One of the most puzzling facts in economics is the firm size-wage effect. After controlling for the observable characteristics of workers (age, gender, education, residence etc.), firms (industry, occupation, work conditions etc.) and negotiation effect (unionization), one still finds that the sheer size of a firm increases the wage, contrary to the one-good one-price doctrine. We provide a sim...

This paper examines the impact of industry knowledge conditions, firm size and corporate governance structures on tangible investment and its financing. Based on a large panel data set of German firms we investigate whether liquidity constraints vary systematically across firms engaged in activities reflecting very different knowledge conditions. In particular, we compare the extent of liquidit...

This paper constructs and estimates a generalized Roy model with human-capital accumulation and moral hazard to control for self-selection by executives across firms and jobs. It uses the estimated model to decompose the firm-size pay gap into five sources, namely: (1) utility from working, (2) divergence in incentives, (3) monitoring, (4) demand, and (5) human-capital accumulation. It finds no...

a r t i c l e i n f o This paper examines the influence of ownership structure on earnings quality of firms listed on the Chinese Stock Exchanges. We empirically test four contemporary earnings quality measures, including volatility of earnings, variability of earnings over cash flows, correlations between accruals and cash flows, and level of discretionary accruals, for 1438 firms listed on Sh...