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Competition and opportunistic advice of financial analysts: theory and evidence

Sette, Enrico - London School of Economics (LSE) - 2007

. This empirical prediction is tested on data about recommendations on IPOs. The main result is that analysts working for the …This work investigates both theoretically and empirically how the behaviour of financial analysts is affected by … competition, measured as the strength of coverage of a stock from other analysts. The interaction among analysts and investors is …

Persistent link: https://www.econbiz.de/10011071323

Optimal contracting and the organization of knowledge

Fuchs, William; Garicano, Luis; Rayo, Luis - London School of Economics (LSE) - 2014

We study contractual arrangements that support an efficient use of time in a knowledge-intensive economy in which agents endogenously specialize in either production or consulting. The resulting market for advice is plagued by informational problems, since both the difficulty of the questions...

Persistent link: https://www.econbiz.de/10011126635

Evolution of decision and control rights in venture capital contracts: an empirical analysis

Bienz, Carsten; Walz, Uwe - London School of Economics (LSE) - 2006

We analyze the structure and evolution of the allocation of decision and control rights in venture capital contracts by using a sample of 464 contracts between venture capitalists (VC) and portfolio firms from Germany. We focus on the evolution of control and decisions rights along three time...

Persistent link: https://www.econbiz.de/10010745436

The dynamics of venture capital contracts

Bienz, Carsten; Hirsch, Julia - London School of Economics (LSE) - 2005

We analyze the degree of contract completeness with respect to staging of venture capital investments using a hand-collected German data set of contract data from 464 rounds into 290 entrepreneurial firms. We distinguish three forms of staging (pure milestone financing, pure round financing and...

Persistent link: https://www.econbiz.de/10010746202

Product market competition returns to skill and wage inequality

Guadalupe, Maria - London School of Economics (LSE) - 2005

This paper shows that increasing product market competition can have a direct impact on the employment relationship and on wage inequality. I develop a simple model in which an increase in product market competition increases returns to skill through the effect of competition on the sensitivity...

Persistent link: https://www.econbiz.de/10010884671

Coordinating tasks in M-form and U-form organisations

Qian, Yingyi; Roland, Gerard; Xu, Cheng-Gang - London School of Economics (LSE) - 2003

We model the coordination of specialised tasks inside an organisation as "attribute matching". Using this method, we compare the performance of organisational forms (M-form and U-form) in implementing changes such as innovation and reform. In our framework, organisational forms affect the...

Persistent link: https://www.econbiz.de/10010928762

Hierarchic contracting

Sanchez, Miguel A.; Hortala-Vallve, Rafael - London School of Economics (LSE) - 2005

We analyze the contracting structure in a moral hazard setting with several agents where output is produced jointly and is the only contractible variable. Since the salary of each agent is a function of all agents efforts, a positive externality arises between them. This externality is not...

Persistent link: https://www.econbiz.de/10010928768

Cooperatives vs. outside ownership

Hart, Oliver; Moore, John - London School of Economics (LSE) - 1998

We are concerned with the design of a constitution for a firm - an ex ante contract which assigns residual rights of control (and possibly residual income rights) without reference to the issue to be decided. We focus attention on two polar constitutions: non-profit cooperatives and outside...

Persistent link: https://www.econbiz.de/10010928786

Offshoring: general equilibrium effects on wages, production and trade

Baldwin, Richard E.; Robert-Nicoud, Frédéric - London School of Economics (LSE) - 2007

A simple model of offshoring is used to integrate the complex gallery of results that exist in the theoretical offshoring/fragmentation literature. The paper depicts offshoring as ‘shadow migration’ and shows that this allows straightforward derivation of the general equilibrium effects on...

Persistent link: https://www.econbiz.de/10010744894

On the design of hierarchies: coordination versus specialization

Hart, Oliver; Moore, John - London School of Economics (LSE) - 1999

We develop a model of hierarchies based on the allocation of authority. A firm's owners have ultimate authority over a firm's decisions, but they have limited time or capacity to exercise this authority. Hence owners must delegate authority to subordinates. However, these subordinates also have...

Persistent link: https://www.econbiz.de/10010744898