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This paper analyzes the allocation of decision-making authority when the principal has reputation concerns. The … evaluator cannot observe who makes the decision. Thus, the principal can share the blame with the agent when a decision is … the buck may also occur: when the evaluator believes that the agent is also responsible for the decision making, the …
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in the financial analysis of a firms’ innovation decision. After discussing the theoretical linking between ownership …’s behavior toward the innovation decision and his cognitive commitment level. The CEO’s commitment bias and attitude conception … of the manager’s attitude and behavior in key tasks, such as the innovation decision. The CEO’s real behavior was more …
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The effects of corporate taxation on firm behavior have been extensively discussed in the neoclassical model of firm behavior which abstracts from agency problems. As emphasized by the corporate governance literature, corporate investment behavior is however crucially influenced by diverging...
Persistent link: https://www.econbiz.de/10003923146
This paper investigates whether investment spending of firms is sensitive to the availability of internal funds. Imperfect capital markets create a hierarchy for the different sources of funds such that investment and financial decisions are not independent. The relation between corporate...
Persistent link: https://www.econbiz.de/10010493784
Persistent link: https://www.econbiz.de/10010493785