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The property-rights theory assumes that trade is non-contractible ex-ante and focusses exclusively on the allocation of property-rights. We derive foundations for this focus on property-rights by identifying scenarios where only one of the simple ownership structures is optimal even though trade...
Persistent link: https://www.econbiz.de/10011539180
Does corporate governance structure matter for firm value? We develop a model in which the allocation of control rights between shareholders and managers (“governance structure”) affects managers' incentive to invest (strong governance tightens managerial freedom and weak governance loosens...
Persistent link: https://www.econbiz.de/10012850031
costs can arise from honest mistakes (which generate competence costs) and from disloyal conduct (which generates conflict … costs). Because the expected costs of competence and conflict are firm-specific, the optimal division of control is firm …
Persistent link: https://www.econbiz.de/10012972091
Minority shareholdings have been on the regulatory agenda of competition authorities for some time. Recent empirical studies, however, draw attention to a new, thought provoking theory of harm: common ownership by institutional investors holding small, parallel equity positions in several...
Persistent link: https://www.econbiz.de/10013241599
becomes more serious, the players devote fewer resources to the intra-group conflict. Moreover, there is also a 'reversed …
Persistent link: https://www.econbiz.de/10010361994
In many situations there is a potential for conflict both within and between groups. Examples include wars and civil … wars and distributional conflict in multitiered organizations like federal states or big companies. This paper models such … situations with a logistic technology of conflict. If individuals decide simultaneously and independently about the amount of …
Persistent link: https://www.econbiz.de/10010343958
Recent years have witnessed an enormous amount of reorganization of the corporate sector in the US and in Europe. This paper examines the role of market competition for this trend in corporate reorganization. We find that at intermediate levels of competition the CEO of the corporation decides...
Persistent link: https://www.econbiz.de/10010440959
When do opposition groups decide to mount a terrorism campaign and when do they enter an open civil conflict against … the ruling government? This paper models an opposition group's choice between peace, terrorism, and open conflict …. Terrorism emerges if executive constraints are intermediate and rents are sizeable. Open conflict is predicted to emerge under …
Persistent link: https://www.econbiz.de/10011493846