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...

This article investigates whether the business relations between mutual funds and brokerage firms influence sell-side analyst recommendations. Using a unique data set that discloses brokerage firms' commission income derived from each mutual fund client as well as the share holdings of these...

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...

We propose and model that firms face two potential defaults: Financial default on their debt obligations and operational default such as a failure to deliver on obligations to customers. Hence, firms with limitations on outside financing substitute between saving cash for financial hedging to...

In order to regulate work in process (WIP) to the desired value in the job shop production control system, capacity adjustment as an effective and efficient measure, which is typically achieved by flexible staffs and working time. In this paper, instead of traditional labour-oriented approaches,...