Empirical evidence showing that foreign affiliates perform better in almost all areas than their domestic counterparts is piling up. Yet, contrary to arguments of the public debate, it is not primarily foreign ownership which accounts for performance gaps between domestic firms and foreign affiliates. Firm-specific assets, firm characteristics, the home country of the parent firms and the trans...

Investors often influence the strategic decisions of their holdings, such as long-term orientation and investments in intangible assets. Investigating IT capability as a strategic asset, we examine the influence of institutional shareholders’ investment horizon and blockholdings on the development of organizational IT capability. We perform a panel data analysis of eleven years of archival data...

Education Vouchers: The Right to Choose or to Own? M. H. Hassani Shalmaani, Ph.D. Using education vouchers is one way of increasing parental access to schools and hence, creating rightful choices for them in regard to schools. Since such rights require governmental cooperation, it is necessary to delineate the boundaries of parental rights in order to clarify if the parents have s...

Article history: Received 24 September 2008 Received in revised form 19 January 2009 Accepted 15 April 2009 Available online 3 May 2009 We study a model in which future financing constraints lead firms to have a preference for investments with shorter payback periods, investments with less risk, and investments that utilize more pledgeable assets. The model also shows how investment distortions...