We propose a theory of supervision with endogenous transaction costs. A principal delegates part of his authority to a … optimal contract trades-off the supervisor's incentives to reveal his information with an insurance motive. This contract can …

two competing theories that predict contradictory outcomes. Following social network theory, one would expect a positive … relation between social networks and firm performance, while agency theory in general and Bebchuk’s managerial power approach …, which is in line with the social network theory. Still, we find evidence in support of the argument that well-connected CEOs …

performance contracts, suggesting many face high-powered incentives. CEO's also face a real dismissal threat and financial … the likelihood that the CEO will receive an incentives-based contract, perhaps because governments appoint "bureaucrats …

consider explicitly the incentive problem between corporate headquarter and divisional managers using a standard Moral … managers, the redistribution of resources across divisions creates additional agency costs in a conglomerate. Moreover …