Using novel data on European firms, this paper examines the effect of business group affiliation on innovation. We find that business groups foster the scale and novelty of corporate innovation. Group affiliation is particularly important in industries that rely more on external finance and have...

This paper uses a vertical relational contract between two firms to explore the implications of trade credit when the ability to repay is not observed by the supplier.  Trade credit limits the supplier's possibilities to punish the cashless downstream firms and termination may be used in...

The increasing number of antitrust cases that affect more than one country calls for more active cooperation between competition authorities.  I analyse the impact of exchange of confidential information between two authorities deciding on a multinational merger.  The authorities want to clear...