Earnings and price-based compensation contracts in the presence of discretionary trading and incomplete contracting
分析当经理利用私有信息交易、股价基于多种信息理性设定时，如何以报告盈余和股价为基础设计薪酬合同，并考察薪酬对经济变化的比较静态。
The paper analyzes the use of reported accounting earnings and price as a basis for compensating a manager when he trades on private information, and share price is set rationally based on privately held information, publicly available and contractible information, and publicly available but noncontractible information. In addition, we analyze the comparative statics of the compensation on reported earnings and price with respect to changes in the economy.