...for academic and industry leaders across the globe. Deliver cutting-edge education to students and executives KEVI positions the Kenan Institute as a leader in emerging and increasingly important areas of...
Both the increased transparency and the institutionalization of the municipal bond market have led to dramatic declines in the profits of underwriters, especially so for those whose underwriting activity is national in scope. Using comprehensive data on all trades, all bonds, and all underwriting spreads available between 2005 and 2023, we show that underwriters facing increasingly informed investors in the primary market are unable to capture high markups from investors but are also unable to raise costs to issuers.
In kicking off the new year, we at the Kenan Institute want to highlight five topics we anticipate will be top of mind for business leaders and policymakers during the 12 months ahead. Although some of these challenges – such as the recession we expect – can be painful, they also present opportunities. To help you navigate this rapidly evolving economic landscape, the Kenan Institute will work to provide solutions-focused analysis on the following as well as related issues throughout 2023.
Traditional models of operations management involve dynamic decision-making assuming optimal (Bayesian) updating. However, behavioral theory suggests that individuals exhibit bias in their beliefs and decisions. We conduct both a field study and two laboratory studies to examine the phenomena in the context of health. In particular, we examine how an individual’s prior experiences and the experiences of those around them alter the operational decisions that the individual makes.
This article examines the role of Generative Artificial Intelligence (GenAI) in the context of marketing education, highlighting its substantial impact on the field. The study is based on an analysis of how GenAI, particularly through the use of Large Language Models (LLMs), functions. We detail the operational mechanisms of LLMs, their training methods, performance across various metrics, and the techniques for engaging with them via prompt engineering.
The pricing of prescription drugs comes under persistent public scrutiny, yet limited empirical evidence details the determinants of these price levels. This study provides a price function specification for newly launched drugs, with marginal cost and pricing power components.
While recent literature has depicted status as an intangible asset that is firm‐specific and mobile, we have a limited understanding of whether status confers advantage in a way similar to other intangible assets. This study examines the macro‐structural contingencies that influence the marginal value of firm status as firms expand to new markets. Building on the literatures on status and social approval assets, as well as globalization and international management, we hypothesize that two conditions influence how valuable home‐country status will be in a given host country: the interconnectedness of the home and host countries, and their relative position in the global network. We test our hypotheses in a study of 187 venture capital (VC)‐backed biotechnology ventures in 19 countries between 1990 and 2006.
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.
We integrated theories of social exchange and emotional ambivalence to explain how ambivalent relationships influence interpersonally directed helping and harming behaviors. Using multiple methodologies, including a study of student teams, an experiment, and a quasifield study of retail employees, we compared ambivalent relationships with positive and negative relationships. Our three studies provide convergent evidence that ambivalent relationships with coworkers are positively related to both helping and harming behaviors.
We examine the intersection of two major trends at online retail platforms: the emergence of retail media, which allows sellers to advertise on retail platforms alongside selling their products, and the platforms' switch away from reselling towards marketplace formats. We study whether and when a retail platform benefits from introducing sponsored advertising, and how the effects change with the platform's selling format. We consider two sellers with different qualities selling through a retail platform. We find that counter to our intuitions, offering sponsored advertising may not always benefit the platform, depending on its selling format.
Kenan Institute Executive Director Greg Brown and University of Chicago Booth School of Business Professor Steve Kaplan have co-authored a new white paper assembling the most current, comprehensive performance data on U.S. private equity buyout funds available. Contrary to some recent articles, this research shows U.S. buyouts have consistently outperformed public markets in the post-crisis era.
State initiatives that build innovation capacity by supporting local academic research, attracting eminent scholars, and building research excellence have become prominent among the 50 states over the past 30 years. This article focuses on three programs: University Research Grants, Eminent Scholars, and Centers of Excellence.
The Kenan Institute's Future of Fintech: Blockchain, Cryptocurrency and the Emerging Ecosystem symposium was featured in a WRAL TechWire story on Jan. 25. In partnership with Ripple, the event brought together business leaders, academic researchers and public sector financial regulators to discuss emerging trends, issues and opportunities in the financial technology sector.
We conduct a field-experiment at an automobile spare-parts retailer to examine the profit implications of providing discretionary power to managers.
Older adults will drive U.S. population growth over the next quarter century. Projected to grow four times as fast as the total population, older adults will make up of 22 percent of the population in 2040, up from 15% in 2015. We believe this population aging can be a new engine for innovation, business development, and employment growth in the U.S.
In the last few decades, many healthcare institutions converted their ownership type from nonprofit to for-profit, contributing to an increased presence of for-profit ownership in the U.S. healthcare sector. There have been opposing views on whether such ownership conversions benefit the public. Employing a large panel dataset of U.S. nursing homes from 2006 to 2015, we conduct a difference-in-differences analysis on converted facilities’ financial performance, operating policies, and quality of care. We observe that converted facilities significantly increased their post-conversion profit margins, compared to propensity-score-matched controls.
Modeling consumer heterogeneity helps practitioners understand market structures and devise effective marketing strategies. In this research we study finite mixture specifications for modeling consumer heterogeneity where each regression coefficient has its own finite mixture, that is, an attribute finite mixture model.