Francesco Bova

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Gray marketing, the selling of branded goods outside of manufacturer-authorized channels, is a factor in many industries. Using a model of differentiated Cournot competition, we analyze how gray markets affect the strategy used to enter low-priced foreign markets. In particular, we examine how much autonomy a firm should give its foreign subsidiary. When(More)
Evidence suggests that managers have an incentive to keep information opaque with the market when negotiating with non-manager employees who can extract above-market rents from the firm. We provide empirical evidence which suggests that employee ownership mitigates this incentive. Using a matched sample design and employing a rich set of proxies for(More)
The practice of compensating executives with equity-based pay has come under recent scrutiny due to concerns that it induces excessive risk-taking. In this study, we assess the impact of stock-based pay for non-executive employees on corporate risk-taking. We cite evidence that granting an equity stake to non-executive employees increases both their level(More)
We investigate the persistence of year-over-year changes in the components of operating profit. Using industry-level data, we find that changes in the volume of output exhibit a more persistent effect on profitability than changes in output prices, labor cost, labor productivity, intermediate input cost, and intermediate input productivity. Furthermore, we(More)
This study investigates the information content of variation analysis—that is, analysis of year-over-year changes in the components of operating profit. Using industrylevel data, we find that the effects on profitability of changes in the prices of output products and costs of intermediate inputs are more persistent than the effects of changes in output(More)
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