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Asset Ownership and Investment Incentives Revisited

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  • de Mesa, D.
  • Lockwood, B.

Abstract

Previous work on the property rights theory of the firm suggests that in the presence of outside options, asset ownership may demotivate managers. This paper shows that this conclusion relies on the assumption that a manager's outside option only depends on her own investment.

Suggested Citation

  • de Mesa, D. & Lockwood, B., 2000. "Asset Ownership and Investment Incentives Revisited," The Warwick Economics Research Paper Series (TWERPS) 562, University of Warwick, Department of Economics.
    • Handle: RePEc:wrk:warwec:562
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    File URL: https://warwick.ac.uk/fac/soc/economics/research/workingpapers/2008/twerp562.pdf
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    References listed on IDEAS

    as
    1. Ken Binmore & Avner Shared & John Sutton, 1989. "An Outside Option Experiment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 104(4), pages 753-770.
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    More about this item

    Keywords

    PROPERTY RIGHTS ; MANAGEMENT ; INVESTMENTS;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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