Albring, Susan M.; Khurana, Inder K.; Nejadmalayeri, Ali; … - In: Journal of Corporate Finance 17 (2011) 5, pp. 1445-1456
monitoring? Recent theory points to the role of managerial incentive compensation. Specifically, it is argued that managers will … borrow from financial intermediaries if their compensation is tied to firm performance. Additionally, it is noted that a more … optimal compensation scheme will induce managers to undertake intermediated loans only when the firm is sufficiently …