5/5/2023 — We hypothesize that after a relaxation of short selling constraints, an escalation in short selling activity will heighten incentives for short sellers to accelerate price discovery by revealing their negative information. Consistent with this conjecture, we find that the overall sentiment of media coverage tilts significantly more negative for pilot relative to control firms following exogenous relief of short sale constraints.

• KEYWORD(S):
• accounting

5/1/2023 — Crowdsourcing as a mechanism of open innovation is a popular way for organizations to solicit ideas from external agents. Our research focuses on the relationship between examples in problem statements provided to a crowd and the subsequent number of ideas submitted by the crowd.

• KEYWORD(S):
• marketing
• strategy and entrepreneurship

4/18/2023 — Theories of crowdsourced search suggest that firms should limit the search space from which solutions to the problem may be drawn by constraining the problem definition. In turn, problems that are not or cannot be constrained should be tackled through other means of innovation. We propose that unconstrained problems can be crowdsourced, but firms need to govern the crowds differently.

• KEYWORD(S):
• strategy and entrepreneurship

4/17/2023 — When policymakers implement a disinflation program directed at high inflation, the real dollar value of their country’s stock market index experiences a cumulative abnormal 12-month return of 48 percent in anticipation of the event. In contrast, the average cumulative abnormal 12-month return associated with disinflations directed at moderate inflation is negative 18 percent. The 66-percentage point difference between cumulative abnormal returns, along with descriptive evidence and case studies, suggests that unlike the swift eradication of past high inflations documented by Sargent (1982), the US will not experience a quick, low-cost transition from moderate inflation to the Fed’s two-percent target.

• KEYWORD(S):
• economics
• finance
• inflation

4/13/2023 — Using confidential offer-level data on the US housing market, this paper examines the rounding-off heuristics in the bilateral bargaining process. We demonstrate that home sellers and home buyers follow different rounding-off heuristics. While sellers' list prices cluster more frequently around charm numbers (e.g. 349,999), buyers' offer prices and negotiated final sales prices cluster at salient round numbers.

• KEYWORD(S):
• finance

4/10/2023 — Recent research has documented that industry concentration has increased significantly over the past 25 years, with potentially negative consequences for competition, productivity, and social welfare. Some have suggested that greater corporate tax planning by industry leaders, which can provide them with a cost advantage over their competitors, has contributed to this trend. As a result, policymakers are targeting such tax planning to reduce industry concentration.

• KEYWORD(S):
• accounting

4/6/2023 — Entrepreneurs making decisions under uncertainty are encouraged to evaluate their initial ideas through hypothesis testing, but entrepreneurial approaches vary in their emphasis on ex-ante theory development prior to collecting evidence. In this paper, we examine whether and how entrepreneurs benefit from adopting an evidence-based approach or a theory-and-evidence-based approach to decision-making.

• KEYWORD(S):
• strategy and entrepreneurship

3/14/2023 — In the wake of the COVID-19 pandemic, two large infrastructure-related bills have been enacted. The Infrastructure Investment and Jobs Act (IIJA), signed into law in November 2021, provides funding for a wide range of activities including roads, rail, transit, broadband, water and electrical infrastructure.

3/13/2023 — George Floyd’s murder caused many firms to reveal how exposed they are to racial diversity issues. We examine investor and firm behaviors after this socially significant event to provide evidence on the valuation effects of the exposure and ensuing corporate responses. We develop a text-based measure of a firm’s exposure to racial diversity issues from conference call transcripts and find that, after the murder of George Floyd, firms with diversity exposure experience a stock price decrease of approximately 0.7% around the date of the conference call. Initiatives taken by firms mitigate the negative market reaction.

• KEYWORD(S):
• accounting
• DEI
• machine learning

3/10/2023 — Virginia’s rapid population growth over the past three decades has been uneven, creating demographic winners and losers, and masks several demographic headwinds that will constrain future growth and competitiveness if left unaddressed, including slowing rates of total and foreign-born population growth, white population decline, deaths of despair, and declining labor force participation among prime working age males and females in the state.

• KEYWORD(S):
• disruptive demographics
• economic development policy

3/8/2023 — We quantify the immediate net effect of the Tax Cuts and Jobs Act (TCJA) on the tax burden of corporate profits for public US corporations.

• KEYWORD(S):
• accounting
• global business

3/7/2023 — As individuals seek success, destructive interpersonal clashes can emerge when they believe they can only succeed at the expense of others. Prior work suggests this zero-sum construal of success is more likely occur when people receive negative feedback regarding their achievement. In the present research, we identify another element in the workplace that can strengthen zero-sum beliefs, and not just for those who receive negative feedback, but even for those who receive positive feedback.

• KEYWORD(S):
• organizational behavior

3/7/2023 — How do an organization's task requirements affect the ways in which it reacts to competitors’ strategic investments? This study uses a novel measure of task requirements (Case Mix Index), to test the competitive and spillover effects of prior adoption on a focal organization's timing of adoption, while accounting for the underlying demand-side drivers of adoption.

• KEYWORD(S):
• innovation
• strategy and entrepreneurship

3/1/2023 — We examine firm disclosure choice during the initial public offering (IPO) roadshow presentation to understand the informativeness of a management presentation designed to attract investors. Although firms submit a comprehensive registration filing during the IPO, managers also prepare a roadshow presentation, which is shorter and typically allows managers more autonomy to select the information released and how it is discussed. We find that IPO roadshows have significantly more positive, less negative, and less uncertain language than the SEC filing.

• KEYWORD(S):
• accounting
• machine learning

2/28/2023 — Acquisitions are notoriously difficult to execute successfully. Poor implementation of the post-acquisition integration process is a major source of acquisition value destruction. To surface new solutions for this vexing problem, we leverage the emerging triadic view of M&A activities, which emphasizes the interconnectedness between sellers, acquirers, and the units that are transferred between them.

• KEYWORD(S):
• strategy and entrepreneurship

2/27/2023 — Food ordering and delivery platforms generate online demand for restaurants and deliver food to customers. In return, restaurants pay platforms a commission, typically a percentage of the order amount. Platforms offer partner restaurants the choice of a range of commission rates, rewarding higher commission payments with featured display slots and discounted delivery fees, both of which stimulate demand. Unfortunately, the current environment is grim: platforms scurry to cover delivery costs while restaurants gripe about excessive commissions.

• KEYWORD(S):
• operations

2/24/2023 — Ignoring consideration sets in modeling customer purchase decisions may lead to biased estimation of customer preferences, yet consideration sets are difficult to infer in brick-and-mortar contexts. We show that the challenge of estimating consideration set models in brick-and-mortar contexts can partially be overcome with an emerging source of data: “heatmap data” collected using in-store sensors.

• KEYWORD(S):
• operations

2/17/2023 — Despite encouraging signs, India’s retail market remains largely off-limits to large international retailers like Wal-Mart and Carrefour. Opposition to liberalizing FDI in this sector raises concerns about employment losses, unfair competition resulting in the large-scale exit of incumbent domestic retailers, and infant industry arguments to protect the organized domestic retail sector that is at a nascent stage. Based on international evidence, we suggest that allowing entry by large international retailers into the Indian market may help tackle inflation, especially in food prices.

• KEYWORD(S):
• economics
• finance
• global business
• inflation

2/15/2023 — We study price optimization under the mixture of boundary logit (MBL) model, which was recently introduced in Jagabathula et al. (2020) and Jagabathula and Venkataraman (2022). We show that the pricing problem under the MBL model is hard to solve in the most general case. However, we prove structural results for the general pricing problem and characterize the optimal solution for several special cases, including a setting in which all products are charged the same price, and a setting with two products.

• KEYWORD(S):
• operations

2/9/2023 — This study documents that big bath accounting following CEO turnovers is pervasive worldwide and shows that the extent to which CEOs engage in big bath accounting is associated with the degree of discretion they have available in their respective countries. Our analysis is based on a new country-level measure for managerial discretion derived from a questionnaire survey with more than 500 strategy consultants from 35 countries.

• KEYWORD(S):
• accounting
• global business

2/8/2023 — Sports organizations typically sell tickets for popular elimination style tournaments (e.g., NFL Super Bowl) well in advance of the final games. Fans hesitate to buy these tickets because they are unsure about whether their favorite team will play in those games. As the result the tickets are cornered by agents and scalpers and resold at exorbitant prices once the playing teams are clarified. We demonstrate how consumer forwards and options buffer consumers from uncertainty, enhance league and team profits, and help control scalping.

• KEYWORD(S):
• marketing

2/7/2023 — This paper investigates how bank supervisors’ enforcement decisions and orders (EDOs) influence the allocation of mortgage lending across demographic groups underlying a banks’ borrower base. Specifically, we investigate how banks’ mortgage lending to minority borrowers relative to white borrowers changes following the resolution of severe EDOs.

• KEYWORD(S):
• accounting
• inequality

2/6/2023 — Detaching from work is beneficial because it helps employees recover from work demands. However, we argue that detachment may be a trade-off for employees in organizations with higher (vs. lower) levels of performance pressure. Drawing on social self-preservation theory, we hypothesize that evening detachment leads employees working in higher (vs. lower) performance pressure work contexts to experience increased shame at work the next morning.

• KEYWORD(S):
• organizational behavior

2/5/2023 — Factor analysis is a widely used tool to summarize high dimensional panel data via a small dimensional set of latent factors. Applications, particularly in finance, are often focused on observable factors with an economic interpretation. The objective of this paper is to provide a formal test for the question whether the factor spaces of latent and observable (economic) factors are equal.

• KEYWORD(S):
• economics
• finance

2/2/2023 — Responsive to calls from lawmakers, the USPTO has recently announced a broad set of measures to increase the quality of drug patents ex ante, before they are granted, as a way of in the US. However, there is currently no way to tell which patent applications cover inventions that will lead to FDA-approved drugs, potentially compromising the efficiency and effectiveness of the agency’s efforts. We address these informational deficits predictively and descriptively through an analysis of patents issued in 2005-2015 that cover drugs as identified through their listing in the FDA’s “Orange Book.”

• KEYWORD(S):
• machine learning
• pharmaceutical
• strategy and entrepreneurship

2/2/2023 — Regulating short selling is difficult and controversial. We review the academic literature on short selling regulation and provide insights for future policymakers and academics. We organize the complex history of short selling regulation into three areas: disclosure requirements, securities lending restrictions, and trading restrictions. We identify, analyze and discuss 45 distinct regulations promulgated during the period 1896 through 2021, primarily by reviewing the academic literature associated with each regulation, including a discussion of the data sources employed. In so doing, we provide several insights regarding the effectiveness of regulatory approaches as well as the wider impact on markets.

• KEYWORD(S):
• finance

1/26/2023 — We examine the validity of the underlying assumption that the tax system favors superstar firms, using both forward-looking and backward-looking measures of firms’ tax burdens. Across multiple specifications, we find little empirical support for the idea that superstar firms are tax advantaged.

• KEYWORD(S):
• accounting

1/12/2023 — A daunting tangle of problems defines the global energy space as 2022 winds down. On the one hand, the war in the Ukraine combined with curtailed Russian oil/gas supplies into Europe has reminded many that unfriendly energy suppliers can also deliver inflation and hardship to their customers. On another side, efforts to increase oil/gas supplies both in Europe and globally, face stout resistance to anything that might further entrench hydrocarbons into national economies. Inflation is prompting monetary policies to tighten even as fiscal indiscipline continues via historically high government deficit spending. Concerns over climate change remain an article of faith among leaders of many countries. Other voices decry the folly of calls to suppress oil/gas production when greener alternatives are not ready to replace them. Electorates seem both confused and restless. The risk that they vote in leaders less insistent on decarbonizing economies is palpable.

• KEYWORD(S):
• energy
• esg
• sustainability

1/12/2023 — Physicians spend more than 5 hours a day working on Electronic Health Record (EHR) systems and more than an hour doing EHR tasks after the end of the workday. In this paper, we investigate how physicians' workflow decisions on when to perform EHR tasks affect: (1) total time on EHR and (2) time spent after work.

• KEYWORD(S):
• healthcare
• operations

1/7/2023 — Increased consumer demand for healthier product options and looming regulation have prompted many consumer goods brands to adjust the amount of sugar content in their product lines, including adding products with reduced sugar content or smaller package sizes. Even as brands adopt such practices, little guidance exists for how they should do so to protect or enhance their brand performance. This paper studies whether and when sugar reduction strategies affect sales.

• KEYWORD(S):
• marketing
• retail

1/1/2023 — Given that mask-wearing proved to be an important tool to slow the spread of infection during the COVID-19 pandemic, investigating the psychological and cultural factors that influence norms for mask wearing across cultures is exceptionally important. One factor that may influence mask wearing behavior is the degree to which people believe masks potentially impair emotion recognition.

• KEYWORD(S):
• covid-19
• organizational behavior

12/31/2022 — Leaders play a critical role in creating the ethics agenda in organizations. Their communications, decisions, and behaviors influence employees to act ethically or unethically to accomplish organizational goals. To be sure, various reviews within the behavioral ethics literature have highlighted the crucial role that ethical leadership plays in gearing organizations and employees ethically. Yet, numerous documented ethical failings in organizations have evidenced the impact of unethical leadership—where leaders’ unethical conduct or influence on employees promotes unethicality within organizations and generates harmful consequences.

• KEYWORD(S):
• ethics
• organizational behavior

12/27/2022 — Teams often need to adapt to planned discontinuous task change or fundamental alteration of tasks, tools, and work systems. Although team adaptation theories have made substantive progress in explaining how teams can respond to change, they have not adequately considered the unique impact that discontinuous task change can have on teams. Such change can render not only collective but also individual task capabilities obsolete and necessitate a multilevel task relearning process. Drawing on the team compilation model, we suggest that adaptation to discontinuous task change is akin to team (re)development.

• KEYWORD(S):
• equity
• organizational behavior

12/27/2022 — This study examines whether the disclosure of critical audit matters (CAMs) in the expanded audit report in China is associated with an increase in audited financial statement quality. Specifically, we predict and find that timeliness of goodwill impairment by Chinese listed firms increased after the disclosure of CAMs related to goodwill.

• KEYWORD(S):
• accounting
• financial reporting

12/25/2022 — In this paper, we develop new methods for analyzing high-dimensional tensor datasets. A tensor factor model describes a high-dimensional dataset as a sum of a low-rank component and an idiosyncratic noise, generalizing traditional factor models for panel data. We propose an estimation algorithm, called tensor principal component analysis (PCA), which generalizes the traditional PCA applicable to panel data.

• KEYWORD(S):
• economics
• finance

12/21/2022 — Fueled by the widespread adoption of algorithms and artificial intelligence (AI), the use of chatbots has become increasingly popular in various business contexts. In this paper, we study how to effectively and appropriately use chatbots in logistics, particularly in dispatching freights automatically.

• KEYWORD(S):
• ai
• innovation
• operations

12/12/2022 — As major health systems continue to merge, one of the main questions for commentators and researchers concerns the somewhat vague idea of community benefit. The Atrium Health–Advocate merger is set to provide approximately $5 billion in annual community benefit, targeted to aid vulnerable communities and individuals. Community benefit can be understood as any action, investment or program provided by a tax-exempt hospital or health system that promotes the health and wellness of the community they serve. In addition to community benefit, Advocate Health described a $2 billion pledge to disrupt the root causes of health inequities across the rural and urban communities it serves.

• KEYWORD(S):
• DEI
• healthcare

12/11/2022 — We study competition and collaboration between a bank and a shadow bank that lend in the same market plagued by adverse selection. The bank has cheaper funding, whereas the shadow bank is endowed with a better screening technology. Our innovation is to allow the bank to lend to the shadow bank, i.e., to finance its competitors.

• KEYWORD(S):
• finance
• innovation

12/8/2022 — With growing prominence of Diversity, Equity, and Inclusion (DEI) issues, we witness enhanced scrutiny of the public stance and statements of organizational actors. For example, two such statements by Tucker Carlson, known for his primetime show on Fox News, one on immigration (2018) and the other on the Black Lives Matter (2020) movement, pushed nongovernmental organizations, such as Media Matters, to sociopolitical activism by putting pressures on advertisers to boycott the show. This mingling of DEI, sociopolitical activism, and associated economic effects raises a critical research question: what is the economic consequence of DEI stances that arouse sociopolitical activism and what are the underlying mechanisms for the economic consequences?

• KEYWORD(S):
• marketing

12/1/2022 — We examine the effects of leader prevention focus on the leader’s own behavior, in the form of the harmful overruling of good ideas by their follower team, and on the team’s collective behaviors, processes, and performance. We argue that when leaders adopt a prevention mindset, it can have costly effects on team outcomes.

• KEYWORD(S):
• organizational behavior

11/22/2022 — assistance in the immediate aftermath of this extreme weather event, we document the role net migration played in recent population growth—a crucial issue in climate change policy deliberations—and outline creative strategies and investments Florida officials will have to leverage to both rebuild and create resilient communities with reputational equity that remain attractive to newcomers as well as long term residents moving forward.

• KEYWORD(S):
• demographics
• migration

11/22/2022 — Hurricane Ian destroyed property and disrupted livelihoods in some of Florida’s largest and most rapidly growing coastal and inland counties.

• KEYWORD(S):
• economic development policy

10/25/2022 — COVID hit North Carolina hard, with 3.1 million cases so far and over 26,000 deaths. Low-income communities in North Carolina were especially hard hit, with higher rates of COVID infections and deaths, sudden loss of jobs with little buffer, disruption of families and communities. In this paper, we conduct a quantitative assessment of COVID-19’s impact on low-income North Carolinians and specifically on a subset of lower income North Carolina counties that are served by the North Carolina Community Action Association (NCCAA).

• KEYWORD(S):
• covid-19
• demographics
• north carolina

10/20/2022 — Global risk and risk aversion shocks have distinct distributional impacts on emerging market capital flows and returns. In particular, we find salient consequences of these different global shocks for tail risk in emerging markets. Open-end mutual fund trading provides a key mechanism linking shocks facing global investors to extreme capital flow and return realizations.

• KEYWORD(S):
• emerging markets
• finance

10/17/2022 — Reliably detecting insider trading is a major impediment to both research and regulatory practice. Using account-level transaction data, we propose a novel approach. Specifically, after extracting several key empirical features of typical insider trading cases from existing regulatory actions, we then employ a machine learning methodology to identify suspicious insiders across our full sample.

• KEYWORD(S):
• finance
• fintech
• machine learning

9/28/2022 — As a magnet for both population and employment growth, North Carolina has a propitious opportunity to create an inclusive and equitable entrepreneurial and small business ecosystem to support the state’s newfound prosperity.

• KEYWORD(S):
• DEI
• demographics
• minority and women owned businesses
• small business
• social entrepreneurship

9/28/2022 — The unprecedented increase in non-bank financial intermediation, particularly open-end mutual funds and ETFs, over the last two decades, accounts for nearly half of external financing flows to emerging markets exceeding cross-border lending by global banks.

• KEYWORD(S):
• emerging markets
• finance

9/21/2022 — First, we address the relationship between ownership and employees’ labor outcomes. Second, we present an overview of the literature studying the relationship between capital structure and labor markets, including the implications of financial distress. Third, we connect labor with the fast-growing literature on inequality within firms and investments in technology adoption.

• KEYWORD(S):
• finance
• labor

9/16/2022 — Research suggests that women negotiators tend to obtain worse outcomes than men; however, we argue this finding does not apply to all women. Integrating research on social hierarchies, gender in negotiations, and intersectional stereotype content, we develop a theoretical framework that explains the interactive effect of race and gender on offers and outcomes received in distributive negotiations.

• KEYWORD(S):
• diversity
• gender

8/26/2022 — Nonwage benefits have become increasingly important and now represent 30% of total compensation (BLS, 2021). Using administrative data on health insurance, retirement, and leave benefits, we find dramatically lower within-firm variation in benefits than in wages. We also document sharply higher between-firm variation in nonwage benefits, compared to wages. We argue that this pattern can be a consequence of nondiscrimination regulations and the high administrative burden of managing too many or complex plans