Evolutionary arguments are often used to justify the fundamental behavioral postulates of competive equilibrium. Economists such as Milton Friedman have argued that natural selection favors profit maximizing firms over firms engaging in other behaviors. Consequently, producer efficiency, and therefore Pareto efficiency, are justified on evolutionary grounds. We examine these claims in an evolut...

This paper examines how current legislative and regulatory models do not adequately govern the pharmaceutical industry towards ethical scientific conduct. In the context of a highly profit-driven industry, governments need to ensure ethical and legal standards are not only in place for companies but that they are enforceable. We demonstrate with examples from both industrialized and developing ...

This paper examines a firm’s investment intensity and timing decisions using a real options approach. The firm is endowed with a perpetual option to invest in a project at any time by incurring an irreversible investment cost at that instant. The amount of the irreversible investment cost determines the intensity of investment with decreasing returns to scale. The project generates a stream of ...

This chapter analyzes the process of forming a coalition within a corporate network. The objective of the partner companies is to create a multi-stage manufacturing system, which generates a chain of increased value from raw materials to end-user market. This process is studied by cooperative game theory, through the key problems of maximizing the total profit and distributing it among the memb...

Corporate social responsibility is the managerial obligation to take actions that protect and improve both the welfare of society as a whole and the interests of the organisation. Thus, the paper is an examination of the business advantages of corporate social responsibility practice. The paper is anchored on two theories; stakeholder’s theory, which states that organisations have constituent g...

Business expansions along with number of new companies being engaged in variety of industries aimed at getting bigger market share, underscored the role of corporate governance within the financial sphere. One of the important issues in corporate governance is acquisition. Due to the significant impact of companies in refining and petrochemical sectors on capital market and whole economy, their...

Organizational risk is often defined as a change in the flow of profit, or as a sys-tematic or non-systematic changes in the stock return flow. The risk taking of management is conceptualized as the actual investment decisions that are indictors due to uncertainty results. The purpose of this study is to investigate the effect of financial characteristics on future corporate risk taking behavio...

We estimate the impact of effective profit taxation on the financial leverage of corporations on the basis of a pseudo-panel constructed from corporate tax return micro data for the period 1998-2001, a period which saw the introduction of a major corporate tax reform in Germany. The financial leverage is measured by the ratio of long-term debt to total capital. Endogeneity of the effective corp...

In this paper, a socially responsible supply chain consisting of one supplier and one retailer is proposed. The supplier decides on replenishment cycle multiplier and the retailer invests in corporate social responsibility (CSR) and decides on the order-up-to-level under a periodic review replenishment policy. The retailer’s decisions impact on the supplier’s probability as well as the supply c...