Providing solutions to critical economic issues facing the Trump Administration is the focus of a new report from the Frank Hawkins Kenan Institute of Private Enterprise at the University of North Carolina Kenan-Flagler Business School.
This paper examines the relation between tax enforcement and financial reporting quality. The government, due to its tax claim on firm profits, is de facto the largest minority shareholder in almost all corporations. Therefore, the government, like other shareholders, has an interest in the accurate reporting of (taxable) income and preventing insiders from siphoning corporate funds to obtain private benefits.
This paper studies an optimal procurement mechanism for a newsvendor-like problem where the buyer's (newsvendor's) purchase price of the supplies is not fixed, but determined through interaction with candidate suppliers. The buyer has priors on the suppliers' costs but does not know their costs exactly. Recent literature has shown how the buyer can implement the optimal procurement mechanism by announcing a revenue function (specifying a payment for each quantity the buyer may purchase), then auctioning off the supply contract with the specified revenue function.
This paper studies an upstream supplier who quotes prices for a key component to multiple sellers that compete for an end-buyer's indivisible contract. At most one of the supplier's quotes may result in downstream contracting and hence produce revenue for her.
Employee cynicism is on the rise, and thus is increasingly part of the social fabric in modern workplaces. In this paper, we investigate whether interactions with cynical others may produce undesirable effects on employee energy.
Yield curve fluctuations across different currencies are highly correlated. This paper investigates this phenomenon by exploring the channels through which macroeconomic shocks are transmitted across borders. Macroeconomic shocks affect current and expected future short-term rates as central banks react to changing economic environments. Investors could also respond to these shocks by altering their required compensation for risk. Macroeconomic shocks thus influence bond yields both through a policy channel and through a risk compensation channel.
Relative performance is central to investment management and yet relative performance securities do not trade directly. Complex trading strategies must be devised to capture relative gains. This paper introduces a suite of relative performance indexes and index derivatives that offer new and attractive payoff structures. We illustrate a variety of ways in which the products can provide a more efficient and cost-effective means of realizing investment objectives than can traditional futures and options markets.
This paper presents an analysis of data from a company that offers forwards in a sports ticket market. Multiple models that account for fan heterogeneity are presented to capture forward purchase and resale behaviors.
Join experts from Wells Fargo, First Citizens Bank, UNC Kenan-Flagler Business School and the Kenan Institute of Private Enterprise for a discussion on the North Carolina CEO Forum’s launch of a new framework to aggregate non-standard, real-time data to guide policy and business next steps. Join Tuesday, July 7, at 11 a.m. EDT.
I have yet to decline an opportunity to ride some of my favorite hobby horses in managerial accounting research, so the invitation by Ranjani Krishnan to participate in the Journal of Management Accounting Research's 25th Anniversary Panel at the 2014 Management Accounting Section Midyear Meeting in Orlando was very welcome. The following summarizes my thoughts expressed during the panel. I hope to stir the pot and perhaps get management accounting researchers to think somewhat differently after reading this piece about where we are as a field and where we need to be going to be successful in the next 25 years.
Cisco Chairman & CEO Chuck Robbins's conversation with UNC Kenan-Flagler Business School Dean Doug Shackelford on April 25 was highlighted in a Triangle Business Journal article. Robbins talked candidly about leadership lessons, geopolitical issues and Triangle accolades.
Kenan Institute Executive Director and Institute for Private Capital Research Director Greg Brown spoke with Wall Street Journal Pro columnist Luis Garcia about what he and other industry observers have noted about investors' interest in the smoothness of private equity returns. Among other insights, Brown offered, “Private equity funds don’t like to mark things up and they don’t like to mark them down. So, when the market goes down, they look better than they should. And when the market goes up, they look worse than they should.”
A recent research brief by Kenan Institute Executive Director Greg Brown, Director of Research Services Ashley Brown and Shai Bernstein of the Stanford Graduate School of Business on the value of immigrant entrepreneurs to the U.S. economy has been featured in a Triangle Business Journal article. The brief cites a growing body of academic literature demonstrating that high-skilled immigrants provide a range of long-lasting and material benefits to the U.S. economy through entrepreneurship and innovation.
Wall Street Journal Pro columnist Luis Garcia highlighted the newly announced Private Equity Research Consortium and Burgiss data partnership and how it will reshape the debate surrounding private equity.
Our Stakeholder Capitalism Grand Challenge Final Report, written by Executive Director Greg Brown and Chief Economist Gerald Cohen, has been published in the Spring 2023 issue of the Journal of Applied Corporate Finance.
UNC’s Kenan Institute of Private Enterprise and the Duke University Innovation and Entrepreneurship (I&E) initiative have embarked on a joint initiative to build a data repository to facilitate empirical research in entrepreneurship.
Because current earnings predict future financial performance, the stock market reacts strongly to earnings announcements. How rapidly and in what manner information about marketing actions and strategies is accounted for in the stock valuation is less clear.
We show that equity volatility serves as a determinant of future Treasury term-structure volatility over the recent October 1997 to June 2013 period. We find that equity volatility contains incrementally reliable information for the subsequent volatility of: (1) 10-year and 30-year bond futures returns, (2) the term-structure's level, and (3) the term-structure's slope.
We use construal level theory to investigate how the way employees construe where work occurs—defined as work context construal—influences perceptions of harm and the ethical framing of risk-mitigating behaviors. We hypothesize that high-level (abstract) work context construals (vs. low-level, concrete ones) reduce perceptions of potential harm which, in turn, leads to framing risk-mitigating behaviors as less of an ethical obligation.
Research exploring investor reactions to sustainability has substantial empirical limitations, which we address with a large‐scale longitudinal financial event study of the first global sustainability index, DJSI World. The study highlights the importance of careful analysis and longitudinal global samples in making inferences about the financial effects of social performance.