Formal and Informal Contracting: Theory and Evidence

2017 ◽  
Vol 13 (1) ◽  
pp. 141-159 ◽  
Author(s):  
Ricard Gil ◽  
Giorgio Zanarone
Keyword(s):  
Contracting Theory

Stock-Based Incentives and Performance During the Credit Crisis

2011 ◽  
Vol 43 (6) ◽  
pp. 371-386
Author(s):  
Mariah Webinger
Keyword(s):  
Moral Hazard ◽  
Stock Ownership ◽  
Credit Crisis ◽  
Stock Performance ◽  
Bank Management ◽  
Contracting Theory ◽  
And Performance ◽  
Risky Projects

Stock incentives for bank management in the 1990s increased and may have allowed management too much freedom in making risk choices and ignited the credit crisis of 2008. Contracting theory suggests stock incentives will induce better stock performance; moral hazard theory suggests stock incentives will motivate managers to undertake risky projects. This study finds, in the period of 2005-2007, CEO options are associated with negative performance supporting moral hazard theory. However, stock ownership is associated positively with performance as measured by earnings, supporting contracting theory. Director options are associated positively with performance but are not significant in for stock ownership.

scholarly journals Contracting Theory with Competitive Interacting Agents

2019 ◽  
Vol 57 (2) ◽  
pp. 1157-1188 ◽  
Author(s):  
Romuald Elie ◽  
Dylan Possamaï
Keyword(s):  
Interacting Agents ◽  
Contracting Theory

Financial contracting theory

2008 ◽  
pp. 64-150 ◽  
Author(s):  
Milton Harris ◽  
Artur Raviv
Keyword(s):  
Financial Contracting ◽  
Contracting Theory

Contracting theory and accounting

2001 ◽  
Vol 32 (1-3) ◽  
pp. 3-87 ◽  
Author(s):  
Richard A. Lambert
Keyword(s):  
Contracting Theory
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