We argue that risk sharing motivates the bank-wide structure of bonus pay. In the presence of financial frictions that … make external financing costly, the optimal contract between shareholders and employees involves some degree of risk … to rationalize with incentive theories of bonus pay - but support an important risk sharing motive. In particular …

This paper studies the optimal risk-sharing between an insurer and a reinsurer. The insurer purchases reinsurance for … risk-control and decides her retention level with an objective to minimize her ruin probability. The reinsurer has control …

businesses are exposed to a higher level of litigation risk than others.Next, I analyze each company's form contracts for …This preliminary study examines whether the presence or absence of certain terms in a company's form contracts can … reveal its level of litigation risk. First, I estimate the risk of independent contractor misclassification litigation for …

firms' exposure to an important source of risk influences the design of their incentive-compensation contracts …We examine how executives' ability to control their firm's exposure to risk affects the design of their incentive …-compensation contracts. Using the introduction of exchanged-traded weather derivatives as a natural experiment, we find that executives who …

This paper examines the Risk Management and Contract Design aspects of Public Private Partnerships. Part I begins with … question, it identifies risk allocation and risk sharing as a central feature of PPPs today. Part II attempts to see when PPPs …. Part III examines Risk in four parts: a profile of risk in PPPs, risk categories, risk allocation principles & strategies …

provisions of oilfield contracts in Malaysia. This paper seeks to analyse the deficiencies of the risk allocation provisions of …The unequal bargaining power of the parties in the oil and gas industry has lead to the imbalanced contractual risk … allocation in oilfield contracts in Malaysia. In this regard, there is a prospect that the operators pass an unfair share of the …