We study the problem of a two-firm supply chain in which firms simultaneously choose a capacity before demand is realized. We focus on the role that private information about demand has on firms’ ability to align their capacity decisions. When forecasts are private information, there are at most two equilibria: a complete coordination failure or a monotone equilibrium in which firms earn positi...

Since Berle and Means [(1933). The Modern Corporation and Private Property. New York: Macmillan] raised the issue of separation of ownership and control some 70 years ago, corporate governance remains one of the most popular research topics in disciplines ranging from law and economics to management. With the increasing importance of larger firms in the private sector of developing countries th...

A recent stream of research has focused on tax aggressiveness, the downward management taxable income through planning activities, and analyzed its antecedents consequences, mainly public companies. Only very few studies, however, have been carried out in context private family business investigated whether some firms are more aggressive than others, considering specific features firms, such as...

The rapid rise of an innovative private manufacturing economy in China challenges standard economic explanations of growth, which typically assume the existence of well-defined formal institutions such as property rights and company laws safeguarding investor and creditor interests. We highlight the social structure of cooperation that enables innovative activity in private manufacturing firms ...

The radical political and economic reforms sweeping through former socialist countries during the last decade have opened rich opportunities for privately owned businesses to emerge and develop. Since the market institutions and infrastructures in these countries are largely underdeveloped, private firms in transition economies rely extensively on interfirm partnerships. This raises the questio...

In a series of recent studies, several economic historians (most prominently Richard Sylla) argue that successful economies experience ‘‘financial revolutions’’ before undergoing rapid growth. In the U.S., they suggest Hamilton masterminded the financial revolution by putting the public finance in order and facilitating private banks.MightMatsukata, they continue, have done the same in Japan? J...

Received: 1 October 2012 Revised: 27 December 2013 Accepted: 20 February 2014 Online publication date: 17 April 2014 Abstract State-owned (SO) enterprises are subject to more complex institutional pressures in host countries than private firms. These institutional pressures arise from a weak legitimacy of “state ownership” in some countries, which arises from a combination of ideological confli...

Technological progress is typically a result of trial-and-error research by competing firms. While some research paths lead to the innovation sought, others result in dead ends. Because firms benefit from their competitors working in the wrong direction, they do not reveal their dead-end findings. Time and resources are wasted on projects that other firms have already found to be dead ends. Con...

This paper exploits a survey of manufacturing firms in five transitioning countries to evaluate the factors that affect whether or not information on contractual disputes between firms is disseminated to other market participants. We find that these reputation flows are channeled both through informal communication among firms as well as through third party organizations; in addition, they are ...

environmental protection has become one of the main concerns in developed economies, which is why an increasing degree of commitment in the field is required from all public and private bodies. environmental protection in firms must cease to be a secondary, barely profitable objective, involving the performance of sporadic remedial actions, and become just one more element of their organization...