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We examine whether a large shareholder can alleviate conflicts of interest between managers and shareholders through … shareholders' perspective. Our results are consistent with empirical findings on the interaction between managers and minority …
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We investigate how boards use discretion in contracting to incorporate private information about managerial performance. Building from the literature documenting that loss firms' publicly available valuation allowance (VA) disclosures contain value-relevant private information, we show the VA...
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We propose a family of incentive contracts that can attract some fund managers who are favored by investors and deter … explicitly on the utilities of the managers and investors nor have a menu of choices. The contracts have two crucial components …
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When designing incentives for a manager, the trade-off between insurance and a "good" allocation of effort across various tasks is often identified with a trade-off between the responsiveness (sensitivity, precision, signal-noise ratio) of the performance measure and its similarity (congruity,...
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