We study the dynamic general equilibrium of an economy where risk averse shareholders delegate the management of the firm to risk averse managers. The optimal contract has two main components: an incentive component corresponding to a non-traded equity position and a variable "salary" component...

Purpose – To explore the assumptions underlying the traditional “principles of administration” in the light of the rise of interest in corporate social responsibility, business ethics and corporate governance and to link revised principles to practical stakeholder models, using, for...

This essay reviews the family of models that seek to provide aggregate risk based explanations for the empirically observed equity premium. Theories based on non-expected utility preference structures, limited financial market participation, model uncertainty and the small probability of...

In the business-and-society literature and in the general press on whether business fulfils its social role responsibly. Business ethics, corporate social responsibility and corporate governance movements have been developed in recent decades as responses to a growing sense of corporate...