"In contrast to the hold-up view, we find neither wage increases (or decreases) nor increased rent sharing – consistent with, and in fact helping rationalize, our first key finding that capital formation is not curbed in shared governance firms..."Unfortunately, our administrative data miss executive compensation due to the social security cap, and executives are not clearly identified in the occupational code. We sourced a data set on executive compensation (a survey by Kienbaum Consulting covering 4,055 German firms), but due to the very small sample size of matched observations incorporated even within a five-year window around the 1994 reform (fewer than 200), we were unable to estimate effects on executive compensation with any meaningful precision."