We develop a dynamic equilibrium model to derive testable time-series and cross-sectional implications for the endogenous relations among ownership concentration, managerial incentives, and asset prices. For a given firm at any date, ownership concentration is positively related to managerial...

We develop a model to show how agency conflicts, free rider effects and monitoring costs interact to affect optimal team size and workers' incentive contracts. Team size increases with project risk, decreases with profitability, and decreases with monitoring costs as a proportion of output. Our...

We develop a dynamic equilibrium model to derive the endogenous relations among firms' ownership structures, managerial incentives and asset returns. Ownership concentration is positively related to managerial incentives (PPS), but is negatively related to its expected stock (dollar) return and...