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Empire-Builders and Shirkers : Investment, Firm Performance, and Managerial Incentives

Aggarwal, Rajesh K. - 1999

shareholders and managers in which managers have private benefits or private costs of investment. Managers overinvest when they … have private benefits and underinvest when they have private costs. Optimal incentive contracts mitigate the over- or …, in isolation, is insufficient to identify whether managers have private benefits or private costs of investment. In order …

Persistent link: https://www.econbiz.de/10012471449

A Theory of Firm Decline

Clementi, Gian Luca - 2009

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

Asset Sales, Firm Performance, and the Agency Costs of Managerial Discretion

Lang, Larry - 1994

We argue that management sells assets when doing so provides the cheapest funds to pursue its objectives rather than for operating efficiency reasons alone. This hypothesis suggests that (1) firms selling assets have high leverage and/or poor performance, (2) a successful asset sale is good news...

Persistent link: https://www.econbiz.de/10012474282

Technology and Resilience

Comin, Diego; Cruz, Marcio José Vargas da; Cirera, Xavier - National Bureau of Economic Research - 2022

This paper estimates the impact of technology sophistication pre-COVID-19 on the performance of firms during the early stages of the pandemic. We exploit a unique data covering firms from Brazil, Senegal, and Vietnam using a treatment effect mediation framework to decompose the results into a...

Persistent link: https://www.econbiz.de/10012814419

Pandemics, Vaccines and Corporate Earnings

Hong, Harrison - 2020

We estimate a model of damage to corporate earnings from COVID-19. An unexpected pandemic lowers current earnings due to costly mitigation and reduces growth rates. Damage depends on the expected arrival of a vaccine that reverts earnings to normal. Using this model, we infer from analysts'...

Persistent link: https://www.econbiz.de/10012481132

The Impact of COVID-19 on Small Business Owners : The First Three Months after Social-Distancing Restrictions

Fairlie, Robert W. - 2020

Social distancing restrictions and health- and economic-driven demand shifts from COVID-19 are expected to shutter many small businesses and entrepreneurial ventures, but there is very little early evidence on impacts. This paper provides the first analysis of impacts of the pandemic on the...

Persistent link: https://www.econbiz.de/10012481317

Small Business Survival Capabilities and Policy Effectiveness : Evidence from Oakland

Bartlett, Robert P, III. - 2020

size as a function of revenue resiliency, labor flexibility, and committed costs. Nonemployer businesses rely on low cost … risk from committed costs. Finally, inconsistent with the spirit of Chetty-Friedman-Hendren-Sterner (2020) and Granja …

Persistent link: https://www.econbiz.de/10012481482

Working Remotely and the Supply-side Impact of Covid-19

Papanikolaou, Dimitris - 2020

We analyze the supply-side disruptions associated with Covid-19 across firms and workers. To do so, we exploit differences in the ability of workers across industries to work remotely using data from the American Time Use Survey (ATUS). We find that sectors in which a higher fraction of the...

Persistent link: https://www.econbiz.de/10012481524

Industrial Clusters, Networks and Resilience to the Covid-19 Shock in China

Dai, Ruochen - 2020

We examine how exposure of Chinese firms to the Covid-19 shock varied with a cluster index (measuring spatial agglomeration of firms in related industries) at the county level. Two data sources are used: entry flows of newly registered firms in the entire country, and an entrepreneur survey...

Persistent link: https://www.econbiz.de/10012482220

Supervisors and Performance Management Systems

Frederiksen, Anders - 2017

Supervisors occupy central roles in production and performance monitoring. We study how heterogeneity in performance evaluations across supervisors affects employee and supervisor careers and firm outcomes using data on the performance system of a Scandinavian service sector firm. We show that...

Persistent link: https://www.econbiz.de/10012455330