We investigate the determinants of cross-border venture capital (VC) performance using a large sample of 10,205 cross-border VC investments by 1,906 foreign VC firms (VCs) in 6,535 domestic portfolio companies. We focus on the impact of a domestic country's economic freedom on the performance of...

This paper investigates the determinants of cross-border venture capital (VC) performance in the Chinese VC market. We focus on the impact of foreign VC firms' (VCs') human capital and domestic entrepreneurs' experience on the performance of both VC investments and portfolio companies using...

This paper investigates spatial competition and spatial interdependence in two key strategic variables in franchising: the proportion of franchised outlets (franchise proportion) and the royalty rate. Employing a simultaneous equations model and data from 353 U.S. franchise chains in 43 sectors...

The authority to make decisions is often bundled with accountability. Decision makers are often made accountable for failures. We propose an incomplete-contract approach to investigate four systems of accountability: no accountability, personal accountability, collective accountability, and...

This paper provides a unique contractual analysis of privatization from a state-owned company to a privately-owned company. Using a contractual approach, we analyze the advantages and disadvantages of private ownership versus state ownership under various circumstances. Our analyses focus on...

The most recent Chinese reform is in the form of staged privatization with multi-stage lockups and step-by-step unlocking and sales of shares. This paper presents a theory and provides empirical evidence for staged privatization under market forces. Our theory is based on a specification of a...

This paper defines a well-behaved fuzzy order and finds a simple functional representation for the fuzzy preferences. It includes the existing utility theory for exact preferences (no fuzziness) as a special case. It is a simple and intuitive extension of the utility theory under uncertainty,...

As an extension of Wang & Zhu (2005), this short paper shows that the popular 51:49 equity structure can be optimal. This equity structure in joint ventures (JVs) has puzzled economists the world over. We find that, when the two parties are highly asymmetric in their abilities to acquire private...

The allocation of control rights is a key issue in incomplete contracts. In this paper, we add an exit option, the right of early termination, to the standard agency model for employment contracts. We address two questions: (1) Who should have this right? (2) What is the effect of its inclusion...

This paper proposes a unique model of capacity utilization in which the firm varies capacity utilization by a variable number of shifts when facing demand fluctuations. In the long run, the firm optimally chooses a capacity level based on expected demand conditions. In the short run, when facing...