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  • Benjamin E. Hermalin, Corporate Governance (NBER-TCER-CEPR Conference) (Journal of the Japanese and International Economies, volume 47, 2018), chap. 6, https://www.nber.org/books-and-chapters/corporate-governance-nber-tcer-cepr-conference/biased-monitors-corporate-governance-when-managerial-ability-mis-assessed.

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An important aspect of corporate governance is the assessment of managers. When managers vary in ability, determining...

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