Showing 1 - 10 of 74
This paper centres around the question of ownership of firms and managerial competition and how these affect managers … and employees’ incentives to invest in human capital. We argue that employees’ incentives in human capital investment are … affected by both ownership and competition since both ownership structure and competition provide bargaining chips to employees …
Persistent link: https://www.econbiz.de/10010928689
This paper tests for the importance of cash flow on investment in fixed capital and R&D using firm-level panel data in … investment or R&D. In identical specifications for British firms, cash flow is informative about investment, although not about … the level of R&D spending conditional on the R&D participation decision. In the UK, we also find that investment is less …
Persistent link: https://www.econbiz.de/10010884496
This paper analyses a dynamic game of investment in R&D or advertising, where current investments change future market … conditions. It investigates whether underinvestment can be supported in equilibrium by the threat of escalation in investment … investment in equilibrium. Furthermore, potential entry is introduced into the model so as to address the issues of market …
Persistent link: https://www.econbiz.de/10010745545
incentive effect of competition on innovation and the effect competition has on the degree of credit rationing. I find that the … negative effect of financial constraints on firm- and aggregate-level R&D investment is most pronounced at both high and low … levels of competition. These predictions are supported by empirical evidence: The competition-innovation relationship has an …
Persistent link: https://www.econbiz.de/10010745834
In the Former Soviet Union, the early 1990s were characterized by large falls in GDP and small changes to already low unemployment. The slow adjustment to unemployment was a result of employers using various means to maintain employment levels, including; extended periods of unpaid leave,...
Persistent link: https://www.econbiz.de/10011126101
In the wake of the financial crisis output fell dramatically while inflation remained above its target and productivity collapsed relative to its previous trend. The fall in productivity relative to trend was particularly pronounced within the service sector, and then most particularly in...
Persistent link: https://www.econbiz.de/10011126118
We examine how cheap talk communication between managers within the same firm depends on the type of decisions that the firm makes. A firm consists of a headquarters and two operating divisions. Headquarters is unbiased but does not know the demand conditions in the divisions' markets. Each...
Persistent link: https://www.econbiz.de/10011126143
We explain a counterintuitive empirical finding: Firms facing more import competition do more innovation. In our model …, factors are trapped inside a firm. An increase in import competition encourages a firm to innovate by reducing the opportunity … growth. With trapped factors, firms that face more import competition do relatively more innovation. The extra innovation …
Persistent link: https://www.econbiz.de/10011126195
We estimate the impact of a carbon tax on manufacturing plants using panel data from the UK production census. Our identification strategy builds on the comparison of outcomes between plants subject to the full tax and plants that paid only 20% of the tax. Exploiting exogenous variation in...
Persistent link: https://www.econbiz.de/10011126344
This paper develops a model of endogenous product selection by firms. The theory is motivated by new evidence we present on the importance of product switching by U.S. manufacturers. Two-thirds of continuing firms change their product mix every five years, and product switches involve more than...
Persistent link: https://www.econbiz.de/10010884551