We analyze how Dodd-Frank-mandated risk retention affects the information investors extract from issuers’ retention choices in the CMBS market. We show that the required retention level is both binding and stringent.
In this paper, we propose a research agenda for psychologists in general, and scholars of culture and negotiations in particular, to address the key challenges of dealing with an increasingly globalized world from a psychological perspective. Building on an understanding of globalization in terms of cultural and subjective matters, we propose three research domains in which psychology scholars can contribute to a further understanding of our global society: (a) the effects of global contact on cognition and behavior; (b) hybridization and human agency; and (c) new forms of cooperation.
This study finds that greater asymmetric timeliness of earnings in reflecting good and bad news is associated with slower resolution of investor disagreement and uncertainty at earnings announcements. These findings indicate that a potential cost of asymmetric timeliness is added complexity from requiring investors to disaggregate earnings into good and bad news components to assess the implications of the earnings announcement for their investment decisions.
Empirical research in operations management has increased steadily over the last 20 years. In this paper, we discuss why this is good for our field and offer some comments on the qualities we admire in an empirical operations management paper.
What is the impact of higher technological volatility on asset prices and macroeconomic aggregates? I find the answer hinges on its sectoral origin. Volatility that originates from the consumption (investment) sector drops (raises) macroeconomic growth rates and stock prices.
Minority acquisitions, involving less than 50% of the target, represent a distinct organizational choice. Minority acquisition can mitigate some of the incentive problems that arise in contractual relationships. Less is known, however, about the trade-off between minority acquisitions and complete integration.
We consider the allocation of inventory to stores in a “merchandise test,” whereby a fashion retailer deploys a new product to stores in limited quantities in order to learn about demand prior to the main selling season. Our problem formulation includes practical considerations like fixed costs and multiperiod inventory considerations but is challenging to analyze directly. Instead, we take a bounding approach that isolates the novel aspect of our problem: the impact of test inventory allocation on demand learning.
Inspired by recent empirical work on inventory record inaccuracy, we consider a periodic review inventory system with imperfect inventory records and unobserved lost sales. Record inaccuracies are assumed to arrive via an error process that perturbs physical inventory but is unobserved by the inventory manager. The inventory manager maintains a probability distribution around the physical inventory level that he updates based on sales observations using Bayes Theorem. The focus of this study is on understanding, approximating, and evaluating optimal forward-looking replenishment in this environment.
We examine a brick-and-mortar retailer’s choice of which product to include in a promotional display (e.g., an “endcap” display). The display provides a visibility advantage to both the featured product and its category, but it also has consequences for customer traffic and substitution.
Are divestitures really just the “flip side” of acquisitions? Both divestiture and acquisition are important processes for firm scope change. Frequently, these processes are considered to be “two sides of the same coin” wherein a divestiture is simply an acquisition performed “in reverse.” In contrast to this perspective, the authors submit that these two corporate strategic processes have fundamental differences in their motivations, implementation, and ramifications.
Editorial to the JOM special issue on Pre-approved Research Designs for Field Experiments.
Focusing on the ten countries with the most-traded currencies, we provide novel empirical evidence about the existence of significant heterogenous exposure to global growth news shocks.
We study whether asset-class risk dynamics can help explain the predominantly negative stock-bond return relation and movements in the term-structure's slope over 1997-2011.
This paper aims to advance the use of numerical experiments to investigate issues that surround the design of cost systems. As with laboratory and field experiments, researchers must decide on the independent variables and their levels, the experimental design, and the dependent variables. Options for dependent and independent variables are ample, as are the ways in which we can model the relations among these variables.
We consider the inventory management problem of a firm reacting to potential change points in demand, which we define as known epochs at which the demand distribution may (or may not) abruptly change. Motivating examples include global news events (e.g., the 9/11 terrorist attacks), local events (e.g., the opening of a nearby attraction), or internal events (e.g., a product redesign).
A retailer cannot sell more than it has in stock; therefore, its sales observations are a censored representation of the underlying demand process. When a retailer forecasts demand based on past sales observations, it requires an estimation approach that accounts for this censoring. Several authors have analyzed inventory management with demand learning in environments with censored observations, but the authors assume that inventory levels are known and hence that stockouts are observed.
Abstract We study the problem faced by a supplier deciding how to dynamically allocate limited capacity among a portfolio of customers who remember the fill rates provided to them in...
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.
“Mega-threats”—negative, identity-relevant societal events that receive significant media attention—are frequent occurrences in society, yet the influence of these events on employees remains unclear. We draw on the theory of racialized organizations to explain the process whereby exposure to mega-threats leads to heightened avoidant work behaviors for racial minority employees.
Current innovation literature provides a very limited understanding of the potential impacts of innovative culture on employees. Building on resource-based view theory, the authors investigate theoretically and empirically how a perceived innovative culture can be a building block for a firm's competitive resource and advantage by creating superior employee-level outcomes and how a market information-sharing process may moderate these effects.