The coefficient on INTER is negative and significant as hypothesized (p < 0.05) indicating that for
labor-intensive firms, the likelihood that the bonus plan contains non-financial measures in addition to
financial measures increases when the firm has a hierarchical pay structure and the probability is lower
that these firms rely solely on traditional financial measures. The graph of the interaction term, which
plots the first derivative of the estimated base model with respect to the reliance on the use of human
capital, is shown in Fig. 2.