This essay surveys the body of research that asks how the efficiency of corporate investment
is influenced by problems of asymmetric information and agency. I organize the material …

The considerable growth in corporate cash holdings around the world has prompted
scholarly interest. Consequently, there is now a large academic literature examining cash …

We model the distortions that internal power struggles can generate in the allocation of
resources between divisions of a diversified firm. The model predicts that if divisions are …

We develop a two-tiered agency model that shows how rent-seeking behavior on the part of
division managers can subvert the workings of an internal capital market. By rent-seeking …

The primary objective of this study is to examine the value implications of cross-border
acquisitions of emerging-market multinationals (EMMs). We examine 433 mergers and …

We document a robust cross‐sectional positive association across industries between a
measure of the economic efficiency of corporate investment and the magnitude of firm …

Using plant‐level data for Brazilian manufacturing firms, this paper provides evidence that
government control over banks leads to significant political influence over the real decisions …

This paper studies the relation between corporate liquidity and diversification. The key
finding is that multidivision firms hold significantly less cash than stand‐alone firms because …

Using recent econometric developments about causal inference, I examine whether
diversification destroys value. I estimate the value effect of diversification by matching …

We develop a profit‐maximizing neoclassical model of optimal firm size and growth across
different industries based on differences in industry fundamentals and firm productivity. In …