Blonski, Matthias; Lilienfeld-Toal, Ulf von - Center for Globalization and Europeanization of the … - 2008
Suppose the value of a ¯rm is endogenously determined by a manager\'s costly e®ort. We call this manager a distinguished player if he also can trade shares of the ¯rm on a market. Arbitrage-free asset pricing theory suggests that the equilibrium market price re°ects the value increasing...