Models of horizontal integration typically describe a trade-off between multiunit efficiencies and managerial agency costs. In extreme cases where managers cannot be incented contractually, private ownership is thought to be the primary organizational substitute. In this paper we explore...

Summary In an economy characterized by financial repression, enhancing the legal system may hinder the development of some aspects of the financial sector, especially informal arrangements aiming at circumventing the repression. Using Chinese provincial data in the 1990s, we find that enhanced...

What are the individual rewards to working in teams? This question extends across many production settings but is of long-standing interest in science and innovation, where the "Matthew Effect" suggests that eminent team members garner credit for great works at the expense of less eminent team...

During the late 1990s, China introduced the gaizhi process for privatizing state-owned firms. Under gaizhi, insiders could acquire their firms at a price that was based on recent profitability. This gave the managers of firms an incentive to reduce short run profits. We compared the performance...

In this paper, we study the effects of tax-exempt debt on the supply of charity care of non-profit hospitals. We hypothesize that hospitals using tax-exempt rather than taxable debt are forced to provide higher levels of charity care as a condition for gaining access to the tax-exempt market....

Parties needing to monitor the financial performance of not-for-profit (NFP) organizations have traditionally relied upon financial ratios of accounting data. This practice can lead to misleading inferences about profitability in relation to organizational needs, since accounting rates of return...