I explore the evolving role of accounting information in allocating capital. Accounting arose to control conflicts of interest in organizations (stewardship role). The industrial revolution spawned capital-intensive firms and public capital markets with dispersed shareholders to finance these...

Contrary to previous literature we hypothesize that labor's interest may well – like that of shareholders – aim at securing the long-run survival of the firm. Consequently, employee representatives on the supervisory board could well have an interest in increasing incentive-based...

Deputy Crown Prince Muhammad bin Salman's remarks about an initial public offering (IPO) for a stake in Saudi Aramco is a shot across the bow for many – the world's major international oil companies (IOCs), other nations and their state-owned national oil companies (NOCs), and all those within...

The profit non-distribution constraint (NDC) is the basic requirement for non-profit tax privileges all over the world. In donative non-profits it is justified by the need to prevent donors' exploitation by firm owners. Donative non-profits, however, are not the only type of third-sector...

This paper presents a parsimonious, structural model that isolates primary economic determinants of the level and dispersion of managerial ownership, firm scale, and performance and the empirical associations among them. In particular, variation across firms and through time of estimated...

Numerous studies document that diversified firms sell at a discount relative to comparable portfolios of stand-alone firms. One explanation is that these firms suboptimally invest by subsidizing poor performing business segments with resources from profitable business segments. On average, firms...

We find a strong systematic component in coupon spreads - the differences between notes' values and the values of replicating portfolios of fungible strips - that is strengthening over time. The first factor in coupon spreads is correlated with Hu, Pan, and Wang's (2011) measure of arbitrage...

We use data on 11,233 firms across 22 emerging markets to analyze how credit constraints and low-quality firm management inhibit corporate investment in green technologies. For identification we exploit quasi-exogenous variation in local credit conditions and in exposure to weather shocks. Our...

In this paper, we discuss a scenario in capital structure where two divisional managers compete for capital from a firm for their projects in a perfect information setting. Each project’s profit is an inverted u-shape function with respect to capital. We consider verifiable profits and study...

We use data on 11,233 firms across 22 emerging markets to analyze how credit constraints and low-quality firm management inhibit corporate investment in green technologies. For identification we exploit quasi-exogenous variation in local credit conditions and in exposure to weather shocks. Our...