Cerasi, Vittoria; Oliviero, Tommaso - Dipartimento di Economia, Metodi Quantitativi e … - 2014
This paper analyzes the relation between CEOs monetary incentives, financial regulation and risk in banks. We present a model where banks lend to opaque entrepreneurial projects to be monitored by managers; managers are remunerated according to a pay-for-performance scheme and their effort is...