This paper explores the impact of the behaviour of a firm and its management on its stakeholders operating within the framework of Islamic law and morality and draws a sketch of a socially responsible enterprise which Islam idealizes in the domain of business and trade. The study suggests that...

A growing body of literature in accounting and finance relies on implied cost of equity (COE) measures. Such measures are sensitive to assumptions about terminal earnings growth rates. In this paper we develop a new COE measure that is more accurate than existing measures because it incorporates...

Financial constraints are widespread in developing countries, where even short term credit is limited. Finance held by firms as working capital is a substantial proportion of sales revenue, yet the role of working capital is largely neglected by existing models of financial constraints. I...

When economists have considered organizations, much attention has focused on the boundary of the firm, rather than its internal structures and processes. In contrast, this review sketches three approaches to the economic theory of internal organization—one substantially developed, another...

Alfred D. Chandler's work highlighted the complicated interplay between markets and firms, especially the arrangements created by firms to buffer and manage market forces. Arguably his most important work examines one aspect of firms, organizational structure, and how it changed in response to...

Corporate governance practice is mainly centered on the protection of investors' rights. However, this view neglects the fundamental changes in the operating conditions of business due to globalization and the weakening of regulatory frameworks. Weak or absent enforcement of contracts,...

We develop a theory of a firm in an environment with incomplete contracts. The firm's headquarter decides on the complexity, the organization, and the global scale of its production process. Specifically, it decides: i) on the mass of symmetric intermediate inputs that are part of the value...