Evaluates the agency problems associated with company owned versus franchised units in order to determine whether these agency considerations affect the own/franchise decision. Information on the ownership characteristics of franchise firms were gathered from 112 responses to queries sent to...

Internal documents released through the Enron litigation allow for a more detailed examination of the activities of top executives than is typically possible. This clinical study of Enron's Ken Lay highlights the difference between popular opinion on the role and knowledge of CEOs with that...

This study uses agency theory to develop testable implications about three provisions commonly observed in franchise contracts: (1) restrictions on passive ownership, (2) area development plans, and (3) mandatory advertising expenditures. The primary hypothesis is that these provisions are most...

This paper develops cross-sectional implications about the assignment of rights in franchise contracts. These implications are tested using a large sample of franchise agreements. The tests support the predictions and suggest that restrictive provisions (such as mandatory advertising,...

We examine a vertical integration decision within the commercial banking industry. During the last quarter of the 20th century, some community banks reduced their traditional reliance on correspondent banks for upstream products and services by joining bankers' banks, a form of business...

This article provides evidence on the determinants of royalties and upfront fees in share contracts by examining how state franchise termination laws affect franchise contracts. The results are consistent with the joint hypothesis that the two-sided moral hazard model explains the terms in...

Empower your students to solve today’s important business problems with the basic tools of economics and without overwhelming calculus. Ideal for MBA courses, Brickley focus on data-driven decision-making and managerial applications within the structure of an organization. Using...

Agency theory implies that asset ownership and decision authority are complements. Using 1998 data from Texas commercial banks, we test whether the likelihood of local ownership of bank offices increases with the importance of granting local managers greater decision authority (for example, due...