This article studies, from an agency perspective, the factors that explain the franchisor decision to integrate versus franchise its outlets. The analysis of a sample of Spanish franchise networks shows that franchising is more likely when: a) the costs of inefficient risk allocation between...

Agency theory emphasizes that separating ownership and control can lead to inefficiencies in corporations, but the literature on strategic delegation points out that the owner will profit from this separation due to advantages from self-commitment. In this paper, both literatures are combined....

This paper introduces and discusses an idea which minimizes gaming or manipulation activities, if payments are linked to results from manipulative methods. The idea is to add nonmanipulable information to manipulable information to improve the evaluation of a given output. A score declining in...

Recent corporate scandals and subsequent regulatory actions have heightened both the academic communities and the public's interest in corporate governance issues. Academics have long argued that voting rights constitute a critical component of a system of corporate governance. We provide...

A comparison of incentive clauses of players’ contracts in German soccer and clauses used in the NFL and NBA shows considerable differences. Against the background of principle-agent theory we have a closer look at these incentive systems. In contrast to other industries it is easy to observe...

The corporate governance is a central and dynamic aspect of the businesses. The term governance comes from the latin “gubernare”, meaning to guide and supposes that the corporate governance imply equally both the leadership function and that of control. As is known there are more ways of...

The economic theories and the accounting regulations deriving from them should be reconsidered for SMEs. At global level, there are accomplishments in this respect – IASB IFRS for SMEs – or intentions – European Commission proposals for certain simplifications of the European directives....

A minimum performance insurance in the Principal-Agent problemis wealth reducing to the principal. This result points to further ine±-ciencies in mandatory individual Pension Funds' contracts, particularlythe one established in the 1993's 100th Law in Colombia.