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Ties that Truly Bind: Noncompetition Agreements, Executive Compensation, and Firm Investment

Mark J. Garmaise.

in The Journal of Law, Economics, and Organization

August 2011; p ublished online November 2009 .

Journal Article. Subjects: Information, Knowledge, and Uncertainy; Contract Law; Wages, Compensation, and Labour Costs; Mobility, Unemployment, and Vacancies; Corporate Governance. 19105 words.

We study the effects of noncompetition agreements by analyzing time-series and cross-sectional variation in the enforceability of these contracts across US states. We find that tougher...

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