Although subsidiary disclosures in firms’ filings with the Securities and Exchanges Commission (SEC; Exhibit 21) represent the most granular required public disclosure of a firm's geographic footprint, little is understood about the quality of the disclosure, and anecdotal evidence suggests firms may not fully comply with the disclosure requirements. We use data provided by multinational firms to the Internal Revenue Service regarding their foreign subsidiary locations to explore the accuracy of public subsidiary disclosures on Exhibit 21 of Form 10‐K per SEC rules.
This paper investigates the extent to which the expiration of a temporary tax law makes corporate earnings harder to predict and understand. Examining evidence from eight separate expirations of the R&D tax credit, I find that analysts’ forecast errors and abnormal volume increase surrounding quarterly earnings announcements for firms affected by the R&D tax credit.
People differ greatly in their financial risk taking behaviour. This heterogeneity has been associated with differences in brain activity, but only in laboratory settings using constrained behaviours. However, it is important to understand how these measures transfer to real life conditions, because the willingness to invest in riskier assets has a direct and considerable effect on long-term wealth accumulation.
Using a novel data set from 75 stores of a department store retail chain that changed its incentive plan for store managers to spur greater cooperation among them and with the corporate office, we examine how incentives impact operational decisions and, consequently, store outcomes.
We use the GARCH-MIDAS model to extract the long- and short-term volatility components of cryptocurrencies. As potential drivers of Bitcoin volatility, we consider measures of volatility and risk in the US stock market as well as a measure of global economic activity. We find that S&P 500 realized volatility has a negative and highly significant effect on long-term Bitcoin volatility.
Voice, or the expression of work-related suggestions or opinions, can help teams access and utilize members’ privately held knowledge and skills and improve collective outcomes. However, recent research has suggested that sometimes, rather than encourage positive outcomes for teams, voice from members can have detrimental consequences.
Private labels (PLs) represent a major opportunity for retailers, and a severe threat to brand manufacturers. However, considerable heterogeneity can be observed in PL growth rates across markets, creating ambiguity about their future growth potential. This poses a formidable challenge to both brands and retailers on how to allocate resources across different markets to prepare for the future.
On average, competing retailers near Lidl stores set their prices approximately 9.3% lower than in markets where Lidl is not present, which is more than three times as much as was typically reported in other academic work on Walmart’s entry in a new market. This price reaction results, on average, in substantial dollar savings for customers.
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.
After screening for attentiveness and comprehension, we present subjects with Ellsberg's (1961) two‐urn problem using essentially equivalent but representationally complex matrices. High‐comprehension subjects exhibit rates of ambiguity aversion typical of the standard two‐urn problem, while low‐comprehension subjects appear to randomise.
This trial will provide evidence on the impact of a behavioral intervention to implement huddles as a key component of team-based care models. Knowledge gained from this trial will be critical to broader deployment and successful implementation of team-based care models.
On Sept. 28, 2018, we traveled to Elizabeth City for the launch NCGrowth's SmartUp Program. We took a ride on U.S. Coast Guard boats, sampled local food and drink and learned how this nearly $1 million SunTrust Foundation grant will impact the community.
In June 2018, the UNC Tax Center and the Tax Policy Center co-hosted a conference to address the recently enacted federal tax reform on financial reporting and investment incentives in Washington, DC.
In 2018, the Institute for Private Capital celebrated the 10th anniversary of the Private Equity Research Consortium (PERC). The conference has established a reputation as leading the discussion between leading academics and practitioners in the private capital arena.
North Carolina is a migration magnet. In 2018 alone, more than 87,000 people moved into the state. Perhaps the most stunning example of how migration has transformed the state is the city of Durham, a once-gritty town that made its name in tobacco and textile manufacturing. Dr. Jim Johnson, director of the Urban Investment Strategies Center, believes taking advantage of Durham’s migration dividend and balancing it with more inclusive and equitable development is an imperative for success.
The Kenan Institute is proud to work in partnership with Gallup to explore a more holistic view of entrepreneurship in the U.S. with a focus on those who are driving economic growth in new ways. This work was featured at an event co-hosted by the Kenan Institute and held at Gallup headquarters in Washington, D.C. on Oct. 30, 2018.
China’s venture capital funding has contracted significantly since mid-2018. According to Christian Lundblad, director of research at the Kenan Institute, this is a byproduct of U.S. trade policy, some domestic Chinese investment policy and the usual ups and downs in a developing market. Some experts are now questioning if this will be China’s “tech bubble."
Using a novel dataset on global private equity investments in 19 industries across 52 countries, we find that labor productivity, employment, profitability, and capital expenditures increase for publicly-listed companies in the same country and industry as private equity investments. Our results show that positive externalities created by private equity firms are absorbed by other companies within the same industry.
This year Rethinc. Labs joined the Duke Quantum Center and the IBM Quantum Hub at NC State to bring their Financial Services focus to the Triangle Quantum Computing Seminar Series. For our next discussion we welcome Dylan Herman, from the JPMorgan Chase Future Lab for Applied Research and Engineering (FLARE). The focus of the FLARE quantum program is to develop quantum algorithms for financial applications and quantum-resistant cryptographic solutions.
In the U.S. automobile industry, manufacturers distribute products through dealers and rental agencies. To mediate direct competition between the two intermediaries, manufacturers adopted buyback programs to repurchase used rental cars from rental agencies and redistribute them through dealers.