This study predicts cross-sectional investment (asset-normalized capital expenditures) innovations within the United States, Canada, Great Britain, (mainland) Europe, and Japan. We find that lagged stock returns are the most important cross-sectional predictors of investment increases – except in mainland Europe. American firms tend to react more than Japanese firms but less than Canadian and B...

This study examines whether firms issue capital expenditure forecasts as a commitment to not engage in expropriation of lenders through opportunistic investment activities. We find that firms with higher leverage and lower credit quality are more likely to issue capital expenditure forecasts and deviate less from the forecasts. Furthermore, for firms that issue capital expenditure forecasts, lo...

despite many researchers conducted on electronic commerce, few studies have been performed in the field of internet businesses (ibs) with no up-to-date and applicable law. as a result, using library and field study, in one section we state the general rules and regulations governing all ibs, and in the other section we survey appropriative rules and regulations governing every model of ib. prov...

Although knowledge sharing has been widely treated as the important factor for the success of an organization, relatively little work on exploring how to promote employees’ knowledge sharing has been done in the Chinese context. Due to the unique cultural background, attitudes, and values of the Chinese people, it is likely that the lessons gained from knowledge management practices in develope...

We present a tractable, static, general equilibrium model with multiple sectors in which firms offer workers incentive contracts and simultaneously raise capital in stock markets. Workers optimally invest in the stock market and at the same time hedge labor income risk. Firms rationally take agents’ portfolio decisions into account. In equilibrium, the cost of capital of each sector is endogeno...

Young adults observe wage rates, interest rates, and child mortality and decide about savings and the quantity and quality of their children. Expenditure on child quality causes human capital accumulation as an external effect. If mortality is high parents prefer to have many children and spend only essential rearing effort. Without human capital accumulation the economy may stabilize in an equ...

The response of business capital to user costs is central to economic evaluations of tax and monetary policies. Despite intensive research effort though, no consensus about the size of this elasticity has been achieved. The divergence in prior estimates may arise because previous studies have neglected cointegration among capital, its user costs, and sales. Using German firm-level panel data, t...

This paper constructs and estimates a generalized Roy model with human-capital accumulation and moral hazard to control for self-selection by executives across firms and jobs. It uses the estimated model to decompose the firm-size pay gap into five sources, namely: (1) utility from working, (2) divergence in incentives, (3) monitoring, (4) demand, and (5) human-capital accumulation. It finds no...

Our paper focuses on how the relationship between corporate strategy and securities analyst activity may yield capital markets which discourage uniqueness in strategy. We argue that corporate strategy choices influence not only the expected cash flows of the firm, which form the fundamental basis for the firm’s valuation by capital markets, but also the amount of effort exerted by those who eng...