Decision Sciences
4 years ago

Managers Exploit Insider Info to Enrich Themselves at Shareholders' Expense

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SSRN Electronic Journal
Insider Information and Performance Pay
George-Levi Gayle, Robert A. Miller

Paper Summary

Managers use secret info to make more money, hurting shareholders. A model shows why bosses get paid to use this info. Studies prove this is a big deal economically. So, bosses and shareholders might agree to let bosses keep using their secret info.

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