The purpose of this article is to develop a theory of managerial compensation and capital structure that explicitly accounts for the interdependence of a firm's capital structure and managerial compensation.

While the paper examined the effect of different tax regimes on the Israeli automobile market, the main contribution of this paper is the methodology it employs. As demonstrated, owr framework provides a methodology for examining the effects of changes in tax regimes in differential product...

We study selection contests in which the strategic variable is degree of risk rather than amount of effort. The selection efficiency of such contests is examined. We show that the selection efficiency of a contest may be improved by limiting the competition in two ways; a) by having a small...

We have argued that convertible debt can be better than a simple mixture of debt and equity in stage financing situations. When the venture capitalist retains the option to abandon the project if in the medium term he receives a negative signal, the entrepreneur has an incentive to engage in...

We develop a model of firm size in which firms are unable to access as many consumers as they want. Nwely arrived consumers match randomly with firms. Subsequently consumers must pay "search costs"to be able to switch firms.