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Progressive Screening : Long-Term Contracting with a Privately Known Stochastic Process

Boleslavsky, Raphael; Said, Maher - 2013

We examine a model of long-term contracting in which the buyer is privately informed about the stochastic process by which her value for a good evolves. In addition, the realized values are also private information. We characterize a class of environments in which the profit-maximizing long-term...

Persistent link: https://www.econbiz.de/10014043776

Dynamic Contracting Under Imperfect Public Information and Asymmetric Beliefs

Giat, Yahel - 2013

-term contracts that alter the intuition gleaned from previous literature. Optimism has a first-order impact on incentives, investment …

Persistent link: https://www.econbiz.de/10013078633

Dynamic Contracting Under Imperfect Public Information and Asymmetric Beliefs

Giat, Yahel - 2013

-term contracts that alter the intuition gleaned from previous literature. Optimism has a first-order impact on incentives, investment …

Persistent link: https://www.econbiz.de/10013095153

Chapter 2. Agency, Information and Corporate Investment

Stein, Jeremy C. - 2003

This essay surveys the body of research that asks how the efficiency of corporate investment is influenced by problems … that the marginal return to investment in firm i is the same as the marginal return to investment in firm j ? Second, do … capital budgeting process get within-firm allocations right, so that the marginal return to investment in firm i ’s division A …

Persistent link: https://www.econbiz.de/10014023874

Optimal Lending Contract with Uncertainty Shocks

Villacorta, Alonso - 2014

behavior. A line of credit appears in the optimal long term contract similar to (DeMarzo and Fishman, 2007). The novelty of the … contract is that the credit limit varies over time, as a function of the state of volatility. Credit limit does not vary … monotonically over firms. When uncertainty increases, credit limits are reduced for highly constraint firms, because the frictions …

Persistent link: https://www.econbiz.de/10013060348

Optimal Contracts for Risk Managers

Jung, Jin Yong - 2018

This study analyzed the principal-agent problem, in which the agent performs risk management tasks, and considered the cost minimization problem of the principal, the objective of which is to design the cheapest contract inducing a target effort. Our results confirm that a one-step bonus...

Persistent link: https://www.econbiz.de/10012926192

Partial Ownership and Strategic Alliances with Reallocation of Corporate Resources

Osano, Hiroshi - 2012

viewpoint of specific investment incentives in strategic alliances under the possibility of the reallocation of corporate …

Persistent link: https://www.econbiz.de/10013117049

Optimal Security Design Under Asymmetric Information and Profit Manipulation

Koufopoulos, Kostas - 2019

We consider a model of external financing in which entrepreneurs are privately informed about the quality of their projects and seek funds from competitive financiers. The literature restricts attention to monotonic or ‘manipulation proof' securities and finds that straight debt is the unique...

Persistent link: https://www.econbiz.de/10012904442

Optimal Security Design under Asymmetric Information and Profit Manipulation

Koufopoulos, Kostas - 2018

We consider a model of external financing in which privately informed entrepreneurs seek funds from competitive financiers. The literature restricts attention to monotonic securities and finds that straight debt is the uniquely optimal. Monotonicity is justified by the argument that it would...

Persistent link: https://www.econbiz.de/10012937909

Capital Structure Choice Under Asymmetric Information and Overconfident Managers

Ji, Xiehua - 2020

Traditional pecking-order theory (POT) cannot explain why good-quality firms issue equity: this is often considered to be an empirical puzzle. We build a model of capital structure that has elements of both asymmetric information and behavioral finance. Firms have private information about their...

Persistent link: https://www.econbiz.de/10012849787