This paper analyzes certain effects of insider trading on the principal-agent problem in corporations. Specifically, we focus on those managerial choices that confront managers with the need to decide between options that produce different corporate value but do not differ in the managerial...

This paper studies certain effects of insider trading on the principal-agent problem in corporations. Specifically, we focus on insiders' choice among investment projects. Other things equal, insider trading leads insiders to choose riskier investment projects, because increased volatility of...

In discussing the market entry decision and the strategic interaction between an incumbent firm and an entrant the focus in the literature is on the different asymmetries that exist between the incumbent and the entrant. These asymmetries can be cost asymmetries, capacity asymmetries,...