Robust dynamic contracts with multiple agents
Author:Yingjie Niu, Zhentao ZouAbstract: We develop a continuous-time dynamic multi-agent contracting model in which the principal is unsure about the distributions of the project's terminal payoffs and worries about model misspecification. With model uncertainty, workers' wages depend on the outputs of other unrelated projects and the optimal contracts exhibit overdetermination. We demonstrate an ...
The Pitfalls of Review Solicitation: Evidence from a Natural Experiment on TripAdvisor
Author:Baojun Gao; Jing Wang; Xiaojie Ding; ,Yue Guo Abstract: This study examines the effect of firms’ participation in platform-endorsed review solicitation programs on consumers’ online review generation. We leverage a natural experiment on TripAdvisor, which launched a review solicitation program that allows hotels to collect reviews directly from guests after their stays with the aid of certified ...
Director Liability Protection and the Quality of Independent Directors
Author:Ronald W. Masulis, Sichen Shen, Hong ZouAbstract: We study whether legal liability protection helps companies to recruit and retain high-quality independent directors. We conduct difference-in-differences analyses exploiting the 1999 Ninth Circuit Court of Appeals Ruling on the Silicon Graphics case, which substantially raised the bar for filing securities class action (SCA) lawsuits as a shock....