This book provides an integrated, technical exposition of key concepts in agency theory, with
particular emphasis on analyses of the economic consequences of the characteristics of …

… Peter Christensen had been a student in one of Jerry's classes in 1986. In 1997, Peter
asked Jerry if he was going to write a book based on his lecture notes. When Jerry stated it was …

We emphasize the role of accounting policies, and their audit, in an earnings management
setting. We use a two–period agency in which three frictions interact: the agent privately …

We consider a dynamic trade-off model of a firm's capital structure with debt renegotiation.
Debt holders only accept restructuring offers from equity holders backed by threats which are …

Duration and convexity, which quantify the sensitivity of bond prices to changes in discount
rates, are important tools for controlling price risk caused by shifts in interest rates. An …

In a finite time horizon, incomplete market, continuous-time setting with dividends and investor
incomes governed by arithmetic Brownian motions, we derive closed-form solutions for …

This paper examines a two‐consumption date principal/agent model in which the manager
receives private information at the first date. After observing his private information, the …

Under the assumptions of the Consumption-based Capital Asset Pricing Model (CCAPM),
Pareto optimal consumption allocations are characterized by each agent's consumption …

This paper examines a principal-agent model in which the agent receives a sequence of
two signals about the future outcome from his actions. Conditions are identified under which …

Under the assumptions of the Consumption-based Capital Asset Pricing Model (CCAPM),
Pareto optimal consumption allocations are characterized by each agent’s consumption …