This paper presents a simple profitability-based decision model to show how synergistic gains generated by the joint adoption of complementary innovations may influence the firm's adoption decision. For this purpose a weighted index of intra-firm diffusion is built to investigate empirically the...

We model the channels through which public expenditure on infrastructure influences firm value and shapes its investment decisions via both adjustment costs and marginal profitability of capital. We test these hypotheses by using a large panel of Italian firms. Empirical results show that...

This paper investigates the characteristics of firms that adopt persistent policies of low leverage and substantial cash reserves. In doing so, specific attention is paid to the role of internal corporate governance mechanisms in influencing firms' conservative financial policies. The analysis...

We investigate whether the investment-cash flow sensitivity is monotonic in the degree of financing constraints. By using a large panel of publicly traded non-financial U.K. firms, we show that the investment-cash flow sensitivity is neither monotonically increasing nor decreasing in the most...

This paper explores and contrasts the factors contributing to the differences between Italy and the UK in the diffusion of unleaded petrol. Although subject to similar regulatory environments the countries exhibit very different patterns in the use of unleaded fuel. It is shown that differences...

Using data from the third UK Community Innovation Survey we model the usage of e-business across and within firms in the UK in the year 2000 as a single observation upon an integrated process of inter- and intra-firm diffusion. The intra-firm dimension is a significant extension to standard...

This study employs Stochastic Frontier Analysis (SFA) to analyse Malaysian commercial banks during 1996-2002, and particularly focuses on determining the impact of Islamic banking on performance. We derive both net and gross efficiency estimates, thereby demonstrating that differences in...