We analyze investment decisions when information is costly, with and without delegation to an agent. We use a rational …-inattention model and compare it with a canonical signal-extraction model. We identify three "investment conditions". In "sour …" conditions, no information is acquired and no investment made. In "sweet" conditions, investment is made "blindly", i.e. without …

current CEO who may have considerable power. Having signed a contract, the agent chooses how much effort to make to acquire … problem; how much information to acquire and what investment decision to make. As a consequence, the equilibrium contracts in … model E involve both bonuses and penalties. We identify lower and upper bounds on these, and study how the bonus and bonus …

current CEO who may have considerable power. Having signed a contract, the agent chooses how much effort to make to acquire … problem; how much information to acquire and what investment decision to make. As a consequence, the equilibrium contracts in … model E involve both bonuses and penalties. We identify lower and upper bounds on these, and study how the bonus and bonus …

A simple contracting environment with a creditor who has wealth and a entrepreneur who has a two-period investment … creditor prefers a contract that commits him not to refinance if and only if the extent of moral hazard problem is sufficiently …

We study SPACs in a continuous-time delegated investment model. Our model is built upon three unique features of SPACs … control over investment approval. Due to the misalignment in incentives, the sponsor has an increasing incentive to propose … control over investment approval reduces everyone’s welfare. This adverse effect is more pronounced if entrepreneurs …

discussed the pros and cons of private equity and whether the investment class is a viable alternative.While some Board members … of key issues questioning its viability.Ultimately, like any other investment, pros and cons should be weighed according …

This study investigates the effects of economic cycles on abnormal value creation of buyouts (BO) and on the investment … corresponding PE funds, we find that investment activity of initial fund flows is slightly pro-cyclical, while reinvestment activity …

Using a sample of Real Estate Investment Trusts (REITs), we show that institutional investors exploit location …