The existing debate about policies designed to foster the development of a stakeholder economy has largely avoided a fundamental question. How large is the financial stake employees currently hold in their companies? This paper addresses this question using data from the Datastream database, and...

We examine the hypothesis that white knights enter control contests to spend free cash flow instead of paying it out to shareholders. Tobin's q is used to measure management's inclination to invest in negative NPV investments. We find that historically, white knights have over-invested and their...

This paper considers the optimal futures hedging decision under uncertain tax treatment. If the Corn Products (CP) rule applies, gains or losses from futures trading can offset business gains or losses. However, under the Arkansas Best (AB) doctrine, offsetting is not allowed. We show that the...

In a managerial world in which opportunism abounds, the detection of opportunists is an important prerequisite of survival. Recent developments in evolutionary psychology claim to shed light on the cheater detection process: specifically arguing that there is a specialized module in the mind...

This paper examines the effect of increased product substitutability on quantity-setting firms' ability to sustain tacit collusion in a market. It uses a general demand function and the trigger strategy of Friedman (Friedman JW. 1971. A non-cooperative equilibrium for supergames. Review of...

This paper uses the techniques of knowledge discovery in databases (KDD) and data visualization as a methodology to uncover significant clusters in the ownership of risky financial assets. Partitioning by medoids and data visualization identifies two significant clusters among risky asset...

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This study presents a signaling model of fixed-price repurchase offers which shows that the proportion repurchased and the premium paid in excess of the stock's full-information value signal both earnings and risk. The model yields four novel implications: high risk firms repurchase smaller...

Research in economics and finance documents a puzzling negative relationship between stock returns and inflation rate in markets of industrialized economies. The present study investigates this relationship for the developing markets of Peru and Chile. Fama's model of linkages between inflation...

This paper is an application of Darwinian analysis to the study of humans as inputs to the production process. Biologists believe that the only factor capable of explaining the extraordinary level of human intelligence is selection pressure from competition with other proto-humans. This...