Moral Hazard with Excess Returns

M Blonski, U Lilienfeld-Toal - Available at SSRN 3505394, 2018 - papers.ssrn.com
We consider a public firm characterized by a moral hazard problem. A distinguished player
is a CEO or activist shareholder who (i) is unrestricted to trade shares and (ii) has discretion …

Excess returns and the distinguished player paradox

M Blonski, U von Lilienfeld-Toal - 2008 - econstor.eu
Suppose the value of a firm is endogenously determined by a manager's costly effort. We
call this manager a distinguished player if he also can trade shares of the firm on a market …

Excess Returns of Companies with a Distinguished Player

M Blonski, U Lilienfeld-Toal - Available at SSRN 1264810, 2009 - papers.ssrn.com
Arbitrage-free asset pricing theory suggests that equilibrium price and equilibrium value of a
firm coincide and correctly anticipate the equilibrium effort of a value-enhancing manager …