Using 391 high-skilled firm entries in the U.S. from 1990–2010, we estimate the effects of the firm entry on incumbent residents’ consumption, finances, and mobility. We compare outcomes for residents living close to the entry location with those living far away while controlling for their proximity to potential high-skilled firm entry sites.
In online service marketplaces, supply-side thickness - the number of providers - is widely believed to be crucial for facilitating matches, i.e., transactions between providers and customers. The empirical literature generally supports this view, providing evidence for the hypothesis that market thickness increases matches, albeit at varying rates. This support is typically obtained in contexts with a passive seller listing where all sellers are readily listed for customers. Distinctively, our study empirically examines an online marketplace where providers are active, meaning they must take an action to be listed.
Federal, state and local governments worked hard to sustain entrepreneurial ecosystems, and especially small businesses, during the COVID-19 pandemic. Many of these programs were successful in helping businesses stay open during desperate times.
The patent system grants inventors temporary monopoly rights in exchange for a public disclosure detailing their innovation. These disclosures are meant to allow others to recreate and build on the patented innovation. We examine how the quality of these disclosures affects follow-on innovation.
Q&A featuring Yale School of Management Professor Olav Sorrenson, MIT Sloan School of Management Professor Matthew Rhodes-Kropf and Amadeus Capital Partners Chief Executive and Co-Founder Anne Glover.
When the federal government, state governments, industry, foundations and nonprofit organizations support scientific research, they do so with the goal of uncovering innovations and advancing science. But what about private donors? Their funding goals may not be as clear as those of mission- or profit-driven entities, but the substantial gifts of high-net-worth donors have substantial capacity to support significant scientific findings, societal outcomes and economic returns on investment. CREATE Project Manager Emily Nwakpuda shares her research in this area.
We examine the human capital of IPO-filing firms and how going public affects their labor force. IPO-filing firms have high average wages and limited industrial diversification. Moreover, we document that a successful IPO increases departures of high-skilled employees to startups and diversification though employment growth in non-core industries.
We use unique data on employee decisions in the employee stock purchase plans (ESPPs) of U.S. public firms to measure the influence of networks on investment decisions. Comparing only employees within a firm during the same election window and controlling for a metro area fixed effect, we find that the local choices of coworkers to participate in the firm’s ESPP exert a significant influence on employees’ own decisions to participate.
This study uses learning theory to show how knowledge domains affect product extension decisions and how these product decisions change as firms age. Faced with the choice of new product-markets, a firm might decide to introduce a similar product, by leveraging existing firm knowledge, or to experiment with a less familiar product, which requires new knowledge.
This study examines whether the value a venture derives from an affiliation depends on its relative standing in the portfolio of all affiliations held by its partner. Relative standing refers to how the venture ranks among other ventures in the partner’s portfolio with respect to expected returns. The relative standing of a venture in its partner’s portfolio influences the venture’s access to the partner’s resources and the venture’s performance.
Firms are increasingly launching initiatives with explicit social mandates. Often the business case for these initiatives is justified through one critical aspect of human capital management: employee retention. Although prior empirical studies have demonstrated a link between such corporate social initiatives and intermediate employee-related outcomes like motivation and identification with the firm, the relationship between employee participation in these initiatives and retention outcomes has not been investigated.
Addressing the call for a deeper understanding of ambidexterity at the individual level, we propose that managers’ networks are an important yet understudied factor in the ability to balance the trade-off between exploring for new business and exploiting existing business.
Economic recoveries can be slow, fast, or involve double dips. This paper provides an explanation based on the dynamic interactions between bank lending standards and firm entry selection. In the model, bank lending standards refer to both how banks screen borrowers with unknown quality and whether well-qualified borrowers are credit rationed, and firm entry selection refers to the mechanism through which financing conditions select firms of different quality to enter the lending market.
This session delves into three critical aspects of smaller/regional funds. First, is their role in increasing diversity among both capital allocators and entrepreneurs who receive funding. Second, is how pooling capital in diversified vehicles that can invest locally can promote investment by larger VCs/investors. Third, is how regional funds can bridge the divides in communities that lack robust VC ecosystems.
Across the globe, the average commute is 38 minutes each way, and it is well known that lengthy commutes negatively affect employees’ well-being and job-related outcomes leading to decreased job satisfaction and increased turnover. Despite the importance of commuting in employees’ everyday life, little is known about how negative effects of lengthy commutes could be attenuated.
In this study, we conducted a meta-analysis to examine the moderating role of national culture on the relationship between perceptions of organizational politics and individual attitudes and behaviors.
We examine the effect of pay transparency on gender pay gap and firm outcomes. This paper exploits a 2006 legislation change in Denmark that requires firms to provide gender disaggregated wage statistics. Using detailed employee-employer administrative data and a difference-in-differences and difference-in-discontinuities designs, we find the law reduces the gender pay gap, primarily by slowing the wage growth for male employees.
A BloombergView article on the negative economic effects of the growing number of mega companies dominating American markets features the latest research co-authored by Kenan Institute Director Greg Brown. The research looks at how the dramatic change in the number and composition of firms listed on major U.S. exchanges over the past two decades – namely, more larger, older companies and fewer companies overall – has resulted in historically low levels of idiosyncratic risk.
We find that equity loan fees are the best predictor of cross-sectional returns. When compared to 102 other anomalies, the loan fee anomaly has the highest monthly long-short return (1.17%), has the highest monthly Sharpe Ratio (0.40), and unlike other anomalies, exhibits strong persistence throughout the sample.
We compare several approaches for generating a prioritized list of products to be counted in a retail store, with the objective of detecting inventory record inaccuracy and unknown out-of-stocks. We consider both "rule-based" approaches, which sort products based on heuristic indices, and "model-based" approaches, which maintain probability distributions for the true inventory levels updated based on sales and replenishment observations.