Large risks, limited liability, and dynamic moral hazard

By Bruno Biais, Thomas Mariotti, Jean-Charles Rochet, Stéphane Villeneuve. 2010

304 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/2709d61062bbc1929a98ca0a695277ed5b49c399

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Citations in the corpus

Executive Compensation: A Modern Primer (2016, unknown): “29 The dynamic moral hazard models of DeMarzo and Sannikov (2006), DeMarzo and Fishman (2007), and Biais et al. (2007) assume risk neutrality, and so consumption smoothing is a nonissue.”
Dynamic CEO Compensation (2012, background): “We wish to show that the optimal contract is given by: ln c1 = g ′ (a∗) r1 2 + κ1, ln c2 = g ′ (a∗) (r1 2 + r2 ) + κ1 + k2 (12)”
The Limits of Limited Liability: Evidence from Industrial Pollution (2020, unknown): “More recent papers including Biais et al. (2010) and Chaigneau et al.”
Do Private Firms Invest Di erently than Public Firms? Taking Cues from the Natural Gas Industry∗ (2015, unknown): “…creates both adverse selection (e.g., Myers and Majluf (1984), and Bias and Mariotti (2005)) and moral hazard (e.g., Holmstrom and Tirole (1997), and Biais et al. (2010)) issues. their survey evidence that the most important reason to remain private is to retain control and ownership rights.”
Limits of Arbitrage (2010, unknown): “See also Biais et al. (2010), who show the converse result that investors reward overperforming managers by scaling up their firms. the only cost faced by arbitrageurs is risk.”
Calibrated Incentive Contracts (2013, unknown): “The use of downsizing in Biais et al. (2007, 2010) however is slightly different.”
Where the Risks Lie: A Survey on Systemic Risk (2017, unknown): “The literature on dynamic moral hazard studies how to deal with this problem, see, for example, Biais et al. (2010) or Freixas and Rochet (2013) for models deriving implications for systemic financial institutions.”