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.
In evaluating suppliers in complex purchasing decisions involving customized solutions, purchasing managers must judge the capabilities suppliers have to provide the solutions, a judgment that often includes considerable uncertainty.
It is common wisdom that practice makes perfect. And, in fact, we find evidence that when given a choice between practicing a task and reflecting on their previously accumulated practice, most people opt for the former. We argue in this paper that this preference is misinformed. Using evidence gathered in ten experimental studies (N = 4,340) conducted across different environments, geographies, and populations, we provide a rich understanding of the conditions under which the marginal benefit of reflecting on previously accumulated experience is superior to the marginal benefit of accumulating additional experience.
Inspired by recent discussions of the systematic costs that external rankings impose on academic institutions, and the undeniable shifts in the landscape of institutional data, a concerted and pragmatic re-evaluation of ranking efforts has begun. In this study, multiple administrators and researchers representing both public and private institutions across the United States weigh in on these issues.
This article examines the consequences of accounting policy choices for individual banks' downside tail risk, for the codependence of such risk among banks, and for regulatory forbearance, or the decision by a regulator not to intervene.
We present a novel source of disagreement grounded in decision theory: ambiguity aversion. We show that ambiguity aversion generates endogenous disagreement between a firm's insider and outside shareholders, creating a new rationale for corporate governance systems.
After careful consideration, we have decided to cancel this event. Given the continued uncertainty of the COVID-19 situation, the status of University operations at this time, and the national impacts on travel, we're confident this is the right decision. If you have any questions regarding this event, please contact the event administrator, Kim Allen via email at kim_allen@kenan-flagler.unc.edu.
After careful consideration, we have decided to cancel this event. Given the continued uncertainty of the COVID-19 situation, the status of University operations at this time, and the national impacts on travel, we're confident this is the right decision. If you have any questions regarding this event, please contact the event administrator, Kim Allen via email at Kim_Allen@kenan-flagler.unc.edu.
After careful consideration, we have decided to cancel this event. Given the continued uncertainty of the COVID-19 situation, the status of University operations at this time, and the national impacts on travel, we're confident this is the right decision. If you have any questions regarding this event, please contact the event administrator, Kim Allen via email at kim_allen@kenan-flagler.unc.edu.
After careful consideration, we have decided to cancel this event. Given the continued uncertainty of the COVID-19 situation, the status of University operations at this time, and the national impacts on travel, we're confident this is the right decision. If you have any questions regarding this event, please contact the event administrator, Kim Allen via email at Kim_Allen@kenan-flagler.unc.edu.
Each month Launch Chapel Hill and the UNC Entrepreneurship Center host fireside chats with a different theme. These chats showcase a broad range of entrepreneurs at various stages of their venture evolution. Featured entrepreneurs will discuss their journey: the good, the bad and the ugly. The first of the spring series will be on January 27 and will feature Eric Happel, who works on Nike's Global Partners Management and Strategy team. Join us as Eric describes his decision to leave Nike for a startup, his experience building a startup and then his return to Nike with his newfound knowledge and skills.
Join us for the Kenan Institute’s monthly virtual press briefing at 9 a.m. EDT this Friday, July 7, as institute Chief Economist Gerald Cohen offers his insights on the labor market and the decision facing the Federal Reserve.
On October 14, 2016, the Frank Hawkins Kenan Institute of Private Enterprise at the University of North Carolina Kenan-Flagler Business School hosted a conference titled What’s Next, America. Convened fewer than four weeks prior to the presidential election, the objective of the forum was to allow influential business leaders, academics and policy makers to examine issues critical to the U.S. economy now and in the future. The conference offered actionable solutions to the most important economic issues facing the next administration.
The 2017 Workshop on North Carolina Manufacturing Data Science targets a critical gap in the emerging digital manufacturing ecosystem – achieving data-driven improvements in manufacturing processes to realize broader benefits across the factory and enterprise. It will bring together personnel from North Carolina industry, state government, University of North Carolina (UNC) General Administration, and UNC system universities to discuss current capabilities and future needs for widespread implementation.
The North Carolina Community College System is faced with a major dilemma: how to reduce the time to degree and increase the community colleges’ success or graduation rates, which system-wide now stands at 30% in four years. This research was designed to gain qualitative insights from a sample of recent graduates, that is, students who managed to graduate in four or fewer years, on critical success factors. From the standpoint of strategy development, we assert that building on success may be more productive than focusing on deficits in improving community college completion rates.
While much research indicates that organizational processes are learned from experiences, surprisingly little is known about what is actually learned. Using a novel method to measure explicit learning, we track the learned content of six technology-based ventures from three diverse countries as they internationalize. The emergent theoretical framework indicates that firms learn heuristics. These heuristics have a common structure centered on opportunity capture and are learned in a specific developmental order. This results in a deliberately small, yet increasingly strategic, portfolio of heuristics. Broadly, we contribute to the psychological foundations of strategy by highlighting the rationality of heuristics as strategy, capability creation as the cognitive transition from novice to expert heuristics, and simplification cycling as a critical dynamic capability for sustaining competitive advantage.
A replication study assesses whether the results of a particular prior study can be reproduced, including in new contexts with different data. Replication studies are critical for building a cumulative body of research knowledge.
Academics, politicians, and journalists are often highly critical of U.S. firms for holding too much cash. Cash holdings are stockpiled free-cash flow and incur substantial opportunity costs from the perspectives of economics. However, behavioral theory highlights the benefits of cash holdings as fungible slack resources facilitating adaptive advantages.
Consider two buyers facing uncertain demands who need to purchase a common critical component from a powerful sole-source supplier. If the two buyers pool their demands and purchase from the supplier as a single entity, will they necessarily earn higher profits than purchasing separately?
We examine realized spreads and price impact in clock and trade time following each trade in all common stocks from 2010 to 2017. The term structure of realized spreads (price impact) is sharply downward (upward) sloping, implying that (a) market maker profitability is sensitive to speed, and (b) the choice of the horizon of measurement is critical when drawing inferences from spread decompositions.