Executive Effort and Selection of Risky Projects
研究高管在激励下如何选择风险项目，发现高管与股东在项目选择上存在分歧，可能导致风险投资不足或过度。
This article examines the incentives of executives to adopt risky projects. The agency problem considered is that of motivating the executive to expend effort to generate information about the profitability of projects and to select the best project conditional upon the information that his effort generates. We show that the executive and the principal will not always agree regarding which project is best. We provide conditions under which this conflict of interest leads (from the principal's perspective) to either an underinvestment or an overinvestment in risky projects.