explore the effect of this size-dependence regularity on moral hazard and investment, we develop a continuous-time agency …'s effort and the principal's investment decision, and the volatility is proportional to the square root of firm size. We … wages are back-loaded when firm size is small but front-loaded when it is large. Furthermore, there is under-investment in a …

test Besley and Ghatak's (2001) public-good version of the Grossman-Hart-Moore property rights theory. Consider two parties … party is the investor. While our experimental results provide support for the Grossman-Hart-Moore theory, they cast some …

with a risk-averse manager. If the investment level influences the riskiness of the investment project, the capital charge …. Contradicting conventional wisdom, we find that a higher personal income tax rate induces higher investment expenditures and … lower investment expenditures persists for pre-tax and after-tax performance measures as well as when the tax deductibility …

managers charge to asset owners. This obfuscation has, in turn, led to a distortion in the underlying incentives that asset … truly understand the ingredients and incentives in financial products is needed. In making our case, we draw parallels to … – often preferring organic foods. Similarly, as investors begin to understand the fees and costs in their investment products …

-based contract, makes investment decisions for a firm that faces time-varying volatility. The contract creates incentives that affect …This study provides evidence that managerial incentives, shaped by compensation contracts, help to explain the … empirical relationship between uncertainty and investment. We develop a model in which the manager, compensated with an equity …

We analyze information production incentives for traders in financial markets, when firms condition investment … lead to a market breakdown where information production ceases, and investment and firm value collapse. Our theory sheds …'s investment project increases with the ex ante likelihood the project will be undertaken. This generates an informational …

organizations have incentives to choose excessively risky portfolios, and overly correlate their portfolios with those of their …

This paper is an update of an earlier 2009 paper and analyzes the role of Tax Incentives in promoting investment, their …, the paper then examines the role of Investment Climate on the effectiveness of Incentives. Using cross-country data the … paper finds that fiscal Incentives are particularly ineffective in attracting Investment in countries with poor Investment …

the costs associated with investment in fiber-optic networks are likely recoverable in some markets, but that there is a … large gap between social and private incentives to invest …