new risk-factor (that we call active management risk) is brought into the analysis. This new beta is deffined as the … active management risk is positive and signifficant especially after 1990, when institutional investors have become the … expected utility (an increasing and concave function, in order to accommodate risk aversion) of final wealth minus a benchmark …

credible regulation and strong supervision, the shareholders of this institution might deliberately let its managers take … excessive risk. We propose a solution to this problem, showing how insurance against systemic shocks can be provided without … importantly establishing a Systemic Risk Authority endowed with special resolution powers, including the control of bankers …

. Bankruptcy costs alone generate a non-trivial tradeoff between the benefit of coinsurance and the cost of risk contamination …

The paper explores the consequences that relying on different behavioral assumptions in training managers may have on … and self-interest) is good for technical posts but may also lead future managers to rely excessively on rational and …. In contrast, human assumptions used in management theories, because of their diverse, implicit and even contradictory …

In most firms, managers periodically assess workers' performance. Evidence suggests that managers withhold information …

executive’s attitude toward risk-taking. We, also, study pay-performance sensitivity of such contracts. We show that the terms … of a bonus contract can dramatically impact both risk-taking behavior as well as pay-performance incentives. Several …

In this paper we study delegated portfolio management when the manager's ability to short-sell is restricted. Contrary … to previous results, we show that under moral hazard, linear performance-adjusted contracts do provide portfolio managers … with incentives to gather information. The risk-averse manager's optimal effort is an increasing function of her share in …

powerful enough incentives the costs of switching teams and measuring team productivity must be bellow. Risk allocation may …Under team production, those who monitor individual productivity are usually the only ones compensated with a residual … that varies with the performance of the team. This pattern is efficient, as is shown by the prevalence of conventional …