The present study has as main objective to reflect the state of literature regarding free cash flow, and to withdraw the main pro's and con's in order to create an objective image upon this indicator. The main idea generating this research was the growing interest on cash flow reporting. As many...

The agency theory approach to understanding salesforce compensation plans is modified to incorporate the intratemporal nature of the salesperson's effort-rate decision, i.e., the decision about the effort-rate at any given point in time potentially depends upon the sales performance up to that...

This paper examines the relationship between product architecture, supply-chain performance metrics, and supply-chain efficiency. We model the contracting relationship between a supplier and a buyer. The supplier is privately informed about the outcome of his design/production investment. The...

The procurement of product development and production services brings special strategic considerations to the buyer-seller relationship in industrial and institutional markets. Multiple sourcing, in particular dual sourcing, is a likely way of dealing with the increased risks faced by buyers....

This paper proposes and tests a new model of organizational bankruptcy based on agency and prospect theory. The paper argues that debtors with unprestigious top managers, low liquidity and high leverage signal that they will be undependable exchange partners. The model proposes that survival is...

Recently, a stream of theoretical development concerning the design of optimal compensation plans has emerged in the marketing literature. Little empirical work has been done so far to validate the theoretical predictions. The findings from the few field studies are equivocal and conflicting...

This research note reports results of a laboratory experiment conducted as a follow-up investigation of an earlier study by Umanath, Ray and Campbell (Umanath, N. S., M. R. Ray, T. L. Campbell. 1993. The impact of perceived environmental uncertainty and perceived agent effectiveness on the...

The Virtual Design Team (VDT) extends and operationalizes Galbraith's (1973) information-processing view of organizations. VDT simulates the micro-level information processing, communication, and coordination behavior of participants in a project organization and predicts several measures of...

This paper presents a principal-agent model in which subsequent to contracting the risk averse agent becomes informed about the production process. Communication of the agent's information is always valuable. The optimal contract given this information asymmetry is characterized by less...

The comparative efficiency and success of small firms in R&D remains largely unexplained. This paper empirically examines scale diseconomies in offering employment contracts as an explanation for diseconomies of scale in R&D. The paper argues that small firms more efficiently resolve the severe...