Damage measures for inadvertant breach of contract

International Review of Law and Economics193319-331IRLE

Optimal Incentive Contracts for Loss-Averse Managers: Stock Options versus Restricted Stock Grants

This paper provides an explanation for the widespread use of stock option grants in executive compensation. It shows that the optimal incentive contract for loss-averse managers must contain a substantial portion of stock options even when it should consist exclusively of stock grants for "classical" risk-averse managers. The paper also provides an explanation for the drastic increase in the risk-adjusted level of CEO compensations over the past two decades and argues that more option-based compensation should be used in firms with higher cash flow volatility and in industries with a higher degree of heterogeneity among firms. Copyright 2006, The Eastern Finance Association.

Ex ante costs of violating absolute priority in bankruptcy

Issued under the auspices of the Centre's research programme in Financial EconomicsAvailable from British Library Document Supply Centre-DSC:3597.9512(no 2914) / BLDSC - British Library Document Supply CentreSIGLEGBUnited Kingdo

The case against board veto in corporate takeovers

Also available via the InternetAvailable from British Library Document Supply Centre-DSC:3597.9512(no 3445) / BLDSC - British Library Document Supply CentreSIGLEGBUnited Kingdo

Optimal defaults for corporate law evolution

Also available via the InternetAvailable from British Library Document Supply Centre-DSC:3597.9512(no 3140) / BLDSC - British Library Document Supply CentreSIGLEGBUnited Kingdo

Federal intervention to enhance shareholder choice

Also available via the InternetAvailable from British Library Document Supply Centre-DSC:3597.9512(no 3006) / BLDSC - British Library Document Supply CentreSIGLEGBUnited Kingdo

Executive compensation in America Optimal contracting or extraction of rents?

Also available via the InternetAvailable from British Library Document Supply Centre-DSC:3597.9512(no 3112) / BLDSC - British Library Document Supply CentreSIGLEGBUnited Kingdo