Marketable Incentive Contracts and Capital Structure Relevance
研究债务融资能否通过限制经理人自由现金流来提升企业价值，发现激励合约常是更优解，但二级市场交易会削弱激励效果，从而恢复债务融资的价值。
ABSTRACT This article investigates the claim that debt finance can increase firm value by curtailing managers' access to “free cash flow.” We first show that incentive contracts that tie the managers' pay to stockholder wealth are often a superior solution to the free cash flow problem. We then consider the possibility that the manager can trade on secondary capital markets. Liquid secondary markets are shown to undermine management incentive schemes and, in many cases, to restore the value of debt finance in controlling the free cash flow problem.