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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...
Persistent link: https://www.econbiz.de/10005764423
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...
Persistent link: https://www.econbiz.de/10005241803