for the post-issue operating performance of mandatory convertible issuers. We test the implications of our theory using a …-term abnormal stock performance of mandatory convertible issuers. The evidence supports the implications of our theory. …

The optimal organizational form and optimal incentive contract are characterized for a team of money managers, assuming … return and the correlation of returns between managers. If the managers are risk tolerant, then a noncooperative team … managers. As the risk aversion of both the investor and the managers increases, cooperation among managers becomes the optimal …