{"id":"https://openalex.org/W2000878854","doi":"https://doi.org/10.1111/j.1540-6261.1993.tb05140.x","title":"Moral Hazard and the Portfolio Management Problem","display_name":"Moral Hazard and the Portfolio Management Problem","publication_year":1993,"publication_date":"1993-12-01","ids":{"openalex":"https://openalex.org/W2000878854","doi":"https://doi.org/10.1111/j.1540-6261.1993.tb05140.x","mag":"2000878854"},"language":"en","primary_location":{"id":"doi:10.1111/j.1540-6261.1993.tb05140.x","doi":"https://doi.org/10.1111/j.1540-6261.1993.tb05140.x","is_oa":false,"landing_page_url":"https://doi.org/10.1111/j.1540-6261.1993.tb05140.x","pdf_url":null,"source":{"id":"https://openalex.org/S5353659","display_name":"The Journal of Finance","issn_l":"0022-1082","issn":["0022-1082","1540-6261"],"is_oa":false,"is_in_doaj":false,"is_core":true,"listed_in":["abdc-a-star","anvur-class-a","anvur-scientific","cwts-core","erih-plus","fnege-1-star","ft50","jufo-3","norway-2","poland-200","russia-white-list-1","utd24","vabb-shw"],"host_organization":"https://openalex.org/P4310320595","host_organization_name":"Wiley","host_organization_lineage":["https://openalex.org/P4310320595"],"host_organization_lineage_names":["Wiley"],"type":"journal"},"license":null,"license_id":null,"version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"The Journal of Finance","raw_type":"journal-article"},"volume":null,"type":"article","indexed_in":["crossref"],"open_access":{"is_oa":false,"oa_status":"closed","oa_url":null,"any_repository_has_fulltext":false},"authorships":[{"author_position":"first","author":{"id":"https://openalex.org/A5050050488","display_name":"Neal M. Stoughton","orcid":null,"observed_orcids":[]},"institutions":[{"id":"https://openalex.org/I161318765","display_name":"University of California, Los Angeles","ror":"https://ror.org/046rm7j60","country_code":"US","type":"education","lineage":["https://openalex.org/I161318765"]},{"id":"https://openalex.org/I204250578","display_name":"University of California, Irvine","ror":"https://ror.org/04gyf1771","country_code":"US","type":"education","lineage":["https://openalex.org/I204250578"]}],"countries":["US"],"is_corresponding":true,"raw_author_name":"NEAL M. STOUGHTON","raw_affiliation_strings":["University of California, Irvine. This paper was presented to seminar audiences at UCLA, U.C. Riverside, and the Western Finance Association. I would like to acknowledge helpful comments by Jeff Coles, an anonymous referee, and especially Masako Darrough. This research was partially supported by a U.C. Irvine faculty fellowship"],"raw_orcid":null,"affiliations":[{"raw_affiliation_string":"University of California, Irvine. This paper was presented to seminar audiences at UCLA, U.C. Riverside, and the Western Finance Association. I would like to acknowledge helpful comments by Jeff Coles, an anonymous referee, and especially Masako Darrough. This research was partially supported by a U.C. Irvine faculty fellowship","institution_ids":["https://openalex.org/I161318765","https://openalex.org/I204250578"]}]}],"institutions":[],"countries_distinct_count":1,"institutions_distinct_count":2,"corresponding_author_ids":["https://openalex.org/A5050050488"],"corresponding_institution_ids":["https://openalex.org/I161318765","https://openalex.org/I204250578"],"apc_list":{"value":4430,"currency":"USD","value_usd":4430},"apc_paid":null,"fwci":6.8313,"has_fulltext":false,"cited_by_count":216,"citation_normalized_percentile":{"value":0.95728045,"is_in_top_1_percent":false,"is_in_top_10_percent":true},"cited_by_percentile_year":{"min":95,"max":99},"biblio":{"volume":"48","issue":"5","first_page":"2009","last_page":"2009"},"is_retracted":false,"is_paratext":false,"is_xpac":false,"primary_topic":{"id":"https://openalex.org/T10019","display_name":"Corporate Finance and Governance","score":0.22529999911785126,"subfield":{"id":"https://openalex.org/subfields/1402","display_name":"Accounting"},"field":{"id":"https://openalex.org/fields/14","display_name":"Business, Management and Accounting"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},"topics":[{"id":"https://openalex.org/T10019","display_name":"Corporate Finance and Governance","score":0.22529999911785126,"subfield":{"id":"https://openalex.org/subfields/1402","display_name":"Accounting"},"field":{"id":"https://openalex.org/fields/14","display_name":"Business, Management and Accounting"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T10047","display_name":"Financial Markets and Investment Strategies","score":0.2087000012397766,"subfield":{"id":"https://openalex.org/subfields/2003","display_name":"Finance"},"field":{"id":"https://openalex.org/fields/20","display_name":"Economics, Econometrics and Finance"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T11182","display_name":"Auction Theory and Applications","score":0.17550000548362732,"subfield":{"id":"https://openalex.org/subfields/1803","display_name":"Management Science and Operations Research"},"field":{"id":"https://openalex.org/fields/18","display_name":"Decision Sciences"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}}],"keywords":[{"id":"https://openalex.org/keywords/moral-hazard","display_name":"moral hazard","score":0.9890000224113464},{"id":"https://openalex.org/keywords/portfolio-management","display_name":"portfolio management","score":0.9559999704360962},{"id":"https://openalex.org/keywords/information-acquisition","display_name":"information acquisition","score":0.5139999985694885},{"id":"https://openalex.org/keywords/underinvestment","display_name":"underinvestment","score":0.7120000123977661},{"id":"https://openalex.org/keywords/principal-agent-problem","display_name":"principal-agent problem","score":0.5419999957084656},{"id":"https://openalex.org/keywords/linear-contracts","display_name":"linear contracts","score":0.5989999771118164}],"concepts":[{"id":"https://openalex.org/C2780695315","wikidata":"https://www.wikidata.org/wiki/Q3799040","display_name":"Unobservable","level":2,"score":0.955284595489502},{"id":"https://openalex.org/C2780202544","wikidata":"https://www.wikidata.org/wiki/Q44454","display_name":"Moral hazard","level":3,"score":0.8596475124359131},{"id":"https://openalex.org/C2780821815","wikidata":"https://www.wikidata.org/wiki/Q5340806","display_name":"Portfolio","level":2,"score":0.7027007937431335},{"id":"https://openalex.org/C29122968","wikidata":"https://www.wikidata.org/wiki/Q1414816","display_name":"Incentive","level":2,"score":0.6588187217712402},{"id":"https://openalex.org/C2777212361","wikidata":"https://www.wikidata.org/wiki/Q5127848","display_name":"Class (philosophy)","level":2,"score":0.5797477960586548},{"id":"https://openalex.org/C175444787","wikidata":"https://www.wikidata.org/wiki/Q39072","display_name":"Microeconomics","level":1,"score":0.5049224495887756},{"id":"https://openalex.org/C129844170","wikidata":"https://www.wikidata.org/wiki/Q41299","display_name":"Quadratic equation","level":2,"score":0.49904394149780273},{"id":"https://openalex.org/C162118730","wikidata":"https://www.wikidata.org/wiki/Q1128453","display_name":"Actuarial science","level":1,"score":0.4879967272281647},{"id":"https://openalex.org/C74510933","wikidata":"https://www.wikidata.org/wiki/Q1936145","display_name":"Project portfolio management","level":3,"score":0.47875136137008667},{"id":"https://openalex.org/C79301358","wikidata":"https://www.wikidata.org/wiki/Q1918846","display_name":"Contract theory","level":2,"score":0.4440802037715912},{"id":"https://openalex.org/C137577040","wikidata":"https://www.wikidata.org/wiki/Q431965","display_name":"Information asymmetry","level":2,"score":0.4333820939064026},{"id":"https://openalex.org/C32848918","wikidata":"https://www.wikidata.org/wiki/Q845789","display_name":"Observable","level":2,"score":0.42955440282821655},{"id":"https://openalex.org/C144133560","wikidata":"https://www.wikidata.org/wiki/Q4830453","display_name":"Business","level":0,"score":0.4257047772407532},{"id":"https://openalex.org/C162324750","wikidata":"https://www.wikidata.org/wiki/Q8134","display_name":"Economics","level":0,"score":0.4111028015613556},{"id":"https://openalex.org/C41008148","wikidata":"https://www.wikidata.org/wiki/Q21198","display_name":"Computer science","level":0,"score":0.3383706212043762},{"id":"https://openalex.org/C126255220","wikidata":"https://www.wikidata.org/wiki/Q141495","display_name":"Mathematical optimization","level":1,"score":0.32684189081192017},{"id":"https://openalex.org/C149782125","wikidata":"https://www.wikidata.org/wiki/Q160039","display_name":"Econometrics","level":1,"score":0.29746896028518677},{"id":"https://openalex.org/C33923547","wikidata":"https://www.wikidata.org/wiki/Q395","display_name":"Mathematics","level":0,"score":0.2227032482624054},{"id":"https://openalex.org/C10138342","wikidata":"https://www.wikidata.org/wiki/Q43015","display_name":"Finance","level":1,"score":0.18988803029060364},{"id":"https://openalex.org/C15952604","wikidata":"https://www.wikidata.org/wiki/Q179012","display_name":"Project management","level":2,"score":0.12810441851615906},{"id":"https://openalex.org/C187736073","wikidata":"https://www.wikidata.org/wiki/Q2920921","display_name":"Management","level":1,"score":0.07921412587165833},{"id":"https://openalex.org/C62520636","wikidata":"https://www.wikidata.org/wiki/Q944","display_name":"Quantum mechanics","level":1,"score":0.0},{"id":"https://openalex.org/C121332964","wikidata":"https://www.wikidata.org/wiki/Q413","display_name":"Physics","level":0,"score":0.0},{"id":"https://openalex.org/C154945302","wikidata":"https://www.wikidata.org/wiki/Q11660","display_name":"Artificial intelligence","level":1,"score":0.0},{"id":"https://openalex.org/C2524010","wikidata":"https://www.wikidata.org/wiki/Q8087","display_name":"Geometry","level":1,"score":0.0}],"mesh":[],"locations_count":4,"locations":[{"id":"doi:10.1111/j.1540-6261.1993.tb05140.x","doi":"https://doi.org/10.1111/j.1540-6261.1993.tb05140.x","is_oa":false,"landing_page_url":"https://doi.org/10.1111/j.1540-6261.1993.tb05140.x","pdf_url":null,"source":{"id":"https://openalex.org/S5353659","display_name":"The Journal of Finance","issn_l":"0022-1082","issn":["0022-1082","1540-6261"],"is_oa":false,"is_in_doaj":false,"is_core":true,"listed_in":["abdc-a-star","anvur-class-a","anvur-scientific","cwts-core","erih-plus","fnege-1-star","ft50","jufo-3","norway-2","poland-200","russia-white-list-1","utd24","vabb-shw"],"host_organization":"https://openalex.org/P4310320595","host_organization_name":"Wiley","host_organization_lineage":["https://openalex.org/P4310320595"],"host_organization_lineage_names":["Wiley"],"type":"journal"},"license":null,"license_id":null,"version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"The Journal of Finance","raw_type":"journal-article"},{"id":"doi:10.2307/2329079","doi":"https://doi.org/10.2307/2329079","is_oa":false,"landing_page_url":"https://doi.org/10.2307/2329079","pdf_url":null,"source":{"id":"https://openalex.org/S5353659","display_name":"The Journal of Finance","issn_l":"0022-1082","issn":["0022-1082","1540-6261"],"is_oa":false,"is_in_doaj":false,"is_core":true,"listed_in":["abdc-a-star","anvur-class-a","anvur-scientific","cwts-core","erih-plus","fnege-1-star","ft50","jufo-3","norway-2","poland-200","russia-white-list-1","utd24","vabb-shw"],"host_organization":"https://openalex.org/P4310320595","host_organization_name":"Wiley","host_organization_lineage":["https://openalex.org/P4310320595"],"host_organization_lineage_names":["Wiley"],"type":"journal"},"license":null,"license_id":null,"version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"The Journal of Finance","raw_type":"journal-article"},{"id":"pmh:oai:RePEc:bla:jfinan:v:48:y:1993:i:5:p:2009-28","doi":null,"is_oa":false,"landing_page_url":"http://links.jstor.org/sici?sici=0022-1082%28199312%2948%3A5%3C2009%3AMHATPM%3E2.0.CO%3B2-8&origin=repec","pdf_url":null,"source":{"id":"https://openalex.org/S4306401271","display_name":"RePEc: Research Papers in Economics","issn_l":null,"issn":null,"is_oa":false,"is_in_doaj":false,"is_core":false,"listed_in":[],"host_organization":"https://openalex.org/I77793887","host_organization_name":"Federal Reserve Bank of St. Louis","host_organization_lineage":["https://openalex.org/I77793887"],"host_organization_lineage_names":[],"type":"repository"},"license":null,"license_id":null,"version":"submittedVersion","is_accepted":false,"is_published":false,"raw_source_name":null,"raw_type":"article"},{"id":"pmh:oai:research.wu.ac.at:openaire_cris_publications/5d33dc99-5225-4105-adb6-8eb8a2db2f85","doi":null,"is_oa":false,"landing_page_url":"https://research.wu.ac.at/de/publications/5d33dc99-5225-4105-adb6-8eb8a2db2f85","pdf_url":null,"source":{"id":"https://openalex.org/S7407055123","display_name":"WU Research","issn_l":null,"issn":null,"is_oa":false,"is_in_doaj":false,"is_core":false,"listed_in":[],"host_organization":null,"host_organization_name":null,"host_organization_lineage":[],"host_organization_lineage_names":[],"type":"repository"},"license":null,"license_id":null,"version":"submittedVersion","is_accepted":false,"is_published":false,"raw_source_name":"Stoughton, N 1993, 'Moral Hazard and the Portfolio Management Problem', Journal of Finance, vol. 48, pp. 2009 - 2028.","raw_type":"info:eu-repo/semantics/article"}],"best_oa_location":null,"sustainable_development_goals":[],"sustainable_development_goals_aurora":[],"study_designs":[],"awards":[],"funders":[],"has_content":{"pdf":false,"grobid_xml":false},"content_urls":null,"referenced_works_count":10,"referenced_works":["https://openalex.org/W1527412032","https://openalex.org/W1966927913","https://openalex.org/W1968791788","https://openalex.org/W1973563023","https://openalex.org/W1981315212","https://openalex.org/W1986355507","https://openalex.org/W2006553348","https://openalex.org/W2134851170","https://openalex.org/W3123920997","https://openalex.org/W4230004673"],"related_works":["https://openalex.org/W2024861287","https://openalex.org/W2353938328","https://openalex.org/W2188259650","https://openalex.org/W2362050118","https://openalex.org/W1601746912","https://openalex.org/W2357969874","https://openalex.org/W3121882609","https://openalex.org/W3123216029","https://openalex.org/W2151383463","https://openalex.org/W7096279412"],"abstract_inverted_index":{"ABSTRACT":[0],"This":[1,73],"paper":[2],"investigates":[3],"the":[4,10,20,48,52,59,71,81],"significance":[5],"of":[6,67,83],"nonlinear":[7],"contracts":[8,87],"on":[9],"incentive":[11],"for":[12,94],"portfolio":[13],"managers":[14],"to":[15,25,63,90],"collect":[16],"information.":[17],"In":[18],"addition,":[19],"manager":[21],"must":[22],"be":[23,77,91],"motivated":[24],"disclose":[26],"this":[27],"information":[28],"truthfully.":[29],"We":[30,56],"analyze":[31],"three":[32],"contracting":[33],"regimes:":[34],"(1)":[35],"first\u2010best":[36],"where":[37],"effort":[38,68],"is":[39],"observable,":[40],"(2)":[41],"linear":[42,60],"with":[43],"unobservable":[44],"effort,":[45],"and":[46],"(3)":[47],"optimal":[49,93],"contract":[50,61],"within":[51],"Bhattacharya\u2010Pfleiderer":[53],"quadratic":[54,84],"class.":[55],"find":[57],"that":[58],"leads":[62],"a":[64],"serious":[65],"lack":[66],"expenditure":[69],"by":[70],"manager.":[72],"underinvestment":[74],"problem":[75],"can":[76],"successfully":[78],"overcome":[79],"through":[80],"use":[82],"contracts.":[85],"These":[86],"are":[88],"shown":[89],"asymptotically":[92],"very":[95],"risk\u2010tolerant":[96],"principals.":[97]},"counts_by_year":[{"year":2026,"cited_by_count":4},{"year":2025,"cited_by_count":7},{"year":2024,"cited_by_count":8},{"year":2023,"cited_by_count":9},{"year":2022,"cited_by_count":3},{"year":2021,"cited_by_count":7},{"year":2020,"cited_by_count":5},{"year":2019,"cited_by_count":4},{"year":2018,"cited_by_count":7},{"year":2017,"cited_by_count":10},{"year":2016,"cited_by_count":9},{"year":2015,"cited_by_count":8},{"year":2014,"cited_by_count":8},{"year":2013,"cited_by_count":11},{"year":2012,"cited_by_count":11}],"updated_date":"2026-10-16T09:59:22.235173","created_date":"2016-06-24T00:00:00"}