Economics, Econometrics and Finance
8 years ago

Unlocking Finance: Incomplete Contracts Revolutionize Control and Renegotiation

Oxford University Press eBooks
Why the Incomplete Contract Approach Is Important for Finance
Luigi Zingales

Paper Summary

The article explains why incomplete contracts are important in finance. It shows how incomplete contracts help us understand how companies work, how control is divided in financial agreements, why renegotiation is crucial, and how this applies to big companies that are publicly traded.

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