Showing 1 - 10 of 113
This paper, instead of focusing on agency cost, analyzes the role of risk-sharing under problems of enforceability (default) to explain the optimal determination of capital structure. Optimal contract structure presents equity and debt.
Persistent link: https://www.econbiz.de/10005697699
We base a contracting theory for a start-up firm on an agency model with observable but nonverifiable effort, and renegotiable contracts. Two essential restrictions on simple contracts are imposed: the entrepreneur must be given limited liability, and the investor's earnings must not decrease in...
Persistent link: https://www.econbiz.de/10005498043
We consider a model in which the principal-agent relation between inside shareholders and the management affects the firm value.We study the effect of financing the project with risky debt in changing the incentive for a risk-neutral shareholder (the principal) to implement the project-value...
Persistent link: https://www.econbiz.de/10011091167
We investigate the presence of moral hazard and advantageous or adverse selection in a market for supplementary health insurance. For this we specify and estimate dynamic models for health insurance decisions and health care utilization. Estimates of the health care utilization models indicate...
Persistent link: https://www.econbiz.de/10005504294
We analyze risk sensitive incentive compatible deposit insurance in the presence of private information when the market value of deposit insurance can be determined using Merton's (1977, 3-11) formula.
Persistent link: https://www.econbiz.de/10005486537
This paper provides a survey on optimal insurance when insurers and policy holdes have symmetric information about the distribution of potential damages. When transaction costs are proportional to transfers, we show that 1)there is at least one state of the world where no indemnity is paid, 2)...
Persistent link: https://www.econbiz.de/10005486545
This article examines, under the Dual Theory of Choice (Yaari (1987)), the classical results and their extensions on self-insurance, self-protection and market insurance obtained by Ehrlich and Becker (1972) under the expected utility hypothesis. In particular, background risk, non-reliability,...
Persistent link: https://www.econbiz.de/10005486627
We introduce nonlinear panel data models for individual risl management and control. Our approach extends traditional models by allowing for nonlinearities in input variables and unobserved individual heterogeneity with possible temporal dependence. This permits us to develop nonlineat models...
Persistent link: https://www.econbiz.de/10005486783
This paper looks at social insurance of short term absence from work. The chief concern is with efficiency properties of full coverage. That arrangement is reviewed and criticized here in light of received theory. A main point is that positive loading of the premium implies less than full...
Persistent link: https://www.econbiz.de/10005435874
The objective of this paper is to present the role and importance of internal control systems in good risk management practice, with a particular emphasis on the internal audit and compliance functions within such a framwork. Our focus is on the Life and Health Insurance industry in Canada.
Persistent link: https://www.econbiz.de/10005474677