A system for measuring the economic and financial performance plays an important role in managing a business, because it provides the information necessary for decision making and launching of various actions. Tools and indicators for measurement and evaluation of economic and financial...

The objective of this study is to investigate the impact of corporate diversification in a sample of 255 Turkish firms for the period between 2006 and 2012. Regression results indicate that diversified firms trade at a premium compared to single-segment firms. To explain this finding, we also...

This paper examines the effect of corporate diversification on firm value during periods of economic downturns. Analysis of diversified firms’ valuation during recessionary periods reveals a significant increase in relative value of diversified firms. The observed improvement in the relative...

We show that, in the context of the market for a professional service, adverse selection problems can sufficiently exacerbate moral hazard considerations so that even though all agents are risk neutral, welfare can be reduced by allowing the agent to �buy the firm� from the principal....

We model the game between an informed seller (a lawyer) and an uninformed buyer (a potential client) over the choice of compensation for the lawyer to take a case to trial, when there is post-contracting investment by the lawyer (effort at trial) that involves moral hazard. Clients incur a...

This prelude introduces the first symposium of this journal devoted to the structure, conduct, and performance of principal-agent models in a broad view. Five papers, exemplifying recent developments and targeting readers of interdisciplinary interest, are summarized.