"},{"key":"B11","doi-asserted-by":"publisher","DOI":"10.1016\/0165-4101(95)00416-5"},{"key":"B12","doi-asserted-by":"publisher","DOI":"10.1016\/j.jacceco.2003.09.005"},{"key":"B13","doi-asserted-by":"publisher","DOI":"10.1257\/aer.91.3.525"},{"key":"B14","doi-asserted-by":"publisher","DOI":"10.2308\/accr.2009.84.4.1119"},{"key":"B15","doi-asserted-by":"publisher","DOI":"10.1016\/S0304-405X(98)00058-0"},{"key":"B16","doi-asserted-by":"publisher","DOI":"10.1086\/209657"},{"key":"B17","doi-asserted-by":"publisher","DOI":"10.1111\/1540-6261.00577"},{"key":"B18","doi-asserted-by":"publisher","DOI":"10.1162\/00335530360535162"},{"key":"B19","doi-asserted-by":"publisher","DOI":"10.1093\/rfs\/hhr060"},{"key":"B20","doi-asserted-by":"publisher","DOI":"10.1111\/jofi.12085"},{"key":"B21","doi-asserted-by":"publisher","DOI":"10.1093\/rfs\/hhn085"},{"key":"B22","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.2016.2693"},{"key":"B23","doi-asserted-by":"publisher","DOI":"10.2307\/3003320"},{"key":"B24","doi-asserted-by":"publisher","DOI":"10.1111\/j.1540-6261.2009.01470.x"},{"key":"B25","doi-asserted-by":"publisher","DOI":"10.1016\/j.jfineco.2011.09.005"},{"key":"B26","doi-asserted-by":"publisher","DOI":"10.1016\/S0165-4101(01)00030-1"},{"key":"B27","doi-asserted-by":"publisher","DOI":"10.2307\/2491081"},{"key":"B28","doi-asserted-by":"publisher","DOI":"10.1111\/1540-6261.00440"},{"key":"B29","doi-asserted-by":"publisher","DOI":"10.1016\/B978-0-444-53265-7.50022-6"},{"key":"B30","doi-asserted-by":"crossref","unstructured":"Masulis RW, Zhang S (2013) Compensation gaps among top executives: Evidence of tournament incentives or productivity differentials? 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