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We present a model of ESG integration where borrowers can deviate from ESG promises ex-post. Borrowers are incentivized to pursue ESG projects only when lenders can charge a high borrowing rate, which decreases the borrowers’ private benefit from pursuing financial returns. In the presence of...
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The motivation crowding effect suggests that an external intervention via monetary incentives or punishments may …
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This paper uses contract theory to suggest simple contract designs that could be used by the Global Fund. Using a basic …
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Do international trade and technological change influence how firms create incentives for human capital? I present a … their managers. Increases in managerial reservation wages lead to a reduction in corporate governance investments and a rise … in performance compensation since monitoring managers becomes less efficient. Using data on CEO compensation and …
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