Policies involving what are known as Free Economic Zones (FEZs) have been popular among countries interested in attracting foreign investment. While foreign investment has generally benefited the receiving country, the effect of market rivalry is known to reverse this impact. Our paper tests,...

Greater instability in a country's list of top corporations is associated with faster economic growth. This faster growth is primarily due to faster growth in total factor productivity in industrialized countries, and faster capital accumulation in developing countries. These findings are...

Family firms depend on a succession of capable heirs to stay afloat. If talent and IQ are inherited, this problem is mitigated. If, however, progeny talent and IQ display mean reversion (or worse), family firms are eventually doomed. This is the essence of the critique of family firms in...

Family firms depend on a succession of capable heirs to stay afloat. If talent and IQ are inherited, this problem is mitigated. If, however, progeny talent and IQ display mean reversion (or worse), family firms are eventually doomed. This is the essence of the critique of family firms in...

Equity ownership gives labor both a fractional stake in a firm's residual cash flows and a voice in corporate governance. Relative to other firms, labor-controlled publicly traded firms deviate more from value maximization, invest less in long-term assets, take fewer risks, grow more slowly,...

This paper reports a statistical study of the temporal causal relationships between expansion of a firm's multinational structure and the firm's growth in spending of R & D and advertising. We find that firms increase R & D expenditures after expanding their multinational structure, but not vice...