Goodhart, Charles (2021) The moral hazard of limited liability. VOX EU.
Full text not available from this repository.Abstract
A predominant example of moral hazard is the application of limited liability to the shareholders of publicly listed private-sector corporations. This column argues that changing the incentives for senior employees and majority shareholders for listed firms may be the most effective form of regulation. The author suggests that creating a system where managerial staff and other shareholders are incentivised to adhere to best practice to protect themselves, as well as the firm in question, is optimal.
| Item Type: | Article |
|---|---|
| Official URL: | https://voxeu.org/ |
| Additional Information: | © 2021 Centre for Economic Policy Research |
| Divisions: | LSE |
| Subjects: | H Social Sciences > HB Economic Theory H Social Sciences > HF Commerce B Philosophy. Psychology. Religion > BJ Ethics |
| Date Deposited: | 02 Aug 2021 10:39 |
| Last Modified: | 14 Sep 2024 03:09 |
| URI: | http://eprints.lse.ac.uk/id/eprint/111525 |
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