040586 DK PhD-M: Agency-Theory (2007S)

The seminar deals with the theoretical foundations of financial corporate objectives based on capital market theory, incentive compatible decision and investment criteria as well as the design of incentive and monitoring mechanisms so that management will pursue the corporate objectives. Of particular interest is the use of accounting earnings as a performance measure in a multi-period setting and with asymmetric information, where the manager has to be provided with incentives to reveal his private information about a project's profitability.