Despite recognizing the importance of events, researchers have rarely explored the influence of broader societal events on employee experiences and behaviors at work. We integrate perspectives on events and social identities to develop a cross-level theoretical model of the spillover effects of mega-threats, which we define as negative, large-scale, diversity-related episodes that receive significant media attention.
Across the globe, every workday people commute an average of 38 minutes each way, yet surprisingly little research has examined the implications of this daily routine for work-related outcomes. Integrating theories of boundary work, self-control, and work-family conflict, we propose that the commute to work serves as a liminal role transition between home and work roles, prompting employees to engage in boundary management strategies.
We utilize the time period over which banking authorities discussed, adopted, and implemented Basel III to examine the financial reporting and operational decisions firms use to respond to proposed regulation. Our primary finding is that the banks affected by this proposal made strategic financial reporting changes and altered their business models prior to the regulation being enacted.
Organizational, economic, and technology forces are encouraging organizations to experiment with new ways to develop their strategic priorities (Chesbrough & Appleyard, 2007). One such new approach is Open Strategy (OS), an approach that increasingly relies on the use of online digital platforms. OS refers to the process by which an organization’s strategy for the future is developed in a planned or inadvertent manner with more transparency for all stakeholders and/or inclusion of different stakeholders compared to conventional strategy-making processes (Hautz et al., 2017; Mack & Szulanski, 2017; Whittington et al., 2011).
The effectiveness of cancer screening and adherence to cancer screening guidelines can be inhibited by long wait times for screening appointments. We develop a queueing network model of screening for a disease within a population of patients with imperfect adherence to screening guidelines to characterize the relationship between the screening request frequency rate and the wait time for screens. We first use our model to derive the capacity needed by a given system or the population size a given system can serve to guarantee a certain service level.
This paper provides evidence on the determinants and economic outcomes of updates of accounting systems (AS) over a 24-year time-span in a large sample of U.S. hospitals.
We consider a decentralized supply chain consisting of a retailer and a supplier that serves forward-looking consumers in two periods. In each period, the supplier and the retailer dynamically set the wholesale and retail price to maximize their own profits. The consumers are heterogeneous in their evaluations of the product and are strategic in deciding whether and when to buy the product, choosing the option that maximizes their utility, including waiting for a price markdown.
Perceived integrity of managers affects employee attitudes. Yet its impact on employee behavior and organizational performance is unknown. Addressing this gap, we examine the effect of perceived integrity in leadership on both subjective firm performance and objective employee productivity.
We consider the anesthesiologist staff planning problem for operating services departments in large multi-specialty hospitals. In this problem, the planner makes monthly and daily decisions to minimize total costs.
A detailed treatment of aggregation and capital heterogeneity substantially improves the performance of the investment CAPM. Firm-level predicted returns are constructed from firm-level accounting variables and aggregated to the portfolio level to match with portfolio-level stock returns. Working capital forms a separate productive input besides physical capital. The model fits well the value, momentum, investment, and profitability premiums simultaneously and partially explains positive stock-fundamental return correlations, the procyclical and short-term dynamics of the momentum and profitability premiums, as well as the countercyclical and long-term dynamics of the value and investment premiums. However, the model falls short in explaining momentum crashes.
What makes an asset institutional-quality? This paper proposes that one reason is the existing concentration of delegated investors in a market through a liquidity channel.
Does the availability of health insurance for young adults affect entrepreneurial behavior? This paper proposes that policy effects may go beyond the binary, and shape choices around entrepreneurial form, such as incorporation. I use the adoption of 38 dependent coverage mandates in 31 states, passed from 1986 to 2013, and the adoption of a federal mandate in 2010 to analyze the relationship between non-employer provided insurance and entrepreneurial activity.
We examine when anomaly returns occur. We use a powerful database that contains the precise date on which accounting information is first made public. Despite recent findings to the contrary, once timing is considered, anomalies exist in the data.
We examine a brick-and-mortar retailer’s choice of which product to include in a promotional display (e.g., an “endcap” display). The display provides a visibility advantage to both the featured product and its category, but it also has consequences for customer traffic and substitution.
A central idea in the feedback seeking literature is that there should be a positive relationship between self-efficacy and the likelihood of seeking feedback. Yet empirical findings have not always matched this theoretical claim. Departing from current theorizing, we argue that high self-efficacy may sometimes decrease feedback seeking by making people undervalue feedback and that perspective taking is an important factor in determining whether or not this occurs.
We investigate the spatial dependence between commercial and residential mortgage defaults. A new class of observation-driven frailty factor models is introduced to do so. The idea of dynamic parameters embedded in the class of GAS models is utilized to estimate dynamic models of default risk with potentially multiple factors which are driven by stratified grouping of large panels of mortgage loan records. The score dynamics in the models is driven by so-called generalized residuals, and have therefore a fairly intuitive interpretation of ARMA-like dynamics. The proposed models are computationally easy to implement and therefore attractive in big data applications, something that gives them a considerable advantage in comparison to the typical latent factor frailty models proposed in the literature.
This study examines the performance consequences of web personalization (WP), a type of personalization in which web content is personalized and recommendations are offered based on customer preferences. Despite the growing popularity of personalization, there is a dearth of research at the firm level on whether and how web personalization creates shareholder value. We develop and test a conceptual model that proposes that the impact of WP on shareholder value is mediated by (1) cash flow volatility and (2) premium price.
Following 2 decades of discussion, the border adjustment tax (BAT) briefly emerged as part of proposed US corporate tax reform in early 2017. While heavily debated, little empirical evidence exists regarding the BAT. We take advantage of the period during which the BAT was under strong consideration to examine its effects on shareholder value.
Certification by online analysts and early investors can generate excitement among potential token investors, leading to successful initial coin offerings (ICOs). We test the general notion of "wisdom of crowds" using novel data on nearly 3,400 ICOs, including sequential investor subscriptions during token sales.
This monograph provides a structured overview of costing system research that can explain the variation in the characteristics and properties of costing systems found in practice based on firms’ source(s) of their demand for cost information. Costing systems are not developed in a vacuum but are designed to fulfill a purpose. In order to have a meaningful decision on the various demands for cost information, I start in Part 1 by exploring the different techniques firms can use to supply cost information to its managers and employees.
Why do managers act unfairly even when they recognize the significant organizational benefits of treating employees fairly? Prior research has explained this puzzling phenomenon predominantly through an “actor-centric” perspective, proposing that managers’ just behavior is an outcome of their own individual differences.
This article examines at‐the‐market (ATM) equity programs as an additional source of financial flexibility. We find that firms with higher market‐to‐book ratios and greater institutional ownership are more likely to announce an ATM program. Firms using ATM programs are also more likely to issue shares when they have exhausted other viable financing alternatives, have timely investment opportunities and when market conditions are favorable. Finally, we document a significant negative announcement effect around the establishment of an ATM program, though the magnitude of this effect is significantly less negative than that of a comparable SEO.
We investigate how auditor alignment, i.e. parent and subsidiary are audited by auditors from the same audit firm network, affects the quality of the internal information environment of groups and their subsidiaries decision making and performance management processes. We predict that auditor alignment improves internal information quality via better information coordination across the group, and via lower internal information asymmetry between parent and subsidiaries.
This study analyzes whether fair value estimates of fund net asset values (NAVs) produced by private equity managers are accurate and unbiased predictors of future discounted cash flows (DCF). We exploit the fact that private equity funds have finite lives to compare reported NAVs to DCFs based on realized cash flows for 384 venture capital (VC) funds and 195 buyout funds spanning 1988-2016.
Rapid advances in artificial intelligence (AI) and automation technologies have the potential to significantly disrupt labor markets. While AI and automation can augment the productivity of some workers, they can replace the work done by others and will likely transform almost all occupations at least to some degree. Rising automation is happening in a period of growing economic inequality, raising fears of mass technological unemployment and a renewed call for policy efforts to address the consequences of technological change. In this paper we discuss the barriers that inhibit scientists from measuring the effects of AI and automation on the future of work.
This paper aims to advance the use of numerical experiments to investigate issues that surround the design of cost systems. As with laboratory and field experiments, researchers must decide on the independent variables and their levels, the experimental design, and the dependent variables. Options for dependent and independent variables are ample, as are the ways in which we can model the relations among these variables.
We hypothesized that individuals in cultures typified by lower levels of relational mobility would tend to show more attention to the surrounding social and physical context (i.e., holistic vs. analytic thinking) compared with individuals in higher mobility cultural contexts. Six studies provided support for this idea. Studies 1a and 1b showed that differences in relational mobility in cultures as diverse as the U.S., Spain, Israel, Nigeria, and Morocco predicted patterns of dispositional bias as well as holistic (vs. analytic) attention.
We study the foreign externalities of the recent U.S. tax reform, commonly known as the Tax Cuts and Jobs Act (TCJA). Specifically, we examine foreign firms’ stock returns around key tax reform events. We find significant heterogeneity in market responses by country, industry, and firm.
When financially distressed firms have overwhelming debts, a prominent option for survival is to file for Chapter 11 bankruptcy protection. We empirically study the effect of Chrysler’s Chapter 11 bankruptcy filing on the quantity sold by its competitors in the U.S. auto industry.
We study dynamic decision-making under uncertainty when, at each period, a decision-maker implements a solution to a combinatorial optimization problem. The objective coefficient vectors of said problem, which are unobserved prior to implementation, vary from period to period.