It is known that risk-neutral workers bear the full costs of general training. This result is contingent upon the assumption that all firms have complete information about workers' postinvestment productivities. The authors show that, if information is not perfect, the better-informed employer...

This paper examines the firm's optimal wage and layoff policies in situations where only general training is provided and the firm providing training has an advantage in information over other firms. The asymmetric information among firms creates adverse selection that seriously impairs the...

Previous studies of insider trading have examined the profitability to executives of their stock trading with a view to evaluating the informational efficiency of securities markets. The authors examine empirically whether insider trading raises or lowers firm value. To correctly identify the...