We explore the timing of the replacement of a manager as an important incentive mechanism, using a real options approach in a situation where the timing of the decision to replace the manager is related to a major change in a firm's strategies that involves spending large amounts of various sunk...

This article examines the effect of securitization on the ex ante monitoring and ex post liquidation decisions of the issuer in the context of adverse selection. It characterizes those decisions as explicit functions of observable parameters that are related to securitization. If liquidity...

This paper considers the information content of stock reports when an investment bank offers her affiliated analyst a compensation contract that may induce him to misrepresent his stock report under uncertainty in investment banking opportunities. Our results suggest that the information content...

This paper considers whether or not the first-best level of firm-specific human capital investment is attained by the use of stock option plans for workers and the choice of the method of payment for acquisitions even though workers are threatened with the possibility of a divestiture and...

This paper explores the interaction between the internal corporate control mechanism of acquiring firms - managerial ownership and board dismissal of managers - and the incidence of efficient takeovers under asymmetric information about the type of manager of the acquiring firms. The internal...

This paper considers the role of stock-based compensation, such as restricted stock grants and stock options, in mitigating the moral hazard problem in teams in which agents who face the possibility of turnover must choose a level of effort or investment within working relationships with the...

This paper considers how a Chief Executive Officer (CEO) designs a bargaining process for the determination of his or her own compensation by selecting the level of independence of board members in order to influence the compensation determination process within the board and the monitoring...

This paper considers whether or not the first-best level of firm-specific human capital investment is attained by the use of stock option plans for workers and the choice of the method of payment for acquisitions even though workers are threatened with the possibility of a divestiture and...