Title: The Optimal Contract within Principal-agent Framework——the Equilibrium among the Compensation Contracts,Private Benefits and Protection of Shareholders
Abstract: The literature on corporate governance traditionally deals with the conflict of interest between managers and shareholders.The separation of ownership and control put forward by Jensen and Meckling in 1976 is considered as the the quintessential agency problem,where managers,say,may make decisions that maximize their own utility but fail to maximize shareholder value.The paper will use the analytical framework to reexamine the debate about the value diversion through the moral hazard and adverse selection.
Publication Year: 2006
Publication Date: 2006-01-01
Language: en
Type: article
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