This paper studies a three-layer supply chain where a manufacturer sells product through a reseller who then relies on its own salesperson to sell to the end market. The reseller has superior capability in demand forecasting relative to the manufacturer. We explore the main tradeoffs between the...

We study an extension of a two-period inventory management problem with positively correlated demands in which the manager's compensation is partially based on an external, market-based assessment of the firm's value. As typically the "real'' demand is only observed internally in the firm, the...

We propose a framework that advances our understanding of CEO retention decisions in misreporting firms. Consistent with economic intuition, outside directors are more likely to fire (retain) CEOs when retention (replacement) costs are high relative to replacement (retention) costs. When the...