We investigate how firms manage financial default risk (on debt) and operational default risk (on delivery obligations). Financially constrained firms reduce operational hedging through inventory and supply chain in favor of cash holdings. Our model predicts that firms' markup increases with...

Allen, Qian and Qian (2005, Journal of Financial Economics) explores the role of alternative financing channels (e.g., trade credits and private credit agencies) and governance mechanisms, such as those based on reputation and relationship, in explaining the growth of the private sector in...

The study aims at identifying the influence of interior pay gap between senior executives and ordinary employees on the organization's future performance for listed Chinese firms. In addition, two other moderator variables have been included in the study referring management power as the...

Purpose: The purpose of this empirical paper is to identify the role of social networking information (SNI) on job candidates' pre-employment background checking (PBC) process. SNI was further divided into three elements: perceived availability of information (PAI), perceived accuracy of...

The paper aims at identifying the role of social networking information on pre-employment background check practices with the help of existing literature. As the HR professionals are central in hiring process, they need to be aware of the practices and policies regarding this issue. Using social...

We analyze dynamic stationary models of capital structure, in partial and general equilibrium, when managers cannot commit to firm-value maximization. The model permits us to quantify both the private cost to firms of the commitment problem, and also the aggregate cost of its externality. Our...