This study investigates the development and sustainability of a firm’s IT capability reputation from an IT executive’s standpoint. Building on institutional theory, we argue that IT executives will try to achieve external legitimacy - i.e., project an image of superior IT capability to...

Corporate governance is a recent concept that encompasses the costs caused by managerial misbehavior. Corporate governance is concerned with how organizations in general, and corporations in particular, produce value and how that value is distributed among the members of the corporation, its...

We study the determinants of private benefits of control in negotiated block transactions. We estimate the block pricing model in Burkart, Gromb, and Panunzi (2000) explicitly dealing with the existence of both block premia and block discounts in the data. We find evidence that the occurrence of...

In this paper I present a theory of the boundary of the firm that accounts for some important characteristics of real-world multidivisional firms: Operative decisions are in the hands of middle managers who are rewarded with incentive contracts based on the performance of their units; Managers'...

I extend Jensen and Meckling 1976 (“JM”) to show that the change in the firm's performance from the decision on who manages is composed of 1) JM's management agency costs and 2) skill differential agency cash flows: the difference between the owner and the firm's alternate manager in...