Recent theoretical work has shown firms have market power when hiring workers that is independent of the labor market. However, current techniques for measuring market power are unable to separate the firm determinants of market power from the market determinants. This paper proposes a new method for measuring monopsony that yields a firm-specific measurement, which I apply to the Indonesian ma...

Tosi and Gomez-Mejia, (1989) suggest that the challenge of corporate governance is to set up supervisory and incentive alignment mechanisms that alter the risk and effort orientation of agents to align them with the interests of principals. Therefore, the objective of this study is to determine the efficiency of monitoring and incentive contracts given certain characteristics of the firm. That ...

We provide a comprehensive comparison of strategic alliances and acquisitions, tackling the question of whether these transactions are substitutes or complements. We find evidence that the decision to enter a strategic alliance rather than an acquisition is determined by firm specific characteristics representing risk, CEO remuneration and external corporate governance mechanisms. Strategic all...

This paper considers the optimal hiring strategy of a firm that is unable to observe the productive abilities of all its applicants. Whom the firm considers as hireable, will depend crucially on the extent to which the firm can use its wage setting to mirror productivity differences. However, when setting its wages the firm has to consider other factors as well, e.g. turnover, that may make it ...

We study job durations using a multivariate hazard model allowing for workerspecific and firm-specific unobserved determinants. The latter are captured by unobserved heterogeneity terms or random effects, one at the firm level and another at the worker level. This enables us to decompose the variation in job durations into the relative contribution of the worker and the firm. We also allow the ...

This paper provides empirical evidence that firm size, liquidity, and Value-at-Risk (VaR) explain the cross-sectional variation in expected returns, while market beta and total volatility have almost no power to capture the cross-section of expected returns at the firm level. The strong positive relation between average returns and VaR turns out to be robust across different investment horizons...

Access to finance is critical support the growth of small and medium-sized enterprises (SMEs). However, lack access adequate financing one biggest obstacles that SMEs face. This paper analyzed relationship between firm characteristics credit constraints among in Philippines. We determined which are correlated predicted probability being credit-constrained or “quasi-constrained” — i.e., able bor...