gather information on investment projects. The initial owner has two tasks: monitoring the manager and supervising project …

can limit the interference of the large shareholder and can restore manager’s incentive to exert effort to become informed … on new investment projects without reducing the large shareholder’s incentive to monitor the manager. This results in …

We analyze the voting behavior of a board of directors that has to approve (or reject) an investment proposal with …

reduced-form bivariate equation. We modelgovernance, performance and the constraints on the firm’s investment decisions as …

work for. We reject, however, the efficient pay hypothesis as CEO pay and the demand for managers increases in Germany in … difficult times when the typical firm size shrinks. We find further that domestic and global competition for managers has …

findings suggest that, when managers engage in wasteful capital expenditures, welfare may decline if the cost of investment is …Using an agency model of firm behavior, the paper analyzes whether the cost of investment should be tax exempt. The … tax deductible, as commonly advocated. The extent to which the return on investment should be taxed depends on how the …

model with strategic interaction between managers and outside shareholders, we hypothesize that, while an increase in the …

their actual investment spending. Our empirical work is based on panel data for 193 Canadian firms. For the firms most … likely to be affected by Free Cash Flow agency problems, investment behavior appears to be guided by discount rates that are …