In recent decades, research organizations have brought the "market inside the firm" by allowing workers to sort themselves into teams. How do teams form absent a central authority? We introduce a model of team formation in which workers first match and then produce correlated signals about an...

This paper investigates performance measurement in a team production task that involves synergies. Specifically, I ask whether contracting on team performance, rather than on individual performance, is more valuable if a team’s members are better collaborators. The results of this analytical...

We study optimal team design (homogenous vs. diverse assignment) and explicit contracting in a setting with multiple agents who have possibly diverse demographic characteristics captured by their discount factors. When the agents have relatively small discount factors, the contract is designed...

This study examines the nexus between rookie independent directors and corporate dividend payouts among Chinese A-share firms between 2006 and 2020. The empirical results imply that rookie independent directors lead to enhanced corporate dividend payouts. This positive association is less...

Considering the leadership role of top management team (TMT) in the implementation of corporate digital strategy, we use a sample of Chinese A-share listed companies from 2012 to 2020 to test the impact of TMT stability on corporate digital innovation. We find that as TMT stability improves, the...

Institutional portfolios struggled in 2022 as hawkish central banks raised rates, leading to declines in equity, fixed income and REITs. Even illiquid assets like private equity/venture capital, and private credit have struggled. A new opportunity has arisen for institutional investors as the...

Audit quality and efficiency can be improved with the integration of innovative technology solutions. However, the successful implementation of such solutions largely depends on junior auditors' technological expertise and their ability to share knowledge upward to their supervisors on the...

A group of agents each exert effort to produce a joint output, with the complementarities between their efforts represented by a (weighted) network. Under equity compensation, a principal motivates the agents to work by giving them shares of the output. We describe the optimal equity allocation....