Existing theories of a firm’s optimal capital structure seem to fail in explaining why many healthy and profitable … firms rely heavily on equity financing, even though benefits associated with debt (like tax shields) appear to be high and … the bankruptcy risk low. This holds in particular for firms that show a strong commitment towards their workforce and are …

Firms adjust to differences in market size and demand uncertainty by changing the frequency and size of their export … data we confirm that firms adjust on both margins for market size. In a stochastic setting, firms adjust to increased …

Using a Cournot oligopoly model with an endogenous number of firms and evasion of indirect taxes, this paper shows that …

firm behaviour in markets. Topics discussed include the impact of imitative and satisficing behavior by firms, outcomes … preferences on the ability to collude, and the incentive for profit-maximizing firms to mimic irrational behavior. …

Decisions by firms and individuals on the extent of their tax payments have generally been treated as separate choices …

Firms may evade taxes on profits and can also avoid fulfilling legal restrictions on production activities by bribing …

self-fulfilling multiple equilibria arise.I analyze the implications of this fragility for the governance of the Eurozone …. I conclude that the new governance structure (ESM) does not sufficiently recognize this fragility. Some of the features …

governance, and institutional reforms have played a significant role in raising economic output and efficiency in both Croatia …

We analyze whether or not the globalization of capital, ‘disciplines’ governments and improves governance. We … demonstrate that globalization affects governance, by increasing a country’s vulnerability to sudden capital flight. This … increased threat of capital flight can discipline governments and improve governance and welfare by placing countries in a …

good governance, including democracy. The paper then turns from anecdotal to econometric analysis by offering a quick …