Successful innovation depends on the management of a firm’s knowledge base. This paper empirically investigates the determinants of knowledge regulation. Using a unique survey dataset, the analysis suggests that R&D managers do not leak knowledge randomly, but rather regulate knowledge consciously. We find that the source and the channel of knowledge inflows impact knowledge regulation. The fin...

We use an innovative survey tool to collect management practice data from over 4,000 medium sized manufacturing firms across Asia, Europe and the US. These measures of managerial practice are strongly associated with firm-level performance (e.g. productivity, profitability and stock market value). Private equity firms are significantly better managed than government, family and privately owned ...

Jiangsu and Zhejiang are of two of China most prosperous and dynamic provinces. This paper first presents a factual account of two empirical phenomena: 1) FDI has played a more substantial role in the economic development of Jiangsu than in Zhejiang, and 2) ownership biases against domestic private firms in Jiangsu were more substantial than in Zhejiang. The paper hypothesizes that there is a c...

This study aims to answer to three different questions. First, whether we could observe the short-term abnormal return anomaly or the long-term underperformance in the IPOs of a small economy. Second, if these anomalies exist, whether they are distinct when ownership categories (private versus state owned) are compared. And third, if these categories show different patterns, i. e., whether priv...

This study explores the equilibrium outcomes in the contexts of quantity-setting and price-setting mixed duopolies with consistent conjectures of both the social welfare maximizing public firm and the relative profit maximizing private firm. Similar to the private duopoly composed of only relative profit maximizing firms, we show that in the mixed duopoly, the equilibrium outcomes in the quanti...

Our analysis examines whether or not there exists a differential impact of ownership between two distinct governance regimes: market-centered (US firms) and bank-centered (Japanese firms). We find that significant owners in the US are often quite effective in carrying out the monitoring function, although the potential to consume private benefits increases as ownership stakes rise. In Japan our...

We analyze environments where firms chose a production technology which, together with random events, determines the final emission level. We consider the coexistence of two alternative technologies. The cost of the adoption of the clean technology and the actual emissions are firms’ private information. The environmental regulation is based on taxes over reported emissions, and on monitoring a...

The "science commons," knowledge that is widely accessible at low or no cost, is a uniquely important input to scientific advance and cumulative technological innovation. It is primarily, although not exclusively, funded by government and nonprofit sources. Much of it is produced at academic research centers, although some academic science is proprietary and some privately funded R&D enters the...

Consider a society in which the production and enforcement of law is entirely private. Individuals contract with rights enforcement firms to protect their rights and arrange for the settlement of legal disputes to which they are a party. Each pair of enforcement firms contracts with an arbitration agency, a private court, to settle disputes between their customers, agreeing to accept and enforc...

This article investigates the use of technology upgrades by incumbent firms in response to potential entry by government firms. Using a dataset of over 3000 US cable TV systems, the article presents evidence consistent with entry deterrence theory. Incumbent cable systems are more likely to upgrade when located in a market with a government-owned potential entrant. However, the same systems are...