We examine the role of general counsel (GC) in firms' financial reporting quality. GCs have a broad oversight role within the firm, including keeping the firm in compliance with laws and regulations and dealing with potential violations with respect to financial reporting. Several high-profile U.S. Securities and Exchange Commission (SEC) investigations have resulted in lawsuits or indictments against GCs for perpetrating financial fraud and caused many to ask: where were the gatekeepers?
Hart (2011) argues that the Aumann and Serrano (2008) and Foster and Hart (2009) measures of riskiness have an objective and universal appeal with respect to a subset of expected utility preferences, UH. We show that mean-riskiness decision-making criteria using either measure violate expected utility and are generally inconsistent with optimal portfolio choices made by investors with preferences in UH.
The spatial diffusion and adoption of rDNA methods, Regional Studies. The 1980 patent granted to Stanley Cohen and Herbert Boyer for their development of rDNA technology played a critical role in the establishment of the modern biotechnology industry. From the birth of this general-purpose technology in the San Francisco Bay area, rDNA-related knowledge diffused across sectors and regions of the US economy.
We study the role of information in asset pricing models with long-run cash flow risk. When investors can distinguish short- from long-run consumption risks (full information), the model generates a sizable equity risk premium only if the equity term structure slopes up, contrary to the data.
Brick-and-Mortar (B&M) retailers must enhance the customer in-store experience to better compete with online retailers. Fitting rooms in B&M stores play a critical role in the customer experience as a venue to experience products and examine alternatives. High traffic in fitting rooms, however, obstructs the customer's ability to choose a product. In this paper, we (1) examine the impact of fitting-room traffic on store performance using archival data, (2) identify phantom stockouts as a plausible mechanism for this impact, and (3) provide a potential solution and quantify the magnitude of its impact using two field experiments.
This paper documents macroeconomic forecasting during the global financial crisis by two key central banks: the European Central Bank and the Federal Reserve Bank of New York.
Today's marketing environment is characterized by a surge in multichannel shopping and ever more choice in advertising channels. This requires firms to understand how both digital and traditional advertising drive sales within the same channel (e.g., digital advertising affecting online sales) and across channels (e.g., digital advertising affecting offline sales).
Beginning with Anderson, Banker, and Janakiraman (2003), a rapidly growing literature attributes the short-run asymmetric cost response to activity changes (i.e., sticky costs) as resulting from short-run managerial choices. In this paper, we are agnostic on the theory of sticky costs. Rather, we focus on empirical tests of cost stickiness.
Conventional wisdom dictates that convenience goods should be distributed as intensively as possible. Still, exclusivity arrangements are rapidly gaining way in grocery retailing.
Often the story of successful places is predicated on the story of an individual who was instrumental in creating institutions and making connections that were transformative for a local economy. Certainly this is the case for Silicon Valley in California and Fred Terman, the Dean of Engineering at Stanford University, USA, who offered his garage to his students, Hewlett and Packard, and encouraged other start-ups. Or George Kozmetsky, the founder of Teledyne, who created the Institute for Innovation, Creativity and Capital (IC2) and mentored over 260 local computer companies in Austin, Texas. Any reading of the lives of these individuals highlights their connection to community and motivations beyond making profits.