We find that investor sentiment should affect a firm's employment policy in a world with moral hazard and noise traders …. Consistent with the model's predictions, we show that higher sentiment among US investors leads to: (1) higher employment growth … worldwide; (2) lower labor productivity, as the growth in employment is not matched by real value added growth; and (3) positive …

of convergence of transition countries with developed market economies. The study focuses on competition and market … reliance on retained earnings in transition countries reflects a maturation of the sector as new firms come to rely less on … in the transition countries that joined the European Union in 2004 than in the other, lower-income transition economies. …

This Paper surveys the theoretical literature on the effect of soft budget constraints (SBC) on economies in transition … centralized economies, devolution, and banking reform in transition economies. Moreover, we argue that SBC also bear on major …