Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 23, 2007 erstellt
Description:
We recognize a conflict that is largely neglected in the corporate finance literature. Shareholders want to maximize their portfolio value while capital budgeting rules direct managers to choose projects that maximize firm (equity) value. Managerial stock options can reduce this conflict between diversified shareholders and undiversified managers by reducing the incentives of managers to pursue projects that add little incremental value to the market portfolio