Lie-aversion and lying costs should be included in models because disclosing hidden information enriches basic theory. The agent in our principal-agent model has an exogenous lying cost. If it is high enough, she can be offered a first-best contract. If not, a modified contract outperforms the...

In Closer Look, we highlight significant “holes” in our knowledge of corporate governance. These are central issues where insufficient or inadequate study has left us unable to answer basic questions, and where key assumptions relied upon by experts have not been verified or validated. While...

We examine the relation between managerial incentives and disclosure. Specifically, we examine how contracts that explicitly evaluate managers relative to peer performance are associated with: (1) the transparency of mandatory disclosure; (2) the provision of voluntary disclosure; and (3) the...

PurposeThe main aim of this paper is to examine auditor choice and audit fees in family firms on the Tehran Stock Exchange.Design/methodology/approachThe hypotheses set are tested by analysing all firms except financial firms listed on the Tehran Stock Exchange for the period of 10 years, using...

Firms involved in the widespread practice of (delegated) innovation scouting face a crucial challenge: How to motivate innovation scouts to engage in extensive search for innovative projects given that search success oftentimes eludes them? Motivated by common scouting practice, we build a...

The increasing demand for aviation complex products makes complex product manufacturers pay more attention to delivery efficiency, and the efficiency and effect of delivery problems are the key factors that restrict the delivery efficiency. This study aims to design a long-term effective...

In recent years, blockchain technology has been increasingly applied to the luxury supply chain traceability. It enables companies and consumers to track the product information and carbon footprint in the whole chain, which alleviating consumers' distrust of luxury goods. In the e-commerce...

Corporate governance scholars have engaged in a longstanding debate over the impact of state antitakeover provisions. Corporate law practitioners and researchers argue that the affirmation of the ``poison pill'' made the second generation of antitakeover statutes redundant, while empirical...

This note compares the investment policy and managerial compensation in family and non-family firms. The model is based on one hand a manager/shareholders conflict that should be more pronounced in non-family firms. Secondly large shareholders/small shareholders conflict should play a...

Recent years have seen a reemergence of the practice of awarding “mega grants” to CEOs. Mega grants are large, one-time equity awards granted in lieu of or in addition to annual awards with the intended purpose of providing significant incentive to the CEO to achieve long-term targets. The...