Title: Reputation Effect and Contract of Manager′s Reward
Abstract:We study reputation effect to contract of manager. Firstly, we analyze the constituting of a manager utility. We lead the reputation that is regarded inexplicit incentive into the manger′s utility fun...We study reputation effect to contract of manager. Firstly, we analyze the constituting of a manager utility. We lead the reputation that is regarded inexplicit incentive into the manger′s utility function. Later, we establish a model of manager′s reward in asymmetric information condition. We analyze the parameter of reputation′s effect to factor in the contract. We explain the principal can use manager′s effect to design a optimal contract of reward. Finally, we give out the main conclusions.Read More
Publication Year: 2004
Publication Date: 2004-01-01
Language: en
Type: article
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