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In this paper, I compare two different approaches to model implicit contracting, the infinite-horizon approach typically used in the literature and afinite-horizon approach building on an adverse-selection model. I demonstrate that even the most convincing result of the infinite-horizon...
Persistent link: https://www.econbiz.de/10010343951
Business groups in emerging markets perform better than unaffiliated firms. One explanation is that business groups substitute some functions of missing institutions, for example, enforcing contracts. We investigate this by setting up a model where firms within the business group are connected...
Persistent link: https://www.econbiz.de/10010365879
Equity ties between businesses change the division of the firms joint profits, thereby affecting incentives for relation-specific investments and other strategic actions. Depending on which side owns the equity and how readily the equity can be resold, we find that the changed incentives can...
Persistent link: https://www.econbiz.de/10011568807
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Research on "trust" now forms a prominent part of the research agenda in history and the social sciences. Although this … research has generated useful insights, the idea of trust has been used so widely and loosely that it risks creating more … confusion than clarity. This essay argues that to the extent that scholars have a clear idea of what trust actually means, the …
Persistent link: https://www.econbiz.de/10011610585
the power of our approach with the analysis of trust and trustworthiness in Germany by combining representative survey … elicit people's trust correlate well with behaviorally exhibited trust in the experiment. People above the age of 55, highly … favoring the Social Democratic Party or the Christian Democratic Party exhibit more trust. People above the age of 65 and those …
Persistent link: https://www.econbiz.de/10011437195
This paper reports on the ownership and control structures of publicly listed firms in Turkey using data from 2001. While holding companies and non-financial firms are the most frequent owners at the direct level, families ultimately own more than 80 percent of all publicly listed firms in...
Persistent link: https://www.econbiz.de/10011528161
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