We consider the design of contracts in a principal-agent setting with two agents where each agent privately observes and reports to the principal a signal regarding the actions taken. We consider two cases: one where the agents observe the same signal and one where the agents observe different...

We model the relationship between an entrepreneur's monitoring of a manager's performance and the entrepreneur's choice of the firm's financial disclosure policy. The environment is characterized by incomplete contracting and the presence of informed traders. We show that the entrepreneur may...