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Staged-Financing Contracts with Private Information

Wang, Hefei - 2008

This paper studies the use of incentive contracts in the Bolton-Scharfstein (1990) model when some agents in the population are technically constrained from falsifying reports and stealing cash. The original Bolton-Scharfstein contract may not be optimal for a large range of parametric values....

Persistent link: https://www.econbiz.de/10014057550

Optimal Contract Under Moral Hazard with Soft Information

Roger, Guillaume - 2012

I study a model of moral hazard with soft information: the agent alone observes the stochastic outcome of her action; hence the principal faces a problem of ex post adverse selection. With limited instruments the principal cannot solve these two problems independently; the ex post incentive for...

Persistent link: https://www.econbiz.de/10013111160

Frictional Asset Reallocation under Adverse Selection

Madison, Florian - 2018

The aim of this paper is to study asset reallocation in financial markets subject to search, bargaining, and information frictions, and to analyze the impact of monetary policy on equilibrium outcomes. The main results show that private information regarding the quality of an asset impairs its...

Persistent link: https://www.econbiz.de/10012932737

Long-Term Capital Budgeting and Incentive Mechanism

Gao, Buqu - 2017

evolution. We show that the optimal allocation can be implemented by a simple mechanism with a one-time report of the initial …

Persistent link: https://www.econbiz.de/10012970774

Asymmetric information allocation to avoid coordination failure

Moriya, Fumitoshi; Yamashita, Takuro - 2018

Persistent link: https://www.econbiz.de/10013489815

Agency theory and uncertainty in organizations : an evaluation

Nilakant, V. - In: Organization studies : an international … 15 (1994) 5, pp. 649-672

Persistent link: https://www.econbiz.de/10001170266

Delegating Resource Allocation : Multidimensional Information vs. Decisions

Galperti, Simone - 2015

This paper studies the problem of delegating the allocation of resources across multiple categories to an agent who has … cap on the allocation to each category, a generalization of Holmström's (1977) ‘interval controls' to multidimensional … allocation. Such limits are more likely to be optimal when the conflict is weaker and the agent's information is also on …

Persistent link: https://www.econbiz.de/10013028127

Delegated portfolio management: a survey of the theoretical literature

Stracca, Livio - 2005

This paper provides a selective review of the theoretical literature on delegated portfolio management as a principal-agent relationship. The main focus of the paper is to review the analytical issues raised by the peculiar nature of the delegated portfolio management relationship within the...

Persistent link: https://www.econbiz.de/10011604566

Venture capital, double-sided adverse selection, and double-sided moral hazard

Houben, Eike - 2002 - First Version: March 2002, this Version: December 2002

The paper offers a new explanation for the widely observed use of redeemable and convertible preferred stock in venture capital finance. Redeemable and convertible preferred stocks can be used to endogenously allocate cash flow and control rights as a function of the state of nature, the...

Persistent link: https://www.econbiz.de/10011281511

Asymmetric information and the securitization of SME loans

Albertazzi, Ugo; Bottero, Margherita; Gambacorta, Leonardo - 2021

Using all loans granted to firms recorded in the Italian credit register, we estimate correlations between risk-transfer and default probabilities to gauge the severity of informational asymmetries in the loan securitization market. First, the analysis confirms the presence of information...

Persistent link: https://www.econbiz.de/10012487672