The paper examines the association between corporate leverage and their investment in R&D. Towards this end, it develops certain testable propositions. These propositions are tested using a dataset of manufacturing firms in India covering the period 1995-2005. The estimates support the fact that...

The paper explores the factors influencing banking outreach. Using time series data on Indian states for 1973-2004, the analysis indicates a divergence across states in terms of the outreach of formal finance over time, ceteris paribus. The findings also uncover an important role of literacy and...

The compensation of executive board members in Germany has become a highly controversial topic since Vodafone's hostile takeover of Mannesmann in 2000 and it is again in the spotlight since the outbreak of the financial crisis of 2009. Based on unique panel data evidence of the 500 largest firms...

What insights can be gained from bringing the theory of the firm to the global economy? I discuss several new features of the world economy that can be explained by incorporating the theory of the firm into the theory of international trade. Among the new features I discuss are the move to...

Recent literature on international trade has established that the most productive firms become multinationals. But our data reveal a startling variation in productivity levels of foreign affliates across the countries in Eastern Europe of the same European multinational parent firms suggesting...

The paper makes a systematic attempt to ascertain the nexus between finance and growth at the sub-national level for an emerging economy. Using data on major states in India for 1973 to 2004, the analysis indicates significant regional divergences in financial outreach across states, as also in...

Using data on Indian banks during 1996-2007, the paper examines the impact of bank activity and short-term funding for bank returns and risks. The findings indicate that larger, fast growing financial firms tend to have higher fee income shares. In addition, banks with greater reliance on fee...

The analysis employs data on federal Government-owned public enterprises (PSEs) since the 1980s that encompasses the partial privatization program to examine the likelihood of privatization. The results indicate that employment-intensive, high-paying but less profitable firms are more likely to...

Using data on a large sample of public companies in India for 1987-2005, the findings indicate that increases in firm size are likely to be associated with increase in R&D up to a threshold. The evidence is also supportive of the fact that both the intensity of R&D as well as innovation activity...