The productivity of smallholder coffee cultivation is declining due to ageing trees, making the rejuvenation of coffee trees with superior seeds essential. This rejuvenation process requires the support and participation of various stakeholders, including the government, banks, investors,...

Theory suggests that by lending to a firm, inside banks gain an informational advantage over non-lender outside banks. This informational gap hinders borrowers from switching lenders due to a winner's curse faced by competing outside banks, leading to hold-up problems. In this paper, we show...

We study a moral hazard model in which the output is stochastically determined by both the agent's hidden effort and an uncertain state of the world. We investigate how the contractibility of the ex-post realization of the state affects the principal's incentive to provide information. While...

A principal incentivizes an agent to maintain compliance and to truthfully announce any breaches of compliance. Compliance is imperfectly controlled by the agent's private effort choices, is partially persistent, and is verifiable by the principal only through costly inspections. We show that in...

A common justification for shareholder primacy is that shareholders' financial interests give them an incentive to pursue projects that increase social welfare. This alignment of interests occurs because shareholders hold a residual claim on firm value: Because they receive only what remains...