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the different roles of stock holdings and option holdings in solving agency problems, managers may smooth past earnings … holdings aligning the interests of managers and shareholders, and managers using discretionary accruals to smooth past earnings … risk-taking by managers, and managers use discretionary accruals to mask volatility of less predictable earnings. Thus, we …
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This article surveys recent research on the relationship between trust and growth. It documents the strong international and interregional heterogeneity of trust. The theoretical mechanisms that explain the influence of trust on economic performance and the empirical methods used to identify the...
Persistent link: https://www.econbiz.de/10013078111
Using data from US states, we find a positive relationship between trust and growth. According to our results, a 10 percentage point increase in trust increases the growth rate of per capita income by 0.5 percentage point, growth rate of housing prices by 1.25 percentage points, and the growth...
Persistent link: https://www.econbiz.de/10014049010
rate of investment. The predictions of the model are examined empirically for a cross-section of countries and have …
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and show that low trust environments reduce the rate of investment and thus the economy's growth rate. Further, we show …-trust societies, in turn, exhibit higher rates of investment and growth …
Persistent link: https://www.econbiz.de/10014209521
Cost stickiness occurs when costs decrease less when sales fall than they increase when sales rise. Prior literature provides both economic and agency explanations of sticky costs. Our study tackles this cost behavior from a managerial behavioral perspective. We predict and find that cost...
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