Does Short Selling Discipline Managerial Empire Building?

Managerial Empire Building and Firm Disclosure

This study tests the agency cost hypothesis in the context of geographic earnings disclosures. The agency cost hypothesis predicts that managers, when not monitored by shareholders, will make self-maximizing decisions which may not necessarily be in the best interest of shareholders. These decisions include aggressively growing the firm, which reduces profitability and destroys firm value. Geog...

Empires and Empire-Building City-States

Residual Income, Depreciation, and Empire Building

AI Wall Building in Empire Earth II

Real-Time Strategy games are among the most popular genres of commercial PC games, and also have widely applicable analogs in the field of “Serious Games” such as military simulations, city planning, and other forms of simulation involving multi-agent coordination and an underlying economy. One of the core tasks in playing a traditional Real-Time Strategy game is building a base in an effective...

Short-Selling Attacks and Creditor Runs

This paper investigates the mechanism through which short selling of a bank’s stocks can trigger the failure of the bank. In the model, creditors, who learn information from stock prices, will grow increasingly unsure about the bank’s true fundamentals in facing noisier stock prices; thus a run on the bank is more likely because of creditors’ concave payo¤. Understanding this, speculators condu...