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This article models the duty of care as a response to moral hazard where the principal seeks to induce effort that is costly to the agent and unobservable by the principal. The duty of loyalty, by contrast, is modeled as a response to adverse selection where the principal seeks truthful...
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Do financial regulation advisors help their clients become more profitable? In this paper, we present a model where … compliance costs and higher profit advantages they confer may lead to more regulation. Regulators may furthermore tighten … regulation - with the expectation that financial service firms will adapt somehow. We present a fresh perspective on the Menon …
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This chapter examines the relation between private regulation, effectuated through contract, and the desirability of … compliance with such regulation, from the perspective of the fundamental precepts of contract law. Its purpose is to determine … contractual content, it may be valuable to reformulate questions of state regulation of contracts as questions of state control of …
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My study examines whether the process of complying with new accounting standards has positive spillover effects on operating efficiency and firm performance. Using the recent lease accounting standard change (ASC-842), I examine whether the requirement to capitalize operating leases increases...
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