This paper studies the equilibrium size of countries. Individuals in small countries have greater influence over the nature of political decision mak- ing while individuals in large countries have the advantage of more public goods and lower tax rates. The model implies that (i) there exists...

We analyze a simple model of local public good provision in a country consisting of a large number of heterogeneous regions, each comprising two districts, a city and a village. When districts remain autonomous and local public goods have positive spillover effects on the neighbouring district,...

Organizational theory has construed complexity as an objective characteristic of either the structure or the behaviour of an organization. We argue that to further our understanding it should be understood in terms of human cognition of a structure or behavior. This cognitive twist is...

This article investigates empirically whether and to what extent initial capital constraints hinder entrepreneurial performance once the venture has been started. Prior empirical research in this area could investigate this issue only indirectly by lack of data. The key contribution of this...

This paper analyzes the impact of blockownership dispersion on firm value. Blockholdings by multiple blockholders is a widespread phenomenon in the U.S. market. It is not clear, however, whether dispersion among blockholder is preferable to having a more concentrated ownership structure. To test...

We analyze financial support for the entrepreneurial sector. State support can raise welfare by relaxing financial constraints, but it can also reduce lending standards if entrepreneurs substitute public sources of collateral for their own assets, if it encourages excessive entrepreneurial...

In a democracy, a political majority can influence both the corporate

See 'Political Connections And Preferential Access To Finance: The Role Of Campaign Contributions' in <A HREF="http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6VBX-4P3DY39-4&_user=499884&_rdoc=1&_fmt=&_orig=search&_sort=d&_docanchor=&view=c&_searchStrId=1004038141&_rerunOrigin=scholar.google&_acct=C000024499&_version=1&_urlVersion=0&_userid=499884&md5=d48c00bd293b73b16a75eb763ff75630"><I>Journal of Financial Economics</I>, 2008, 88(3), 554-580</A>.

This paper considers financial, operational, solvency, and performance ratios, in order to detect when there were balance sheets’ variations related to the 1994 Mexican currency crisis. Quarterly results for 88 non-financial Mexican companies that survived the crisis are used, and tests for...

We study whether the Sarbanes-Oxley Act (SOX) of 2002 made firms less opaque. For identification, we use a difference-in-differences estimation approach and compare EU firms that are cross-listed in the US—and therefore subject to SOX—with comparable EU firms that are not cross-listed. We...