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- W2093967072 abstract "In our model risk-neutral shareholders need to motivate a manager to select among projects with different risks, and to work hard in implementing the chosen project. Curvature of the manager's compensation contract as a function of profit affects his attitude toward project risk. The optimal curvature depends on the trade-off between controlling project risk and motivating effort. The analysis predicts greater option-based compensation when there are desirable risky growth opportunities (proxied by Tobin's q or R&D expenditures) and less option compensation when there are effective monitoring institutions (such as outside directors and bank lenders)." @default.
- W2093967072 created "2016-06-24" @default.
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- W2093967072 date "1992-09-01" @default.
- W2093967072 modified "2023-10-12" @default.
- W2093967072 title "Risk, managerial effort, and project choice" @default.
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- W2093967072 doi "https://doi.org/10.1016/1042-9573(92)90004-w" @default.
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