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managers maximise their personal utility rather than the market value of equity. Their hedging strategy, therefore, is … faithfully communicate the firm's true probability of default, his hedging strategy will focus on the market value of debt and …Finance theory does not provide a comprehensive framework for explaining risk management within the imperfect financial …
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The motivation crowding effect suggests that an external intervention via monetary incentives or punishments may undermine (and under different indentifiable conditions strengthen) intrinsic motivation. As of today, the theoretical possibility of crowding effects is widely accepted among...
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