Showing 1 - 2 of 2
Persistent link: https://www.econbiz.de/10014339485
We develop a continuous-time model where a risk-neutral principal contracts with a CARA manager protected by limited liability to run a project. Its output can be increased by costly unobservable managerial effort, but it is liquidated if the manager quits. The manager can trade a market...
Persistent link: https://www.econbiz.de/10012942310