Yaniv Grinstein Awarded Best Paper Prize
Yaniv Grinstein, assistant professor of finance, was awarded the Best Paper Prize for the most significant paper published in the Journal of Financial Intermediation in 2006 for his paper, "The Disciplinary Role of Debt and Equity Contracts: Theory and Tests." The article examines how debt and equity should be designed to align managerial incentives. Both debt and equity have features that create incentives for management to work hard. Debt holders' right to seize assets if they do not get their money back, and equity holders' right to replace the manager if they do not get a reasonable return, create very powerful incentives.
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