This paper considers the role of equity transfer to strategic alliance partners in mitigating the moral hazard problem that occurs if a participating firm faces some possibility of reallocating a part of the resources devoted to the joint project of the strategic alliance or retreating from the...

Given that an owner cannot commit to her timing strategy under a manager's hidden action, we consider (i) how the owner's timing decisions to launch a project and to replace the manager or change a project are determined, and (ii) how the optimal compensation contract for the manager is...

We explore how the timings of compensation payment and contract termination are jointly and optimally determined in a continuous-time principal—agent model under the discretionary termination policy of investors (the principal) when the agent has loss—averse preferences. Our theoretical...