We model the effects of product market competition on managerial efficiency, and isolate the agency effect of competition, which is present only in firms subject to agency costs, from the direct pressure effect, which is present in all firms. Using a unique set of Canadian data which allows us...

This paper is about financial contracting choices for the entrepreneur. In an incomplete contracts model, the entrepreneur can design contracts contingent on three possible control right allocations: entrepreneur-control, investor-control, and joint control, with each allocation inducing...