Optimal Design of Internal Disclosure
نویسنده
چکیده
This paper studies the joint design of optimal incentive pay and information disclosure in a dynamic moral hazard problem. The principal is more informed about the outcomes of agent’s actions and actively manages information available to the agent. Sharing information with the agent increases productivity (for example, allowing a better allocation of resources or effort), but increases the cost of providing incentives. The optimal contract features incomplete information sharing with positive information shared more than negative information and past negative information leading to less information sharing in the future.
منابع مشابه
Explain the causes of business unit failure using disclosure of independent auditors' reports
Auditing as one of the mechanisms of corporate governance plays an important role in identifying financial crises. In accordance with auditing standards, the auditor is required to disclose any uncertainties that are relevant to the firm's ability to continue operating in the future. The purpose of the present study is to describe the causes of business failure by disclosing the auditor's repor...
متن کاملSome Factors that Influence the Quality of Voluntary Disclosure
The purpose of this study is to investigate the factors affecting the evaluation of the quality of voluntary disclosure, given that the factors used in internal research due to having an external source and focusing on the number of disclosures may not be an appropriate criterion for measuring the quality of information disclosure, so, it is necessary to provide new influencing factors on the e...
متن کاملSelecting Optimal Dimensions of Internal Tube in Tube-in-Tube Structural Systems Based on Structural Parameters
Tubular structural systems are one of the most common types of systems in high-rise structures. In the early days of this system, there were imperfections in its design which were overcome over time. The most important modification to rectify these defects is the use of a series of internal frames in addition to the peripheral frames and new systems in the center of the plan to eliminate design...
متن کاملThe Economic Impact of Regulatory Information Disclosure on Information Security Investments, Competition, and Social Welfare
The Sarbanes-Oxley legislation is a mandate that is bringing new attention to IT security as a critical part of the risk management framework for the dual purposes of certifying internal controls and attesting to the accuracy of information. Regulatory compliance, security audits and mandatory information disclosure about internal weaknesses can be very costly from a budget standpoint because i...
متن کاملdomestic and international regulations and standards for risk disclosure in banks
Reporting by stakeholder groups, especially shareholders, has always been a demand And reporting and disclosure for the banking network is important. In Iran, banks require disclosing and reporting information and financial and economic events, but there are many international rules and standards for this disclosure. In addition, domestic regulations and requirements are also unclear due to the...
متن کامل