期刊名称：Discussion Paper Series / Department of Economics, Monash University
出版年度：2013
卷号：1
出版社：Monash University
摘要：We study an optimal contracting problem when the manager has self-esteem concerns and access to a hedging market. We show that the manager's equilibrium hedging position increases when he is more risk-averse, more uncertain about his own ability, or has stronger self-esteem concerns. Each element of managerial hedging and self-esteem concerns added to an otherwise standard agency model increases the equilibrium pay-performance sensitivity. The agency cost increases as the manager's self-esteem concerns become stronger, but the manager's access to hedging opportunities itself does not change the agency cost. We also provide conditions for the positive relationship between risk and incentives.
