This paper examines the effectiveness of multinational enterprises capital budgeting decisions as compared to the decisions of purely domestic enterprises. This is an important question because of multinationals role in allocating capital globally. Answering this question may also shed light on...

We study how the investor protection environment affects corporate managers incentives to take value-enhancing risks. In our model, the manager chooses higher perk consumption when investor protection is low. Since perks represent a priority claim held by the manager, lower investor protection...

Around the world, large corporations usually have controlling owners, who are usually very wealthy families. Outside the U.S. and the U.K., pyramidal control structures, cross shareholding and super voting rights are common. Using these devices, a family can control corporations without making a...

Roll (1988) observes low R2 statistics for common asset pricing models due to vigorousfirms-specific returns variation not associated with public information. He concludes (p. 56) that this implies acirc;not;Seither private information or else occasional frenzy unrelated to concrete...