Is firm behavior mainly driven by its environment or rather the characteristics of managers? We develop a cognitive theory manager fixed effects, where allocation managerial attention determines behavior. show that in complex environments, endogenous exacerbates effects. Small differences expertise then may result dramatically different behavior, as managers devote scarce way amplifies initial ...

This paper investigates the effects of board of director collusion on managerial incentives and firm values. Recent academic research hints at the social network of board of directors as an important conduit for coordinating corporate governance policies, such as managerial pay, and curbing competition. We study a model where managers can exert unobservable cost-cutting effort and investigate t...

In this paper, we examine the real options approach to capital budgeting in the presence of managerial adverse incentives. We show that real options have the potential to be value enhancing or value destroying depending on managerial incentives. We further examine the possibility of using a generic residual income based rule of managerial compensation to induce the proper investment incentives ...

ethics is an essential requirement for a sound and healthy society. it is due to its positive individual, organizational, and social consequences that ethics has always provoked scholars, instructors, and organization managers to try to maintain and improve it. the adaptation of managerial solutions will gradually result in the improvement of trust, commitment, and effort which are all necessar...