The SVB collapse offers many lessons, but they are more about properly hedging against interest rate risk and the importance of timely intervention by regulators than the current state of the economy.
Chief Economist Gerald Cohen discusses why the uncertainty caused by the debt ceiling crisis is bad for the economy - regardless of how the situation ends.
This paper investigates the causal impact of entrepreneurs' prior experience on startup success. Employing within-country changes in Green Card wait lines to instrument for immigrant first-time entrepreneurs' experience, we uncover that startups led by more experienced founders demonstrate superior funding, patenting, and employee growth.
New business formation plays a crucial role in predicting economic activity in North Carolina. Research shows that business starts positively impact county GDP growth and job creation, with larger effects in highly populated counties. The impact is smaller but still significant in less populated counties. Employment growth also varies by sector—new businesses in goods-producing industries create jobs after a delay, while service-sector businesses contribute to job growth more quickly. This research was done in collaboration with the North Carolina Secretary of State’s Office and the North Carolina Collaboratory.
Older adults prefer to age in their homes rather than in an institution. However, in order to successfully age in place, age-friendly modifications are usually necessary to prevent life-threatening accidental falls and exposure to other environmental risks or hazards that unfortunately are all too common among older adults living in their own homes today.
Organizations learn and adapt their aspiration levels based on reference points (prior aspiration, prior performance, and prior performance of reference groups). The relative attention that organizations allocate to these reference points impacts organizational search and strategic decisions.
This study seeks to inform investment academics and practitioners by describing and analyzing the population of return predictive signals (RPS) publicly identified over the 40-year period 1970–2010. Our supraview brings to light new facts about RPS, including that more than 330 signals have been reported; the properties of newly discovered RPS are stable over time; and RPS with higher mean returns have larger standard deviations of returns and also higher Sharpe ratios.
Linguistic features of a firm’s regulatory filings, taken at face value, convey valuable information about the firm. In this paper, we examine whether a manager-specific, non-economic component also exists within these filings and whether investors consider this component when assessing firm value. To do so, we build on prior research that shows founders have unique personality attributes, including excessive optimism.
We examine the relation between high frequency quotation and the behavior of stock prices between 2009 and 2011 for the full cross section of securities in the US. On average, higher quotation activity is associated with price series that more closely resemble a random walk, and significantly lower cost of trading.
The authors study the drivers and performance implications of retailers’ branding strategies for their premium and economy private-label tiers. Retailers can opt for store-banner branding and use their store-banner name and/or logo to reveal their ownership, or they can use stand-alone branding and avoid an explicit link between store brand and retail banner.
In this study, we use hourly data on store traffic, sales, and labor from 41 stores of a large retail chain to identify the extent of understaffing in retail stores and quantify its impact on sales and profitability. Using an empirical model motivated from queueing theory, we calculate the benchmark staffing level for each store, and establish the presence of systematic understaffing during peak hours.
Caller abandonment could depend on their past waiting experiences. Using Cox regressions we show that callers who abandoned or waited for a shorter time in the past abandon more in the future. However, Cox regression approach does not shed light on callers’ prior belief about the duration of their delays.
The efficiency of price discovery in the REIT market is an issue of enduring interest. Unfortunately, existing studies focus on REIT index data, and the general equity efficiency literature that uses individual assets typically excludes this sector.
We propose a general GARCH framework that allows one to predict volatility using returns sampled at a higher frequency than the prediction horizon.
The hypercompetitive aspects of modern business environments have drawn organizational attention toward agility as a strategic capability. Information technologies are expected to be an important competency in the development of organizational agility.
Using unique data on employee ownership plans sponsored by U.S. public companies, we find that large negative market shocks lead to active changes in portfolio choices among inexperienced and previously inattentive investors. We use employee ownership plans to identify a set of inexperienced investors who did not actively select to participate in the market and who are confronted with a difficult financial decision.
Although the level of power held by the marketing department can determine key organizational outcomes, including firm performance, this power often is modest and, in many firms, diminishing. To address this apparent disconnect, the authors propose that the board of directors is a critical but overlooked driver of marketing department power.
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?
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.
There is no doubt that the COVID-19 crisis has devastated the U.S. economy. But the particulars of this devastation are difficult to gauge, because unique aspects of the of the pandemic distort the data commonly used to assess such situations. In this Kenan Insight, we take a deep dive into the data to learn what it actually tells us about the economic impact of COVID-19, and suggest possibilities for a restart and recovery of the U.S. economy.