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Keywords: Principal‐agent
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Journal Articles
External equity in agriculture: Risk sharing and incentives in a principal‐agent relationship
Available to Purchase
Journal:
Agricultural Finance Review
Agricultural Finance Review (2002) 62 (1): 13–24.
Published: 05 May 2002
...Zijun Wang; David J. Leatham; Thanapat Chaisantikulawat The moral hazard problem which obstructs external equity financing of farm businesses is studied using the principal‐agent framework. We assume that the supplier of external equity capital (the principal) cannot directly observe the farmer’s...
