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Keywords: relational contracts
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Journal Articles
The Accounting Review (2020) 95 (6): 181–212.
Published: 01 November 2020
... ; Baiman and Rajan 1995 ; Rajan and Reichelstein 2006 , 2009 ; Ederhof 2010 ). A bonus pool can be seen as a special case of a relational contract. While explicit contracts are enforced by the courts, a relational (implicit) contract must be self-enforcing. In a multi-period setting, relational...