Abstract
We provide a simple asymmetric information model showing that, in contrast to portfolio diversification arguments, there is a natural complementarity between executive options and stock ownership. Moreover, managers can be made worse off by being granted more executive options.
Original language | English |
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Pages (from-to) | 12-15 |
Journal | Economics Letters |
Volume | 114 |
Issue number | 1 |
DOIs | |
Publication status | Published - Jan 2012 |