Suppliers often make proactive investments in capacity to strategically position themselves to win a contract with a monopolist buyer. Such investments reduce the suppliers' variable costs of serving the buyer's demand. We show that an auction mechanism does not always benefit the...

Increased diversification of commodity exports, and increased numbers of high-value commodity exports, are needed to generate employment and meet the Government of Rwanda's targets for poverty reduction. This chapter presents evidence that increased diversification of exports is linked to...

This paper investigates the impact of the ownership by institutional investors who are geographically close (local) and have long-term investment horizons (long-term) on corporate social responsibility (CSR) activities. Using a panel data of S&P 500 firms over the period between 1995 and 2009,...

We provide new evidence that highlights the effect of geographic proximity on the role institutional investors play by showing that, while bank trusts are passive with distant firms, they are non-passive with local firms and reduce their risk-taking. We find that concentrated local bank trust...

A typical hedge fund manager receives greater compensation when the fund has a strong absolute or relative performance. Asymmetric performance fees and fund flow-performance relationship may create incentives for risk-shifting, estimated in our study by the change in fund return volatility in...

The geometric structures, energetic and electronic properties of global minima of the AlBe n ( n = 1–12) clusters have been systemically studied by using the hybrid density functional theory [B3LYP] and coupled cluster [CCSD(T)] methods. It is found that the impurity Al atom is externally...

This paper examines how executives' compensation structure interacts with firm debt structure. Agency theory suggests that executive compensation can be used to mitigate the conflicts of interests between executives and shareholders. Based on the compensation contracts, executives make...

The preparation of cash-flow statement under the indirect method involves adjustments of many items. This is a highly complex process prone to errors, due to a lack of philosophical guidance. This paper finds that the concept of natural equilibrium of Chinese Taoism “...is the way of heaven to...