In the increasingly turbulent environment facing business the strategic management of the firm has become more predominate. However to date, the linkage between strategic management and financial management of the firm has largely not been explored. This research utilizes two different methods of analysis to confirm the linkage between capital structure and strategic posture of the firm. Specif...

Previous work shows that reputation results may fail in repeated games with long-run players with equal discount factors. We restrict attention to stage games where two players, with equal discount factors, move sequentially. A pure Stackelberg action is assumed to exist. One and two sided reputation results are provided. If one of the players is a Stackelberg type with positive probability, th...

A large body of recent research, beginning with Bansal-Yaron (2004) has hypothesized long-run risk in consumption, in conjunction with Epstein-Zin preferences, as an explanation for the joint behavior of asset prices and economic aggregates. Finding direct evidence of this risk has proved to be challenge. This paper argues that there is strong evidence for productivity growth as a source of lon...

Feedback scores in an online marketplace have risen sharply over time, leading to substantial top-censoring. Some of the increase is explained by more satisfied raters, but at least 35-45% is attributable to raters applying lower standards. We show that this “reputation inflation” is the equilibrium outcome of a model in which (a) inferences made by future trading partners determine what consti...