This paper studies the effects of international taxation on multinational firms' production outsourcing strategies, which has attracted recent attention from both practitioners and legislators. We find that under the territorial tax system, the presence of global tax disparity may result in...

In practice, interest expense can account for a large proportion of firms' costs, while the interest rate is often influenced by a firm's market prospect. In the presence of information asymmetry, a firm may have an incentive to borrow a larger amount, thereby signaling a high prospect to the...

Problem definition: We study how a firm should design its compensation plan to include both the sales performance and the operational performance (i.e., the supply/demand mismatch), for its sales division, who not only exerts unobservable demand-enhancement efforts but also makes the inventory...