“…8 However, according the later empirical analysis conducted by Chang (1985), the pro unbiased future pricings neither convincingly confirm nor deny the normal backwardation 1 Other extensions appear in Holthausen (1979) and Danthine (1980, 1981). 2 For example, Stulz (1984), Benninga et al (1985), Adam-Muller (1997), Adam-Muller and Wong (2003), Machnes (2005), Smith and Stulz (1985), Froot et al (1993), Nance et al (1993), DeMarzo and Duffie (1995), Mian (1996), Graham and Smith (1999), Graham and Rogers (2002), Tufano (1996), Battermann et al (2000), Bartram (2006), Bartram et al (2009) Adam et al (2007), Mackay and Moeller (2007) and Campello et al (2011). We rarely see a model that simultaneously integrates all the following: managers-owners distinction of risk aversion and incentives, equity-linked compensation as an incentive mechanism, i.e., Grossman and Hart (1983), the determination of output, and the conduction of risk management activities.…”