Browsing by Autor "Veneta Andonova"

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Beyond Moral Hazard: The Effect of Firm-Level Compensation Strategies on Economic Conflict
(De Gruyter, 2009) Veneta Andonova; Hernando Zuleta
In many countries governments are helpless to prevent appropriation, whatever the degree of protection promised by the law. In this context, we use a simple model where workers can either work peacefully or join a guerrilla movement that expropriates entrepreneurs. We find one low-income, low-wage equilibrium with guerrilla activity and one peaceful, high-income, high-wage equilibrium. We show that the peaceful equilibrium can be reached if entrepreneurs implement standard remedies for the internal principal-agent problem such as efficiency wages.
Judges' Cognition and Market Order
(Federal Reserve Bank of St. Louis) Benito Arruñada; Veneta Andonova
We argue that during the crystallization of common and civil law in the 19th century, the degree of discretion in judicial rulemaking, albeit influenced by the comparative advantages of both legislative and judicial rulemaking, was mainly determined by the anti-market biases of the judiciary. The different degrees of judicial discretion in both legal traditions were thus adapted to different circumstances, mainly the unique, market-friendly, evolutionary transition enjoyed by English common law as opposed to the revolutionary environment of the civil law. On the Continent, constraining judicial discretion was essential for enforcing freedom of contract and establishing a market economy. The long-term confluence of both branches of the Western legal system towards lesser freedom of contract is explained as a consequence of increased perceptions of exogenous risks and changes in the political system. These favored the adoption of sharing solutions that interfered with market-supporting institutions and removed the cognitive advantage of parliaments and political leaders.
The relationship between perceptions of insecurity, social capital and subjective well-being: Empirical evidences from areas of rural conflict in Colombia
(Elsevier BV, 2010) Eduardo Wills Herrera; Luz Elena Orozco; Clemente Forero Pineda; Oscar Pardo; Veneta Andonova
The Value of Strategic Waiting in Colombian M&As 1995-2008
(2014) Veneta Andonova; Yeny E. Rodríguez-Ramos; Iván Darío Sánchez-Manchola
This study offers insights into the behavior of Colombian companies that operated in industries characterized by waves of mergers and acquisitions between 1995 and 2008. The conclusion is that three years after, followers show stronger performance than first movers. Recommendations are offered to managers who plan to expand into the Colombian market via mergers or acquisitions.