Personnel economics has put forward conflicting arguments concerning the impact of increased wage dispersion within a firm on the productivity of its workers. Besides giving more incentives, bigger wage differentials might also give rise to less cooperation and more politicking amongst workers resulting in worse outcomes. We try to shed light on these issues using panel data for Austrian firms....

Tosi and Gomez-Mejia, (1989) suggest that the challenge of corporate governance is to set up supervisory and incentive alignment mechanisms that alter the risk and effort orientation of agents to align them with the interests of principals. Therefore, the objective of this study is to determine the efficiency of monitoring and incentive contracts given certain characteristics of the firm. That ...

Economists have long suspected that firm-to-firm relationships might increase price rigidity due to the use of explicit or implicit fixed-price contracts. Using confidential, transaction-level import data from the U.S. Census, I study the pass-through of exchange rate changes and show that prices are in fact substantially more responsive to cost shocks in older versus newly formed relationships...

Recent studies show that the likelihood of survival differs significantly across firms. Both firm and industry characteristics are hypothesized to account for this heterogenity. Using a longitudinal database of manufacturing firms we investigate whether firm or industry characteristics dominate. Our evidence suggests that both firmand industryspecific characteristics shape new-firm survival dur...

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development of technological capability is one of the effective methods for promoting the firm competitive performance. transfer of suitable technology help the firm to make a strong position in its industry faster than using in-house r&d.; successfulness of a firm based on technology transfer process can be measured with different scales such as measurement of firm competitive performance thro...

I develop a model of firm-to-firm search and matching to show that the impact falling trade costs on firm sourcing decisions consumer welfare depends relative size externalities in domestic international markets. These can be positive if firms share information about potential matches, or negative market is congested. Using unique transaction-level data from Uganda, document empirical evidence ...

Performance appraisal is a process which help shareholders make informed and optimal investment decisions. In recent decades, a long stream of research has devoted particular attention to the importance and impact of financial decisions on firm performance and firm value. The present study thus is primarily concerned with investigating the association between free cash flow and institutional ow...