Review of Industrial Organization 22: 247, 2003.
© 2003 Kluwer Academic Publishers. Printed in the Netherlands.
Industrial Organization Society’s Fifth Annual
Awards: Best Paper/Younger Scholar Award
To CLAUDIO A.G. PIGA
The Industrial Organization Society’s Best Paper/Younger Scholar Award is given for outstanding
research by a younger scholar published in the Review of Industrial Organization during the previous
year (in this instance between August 2001 and July 2002). “Younger” is deﬁned as less than 40 years
of age, or with a Ph.D. awarded in the last 10 years.
A committee of three evaluates the eligible papers, stressing criteria of originality, technical
excellence, quality of exposition, and contribution to understanding of how the industrial economy
functions. This year’s committee consisted of Robert M. Feinberg, John T. Scott and Don Siegel.
The award was presented on April 4, 2003, at the International Industrial Organization Conference,
which was held at Northeastern University.
The committee selected Claudio A. G. Piga for his paper “Debt and Firms’ Relationships: The
Italian Evidence”, which appeared in the May 2002 issue. The award is accompanied by the following
The Industrial Organization Society is pleased to select Claudio A. G. Piga for the award for the
best article by a younger scholar to appear in the Review of Industrial Organization during the past
This is a novel and interesting empirical paper that examines the relationship between strategic
decisions (regarding vertical relationships) and capital structure. With hypotheses motivated by con-
tract theory, the article provides important evidence on the relationship between “group organization”
and debt usage. In particular, the author ﬁnds that Italian ﬁrms selling mainly to other ﬁrms (outside
of their holding company group) are characterized by higher average levels of debt. The results
suggest that group organization limits the incentive to make strategic use of debt. We are pleased to
recognize Professor Piga for the quality of his work.