CHENG, ING-HAW; HONG, HARRISON; SCHEINKMAN, JOSÉ A. - In: Journal of Finance 70 (2015) 2, pp. 839-879
type="main" <title type="main">ABSTRACT</title> <p>Many believe that compensation, misaligned from shareholders’ value due to managerial entrenchment, caused financial firms to take risks before the financial crisis of 2008. We argue that, even in a classical principal-agent setting without entrenchment and with exogenous...</p>
