Joint research unit 7235

Principal vs. Principal: Reconciling regulatory compliance and shareholder value

Speaker :Bernard Sinclair-Desgagné (HEC Montréal)

This paper considers situations where an agent (say, a polluting firm’s CEO) must allocate his nonobservable effort across two distinct tasks (say, revenue/market share enhancement and regulatory compliance), and where two principals (say, the firm’s shareholders and a regulator) hold diverging viewpoints on what the best allocation should be. Both characteristics of this context – multi-tasking and conflicting principals – are normally seen as obstacles to strengthening the agent’s incentives. This paper proposes a simple arrangement, based on contingent monitoring and clawbacks, that can overcome these obstacles. Under this arrangement, the principals would end up coordinating their respective incentive schemes so that the agent considers revenue enhancement and environmental compliance as complementary utility-increasing activities. Potential applications to corporate governance, corporate social responsibility, and green innovation are briefly discussed.

AGENDA

Monday 28 November 2022

American bias in a local music streaming market: curation push vs. preference pull

Marianne Lumeau (CREM, Université de Rennes I)

ANNULE

American bias in a local music streaming market: curation push vs. preference pull

Monday 28 November 2022

Law, Institutions and Economics in Nanterre (LIEN)

Marianne Lumeau (CREM, Université de Rennes I)

ANNULE

American bias in a local music streaming market: curation push vs. preference pull

Tuesday 29 November 2022

Recherche et Economie et Socioéconomie Politique, des Institutions et des Régulations (RESPIR)

Adriano do Vale (Université de Poitiers) et Léo Malherbe (Université Université de Picardie Jules Verne)

Shedding light on a Blind Spot: New empirical evidence on the Accountability of the EuroSystem National Central Banks

Tuesday 29 November 2022

Shedding light on a Blind Spot: New empirical evidence on the Accountability of the EuroSystem National Central Banks

Adriano do Vale (Université de Poitiers) et Léo Malherbe (Université Université de Picardie Jules Verne)

Shedding light on a Blind Spot: New empirical evidence on the Accountability of the EuroSystem National Central Banks

Tuesday 29 November 2022

Optimal Fiscal Policy in a Climate-Economy Model with Heterogeneous Households

Thomas Douenne (Univ. Amsterdam), Albert Jan Hummel (Univ. Amsterdam), Marcelo Pedroni (Univ. Amsterdam)

Optimal Fiscal Policy in a Climate-Economy Model with Heterogeneous Households

Tuesday 29 November 2022

Series of Webinars on Economics of Environment, Energy and Transport (SWEEET)

Thomas Douenne (Univ. Amsterdam), Albert Jan Hummel (Univ. Amsterdam), Marcelo Pedroni (Univ. Amsterdam)

Optimal Fiscal Policy in a Climate-Economy Model with Heterogeneous Households

Thursday 1 December 2022

Doctorants

Nicolas de Roux

Capturing international influences in US monetary policy through a NLP approach

Thursday 1 December 2022

Capturing international influences in US monetary policy through a NLP approach

Nicolas de Roux

Capturing international influences in US monetary policy through a NLP approach

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