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We show that competing downstream firms may rather invest in their inefficient inhouse production than help improve the technology of the efficient supplier, even if this is costless. Even worse, a downstream firm can have strong incentives to decrease the efficiency of the supplier in order to...
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We test the hypothesis whether a specific aspect of culture - trust in others - affects shareholder voting behavior by … in high-trust countries while the percentage of votes in support of management proposals is higher. Shocks to trust and … monitoring when trust is high. …
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We test the hypothesis that a specific aspect of culture - trust in others - affects shareholder voting behavior as it … shareholder meetings is lower in high-trust countries while the percentage of votes in support of management is higher. Shocks to … trust and IV regressions support this result. We also find that shareholder voting is more valuable in low-trust countries …
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