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Profitability, as measured by gross profits-to-assets, has roughly the same power as book-to-market predicting the cross-section of average returns. Profitable firms generate significantly higher average returns than unprofitable firms, despite having, on average, lower book-to-markets and...
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Traditional human capital theory emphasizes a worker's investment in knowledge. However, when a worker is faced with day-to-day problems on the job, the solutions to the problems often require more knowledge from a team of experts within the firm. When a worker taps into the knowledge of...
Persistent link: https://www.econbiz.de/10012463031
We study the problem of an investor who buys an equity stake in an entrepreneurial venture, under the assumption that the former cannot monitor the latter's operations. The dynamics implied by the optimal incentive scheme is rich and quite different from that induced by other models of repeated...
Persistent link: https://www.econbiz.de/10012463457
The existing literature on firms, based on incomplete contracts and property rights, emphasizes that the ownership of assets - and thereby firm boundaries - is determined in such a way as to encourage relationship-specific investments by the appropriate parties. It is generally accepted that...
Persistent link: https://www.econbiz.de/10012464034
expenses incurred to satisfy these regulations, such as investment in pollution abatement capital, is unproductive in terms of … paper we construct a model which explicitly recognizes the difference between pollution abatement capital and "productive … and Germany, and thereby assess the impact of increased pollution abatement capital regulation on productivity growth. Our …
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