Abstract
The empirical verification of the central predictions of the previously developed managerial insolvency timing decision model as well as the effects of interest alignment instruments requires the formulation of testable hypotheses. Four main causal hypotheses are put forward here that state the expected relation between different settings of interest alignment instruments and the resulting managerial insolvency timing decision. Each hypothesis also includes assumptions on how individual decision-makers' personal characteristics determine the insolvency timing decision. The formulation of hypotheses is based on the previously developed individual decision model and the discussion of the effectiveness of different interest alignment instruments.
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© 2014 Springer Fachmedien Wiesbaden
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Drescher, F. (2014). Experimental Testing of Interest Alignment Instruments. In: Insolvency Timing and Managerial Decision-Making. Springer Gabler, Wiesbaden. https://doi.org/10.1007/978-3-658-02819-0_6
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DOI: https://doi.org/10.1007/978-3-658-02819-0_6
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Publisher Name: Springer Gabler, Wiesbaden
Print ISBN: 978-3-658-02818-3
Online ISBN: 978-3-658-02819-0
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