We study the efficiency of the negotiated transfer pricing mechanism proposed by Edlin and Reichelstein (1995) for solving a bilateral holdup problem in a multinational enterprise. Our main finding is that the proposed renegotiation procedure will generally not provide incentives for efficient...

We investigate experimentally how the enforcement of negative say on pay (SoP) votes affects a CEO's investment incentives, the level and structure of executive compensation, and firm performance. We operationalize the board's discretion in response to a no-vote via three levels of SoP...

We study the optimal accounting policy of a financially constrained firm that pledges assets to raise debt capital for financing a risky project. The accounting system provides information about the value of the collateral. Absent accounting regulation, the optimal accounting system is...