additional payment. We show that it is easier for division managers to prove top management’s manipulations when the performance … of their own divisions is low. Earnings manipulation therefore undermines division managers’ incentives to exert effort …

additional payment. We show that it is easier for division managers to prove top management’s manipulations when the performance … of their own divisions is low. Earnings manipulation therefore undermines division managers’ incentives to exert effort …

frictions using a canonical investment model. We consider two channels by which frictions affect investment: (i) through … frictions, institutions affect investment. We find that improved corporate governance (e.g., less severe informational problems …) and enhanced contractual enforcement reduce financial frictions affecting investment, while stronger creditor rights (e …

should err in favour of the arrangement that is less favourable to managers. Such an approach, we show, would make it most …

results indicate that the transfer of knowledge to emerging markets occurs not only through foreign investment, but also …