This paper studies the empirical relation between corporate social responsibility (CSR) and financial performance in Korea using a sample of 1222 firm-years during 2002—2008. We measure by both an equal-weighted CSR index stakeholder-weighted suggested Akpinar et al. (2008). Corporate is measured return on equity, assets, Tobin’s Q. find positive significant relationship index, but not index. finding robust to alternative model specifications several additional tests, providing evidence...

We present a model of dynamic competition between two firms where gather customer information through first-period purchase. This creates asymmetric in the second period whereby firm knows more about its own past customers than competitor does. examine how ability to offer personalized prices based on affects and profit over periods. When product differentiation is exogenously fixed, leads equilibria one chooses aggressive pricing secure larger market share. also chosen endogenously, there...

We study a model where each competing firm has target segment it full consumer information and can exercise personalized pricing, consumers may engage in identity management to bypass the firm’s attempt price discriminate. In absence of management, more intensifies competition because firms effectively defend their turf through targeted offers, thereby setting low public prices offered nontargeted consumers. But effect is mitigated when are active raises cost serving When have sufficiently...

Microcredit has been shown to be effective in reducing poverty many developing countries. However, less is known about its effect on human capital formation. In this article, we examine the impact of access microcredit children's education and child labor using a new large data set from rural Bangladesh. The results show that household participation program may increase reduce school enrollment. adverse effects are more pronounced for girls than boys. Younger children adversely affected...

We study how a data-rich firm can benefit by unilaterally sharing its customer data with data-poor competitor when the be used for price discrimination. By on segment of market that is more loyal to and keeping competitor’s most itself, induce raise consumers which it does not have data. Such an example fat-cat strategy as softens competition follows sharing. Although consumer surplus decreases result sharing, total increase concedes share competitor, improves quality consumer–firm matching....

Abstract This article studies tech mergers that involve a large volume of consumer data. The merger links the markets for data collection and application through consumption synergy. merger‐specific efficiency gains exist in market due to synergy data‐enabled personalization. Prices fall but generally rise as are extracted away personalized pricing. When is enough, can result monopolization both markets. We discuss policy implications including various remedies.

Multinational enterprises use two types of transfer prices: the tax price to achieve optimal outcomes and incentive provide appropriate incentives offshore managers. The prices are independent if taxable income is assessed using formula apportionment approach. Under separate entity approach, however, they interdependent: both decrease as penalty for noncompliance with arm's length principle increases; decreases increases marginal cost production increases. We also examine case where...

This paper examines the issue of compliance monitoring in agri‐environmental policy when a farmer is risk‐neutral and risk‐averse. The optimal contract model presented here significantly extends generalises results conclusions Choe Fraser (1998). In this environmental agency explicitly chooses accuracy costs as well rewards for farmers. It found that, by modelling being cost‐conscious may or not be higher risk‐averse than farmer. Essentially, faces an explicit trade‐off between incentive...

This article examines the empirical relation between chief executive officer (CEO) turnover and earnings management in K orea using a sample of 403 CEO turnovers 806 non‐turnover control firms during period 2001–2010. We classify into four types depending on whether departure outgoing is peaceful or forced incoming promoted from within recruited outside firm. measure by both discretionary accruals real activities management. also for endogeneity potential selection bias 2 SLS H eckman's...

Abstract Using the 2007 household survey data collected by Transparency International Bangladesh, we examine corruption in education sector Bangladesh. Our main findings are (i) incidence of and amount bribe increase with level red tape, (ii) poorer households, households a less educated head, girls studying school more likely to be victims corruption, (iii) higher social status use informal networks bypass tape or pay and, as result, (iv) is regressive.

ABSTRACT We develop a model of bailout stigma in which accepting signals firm's balance‐sheet weakness and reduces its funding prospects. To avoid stigma, high‐quality firms withdraw from subsequent financing after receiving bailouts or refuse altogether to send favorable signal. The former leads short‐lived stimulation followed by market freeze even worse than if there were no bailout. latter revives the market, albeit with delay, level achievable without any implements constrained optimal...

This paper studies the multinational firm's choice of transfer prices when firm uses separate for tax and managerial incentive purposes, there is penalty non‐compliance with arm's length principle. The optimal price shown to be a weighted average marginal cost plus an adjustment by fraction non‐arm's pricing. Insofar as rates are different in jurisdictions, optimally trades off benefits arbitrage against

In this note the impact of imperfect compliance monitoring on implementation agri‐environmental policy is analysed. A principal‐agent model used to demonstrate how imperfections in process lead higher levels incentive payments ensure compliance. This means that less accurate results social costs from implementation. Technical enhancements accuracy will therefore a reduction costs. an important result with significant implications for design and policy.

We estimate the effect of corporate diversification on firm value using a sample 766 segment-year observations during 2004–2008 for firms listed Australian Stock Exchange as August 2009. In addition to conventionally used measures diversification, we develop five new that explicitly take into account degree which multi-segment firm’s various segments are in related lines business. use three different excess valuation diversification. find our enjoyed significant premium ranges from 12.4% 18%...

This article examines the empirical relation between CEO turnover and earnings management in Korea using a sample of 317 turnovers 634 non-turnover control firms during period 2001-2008. We classify into four types depending on whether departure outgoing is peaceful or forced incoming promoted from within recruited outside firm. measure by both discretionary accruals real activities management. also for potential endogeneity Heckman’s two-stage approach. After controlling corporate financial...

We study internal organization of a firm that comprises CEO and two division managers. The key ingredients our model are externalities among divisions' projects may require coordination effort incentives for the Depending on how decision authority over each project is allocated, we compare various organizational structures including centralization, different forms partial full delegation, hierarchical delegation. identify conditions under which can be Pareto ranked. also discuss optimal...