We develop a model that shows how rent-seeking behavior on the part of division managers can subvert the workings of an internal capital market. In an effort to stop rent-seeking, corporate headquarters will be effectively forced into paying bribes to some division managers. And because...

In this study, we examine the association between CFO gender and corporate investment efficiency, namely the extent of firm-level over-investments. Prior studies show that female CFOs are more risk-averse and conservative than male CFOs when making various corporate accounting and strategic...

In the second article, I examine the impact of managerial optimism on corporate policies and agency costs within a model of dynamic corporate investment for a financially constrained firm. An optimistic manager is defined as a manager who over-evaluates the profitability of the firm assets. The...