Using social exchange theory, we explore the exchange of favors and different rules of exchanges in China, Japan, and India. Although social exchange theorists have directed their attention to the universality of the norms of reciprocation and have indicated the prevalence of an instrumental...

We extend agency theory to propose that structural reform positively impacts firm profitability in developing countries because the improvements in external monitoring that accompany structural reform decrease the agency costs faced by firms. However, we also argue that not all firms benefit...