DeVaro, Jed; Kim, Jin-Hyuk; Vikander, Nick - Økonomisk Institut, Københavns Universitet - 2014
This study investigates the structure of optimal incentives in a stochastic environment and provides evidence for the use of self-enforcing relational contracts. We show theoretically that under relational contracting, firms can credibly promise chief executive officers (CEOs) larger bonuses in...
