Motivating Entrepreneurial Activity in a Firm
研究企业如何设计投资与薪酬政策，激励掌握私有信息的经理人投入创业努力并如实报告信息，以改善投资机会质量。
We examine the problem of motivating privately informed managers to engage in entrepreneurial activity to improve the quality of the firm's investment opportunities. The firm's investment and compensation policy must balance the manager's incentives to provide entrepreneurial effort and to report private information truthfully. The optimal policy is to underinvest (compared to first-best) and provide weak incentive pay in low-quality projects and overinvest (compared to first-best) and provide strong incentive pay in high-quality projects.