In this paper, we consider a supply contracting problem in which the buyer firm faces non-stationary stochastic price and demand. First, we derive analytical results to compare two pure strategies: (i) periodically purchasing from the spot market; and (ii) signing a long-term contract with a...

Advertising plays an important role in affecting consumer demand. Socially responsible firms are expected to use advertising judiciously, limiting advertising of “bad” products. An example is the advertising initiative adopted by several major food manufacturers to limit the advertising of...

Firms employing offshore outsourcing strategies may face both exchange rate and demand uncertainties. In this paper, we show that the firms may benefit from operational option to switch production by keeping capacities with both domestic and foreign suppliers. The value of the operational option...

Corporate scandals such as those at Tyco, Enron, and WorldCom have caused the decline of public trust in accounting and reporting practices. In response, US passed the Sarbanes Oxley Law (Sarbanes) in 2002, the most important corporate governance law since securities laws in 1930s. Section 302...

This study describes a practical use of Data Envelopment Analysis-Discriminant Analysis (DEA-DA) for bankruptcy-based performance assessment. DEA-DA is useful for classifying non-default and default firms based upon their financial performance. However, when we apply DEA-DA to a data set on...