The resource-based view of the firm emphasizes the role of firm-specific resources, especially firm-specific knowledge resources, for enabling a firm to gain and sustain competitive advantage. However, since the deployment of firm-specific knowledge frequently requires key employees to make...

This paper identifies firm-level competitive activity, one of the key units of analysis in competitive dynamics research, as the fundamental mediation between corporate governance and firm-level financial performance. By employing the "Motivation-Capability" logic embodied in the competitive...

Regulators and governance activists are pressuring firms to abolish CEO duality (the Chief Executive Officer is also the Chairman of the Board). However, the literature provides mixed evidence on the relation between CEO duality and firm performance. Using the exogenous shock of the 1989...

Using newly available data, we examine the effects of the agency conflicts between ultimate controlling shareholders and minority shareholders in China's publicly listed firms between 2004 and 2009. We measure the severity of these agency problems by the excess control rights of the ultimate...

Using a newly-available World Bank survey of over 28,000 firms from 46 countries, we examine how financial development affects firm innovation around the world. We find that while stock market development significantly enhances firm innovation, banking sector development has mixed effects. We...

In this paper we investigate whether inefficient bank loans can reduce the value of borrowing firms when expropriation of the stock of minority shareholders by controlling shareholders is a major concern. Using data from Chinese banks, we find that bank loan announcements generate significantly...