This paper examines how compensation systems impact peer effects and competition in
collocated sales teams. We use department store sales data to show that compensation …

Slack can act as a double‐edged sword. While it can buffer against environmental threats to
help ensure business continuity, slack can also be costly and reduce profitability. In this …

The separation between ownership and control has become common practice over the last
century, in most medium and large firms across the world. Throughout the twentieth century …

In his bookStrategies of Commitment, Nobel Prize winner Thomas Schelling discusses
several examples of the functioning of commitment strategies and their importance …

This study examines two competing views on how financial slack affects firm performance:
resource-based behavioral theory and agency theory. By investigating a large panel data …

We study a model in which a manager can engage in unobservable cost-cutting effort,
possesses private information about firm profits and where shareholders employ stock and …

We consider a principal–agent model to provide a general analysis of how risk affects
incentives of firms who invest in cost-reducing R&D and compete in the product market. We …

Understanding the organization of R&D activities requires the simultaneous consideration of
scientific workers' talent and tastes, companies' organizational choices, and the …

We explore the strategic value of quantity forcing contracts in a manufacturer-retailer
environment under both adverse selection and moral hazard. Manufacturers dealing with …

This paper studies cost-reducing R&D incentives in a principal-agent model with product
market competition. It argues that moral hazard does not necessarily decrease firms' profits …