Shareholder activists remain an important force in the boardroom. More than 60 activist campaigns were initiated against S&P 1500 companies in 2016. And although activist hedge funds have under‐performed the broad market since 2013, activists’ assets under management are still nearly double their level of four years ago, and announcements of their campaigns continue to be met with increases in the target companies’ stock prices.
Corporate restructurings accomplished through spinoffs have long been a key tool for management to unlock shareholder value. In 2016, global spinoff volume reached $117 billion, and spinoff activity continues to unfold at a similar pace in 2017, with Hilton, Xerox, Alcoa, Johnson Controls, and Danaher all recently completing major transactions.
While previous research has investigated various drivers of electronic word of mouth (eWOM), the firm's offline competitive environment has not been considered. The authors explore this new horizon and examine the different effects of firms’ geographic concentration, or agglomeration, on the volume of eWOM received. They distinguish three types of agglomeration—density agglomeration (number of firms in the industry in an area), product agglomeration (overlap in product types offered by the firms in the area), and temporal agglomeration (overlap in moment of consumption).
We hypothesized that individuals in cultures typified by lower levels of relational mobility would tend to show more attention to the surrounding social and physical context (i.e., holistic vs. analytic thinking) compared with individuals in higher mobility cultural contexts. Six studies provided support for this idea. Studies 1a and 1b showed that differences in relational mobility in cultures as diverse as the U.S., Spain, Israel, Nigeria, and Morocco predicted patterns of dispositional bias as well as holistic (vs. analytic) attention.
We prove that in equilibrium, imposing or increasing a market-based undersupply penalty rate in a period can result in a strictly larger renewable energy commitment at all prices in the associated day-ahead market, and can lead to lower equilibrium reliability in all periods with probability 1. We also show in an extension that firms with diversified technologies result in lower equilibrium reliability than single-technology firms in all periods with probability 1.
The spatial diffusion and adoption of rDNA methods, Regional Studies. The 1980 patent granted to Stanley Cohen and Herbert Boyer for their development of rDNA technology played a critical role in the establishment of the modern biotechnology industry. From the birth of this general-purpose technology in the San Francisco Bay area, rDNA-related knowledge diffused across sectors and regions of the US economy.
Intersectionality has emerged as an important theoretical concept for examining intersecting social hierarchies and has garnered varying interpretations and applications in scholarly discourse. To help organize varied definitions of intersectionality that are commonly used in the social sciences, we propose a typology that distinguishes between primary, pragmatic, and pluralistic intersectionality.
A fundamental issue faced by operations management researcher relates to striking the right balance between rigor and relevance in their work. Another important aspect of operations management research relates to influencing and positively impacting businesses and society at large. We constantly struggle to achieve these objectives.
Heuristics play an important role in organizational decision-making. Although management and organizational scholars have contributed significantly to our understanding of heuristics in organizations over the past seven decades, the literature has become fragmented over time. We review and synthesize the literature and put forward an integrative process model of heuristics in organizations.
Past research in operations management and marketing on inventory levels and product variety has predominantly focused on their effects on brand performance indicators, such as sales and market share, while overlooking the influence on consumers’ perceptions of brands. Brand perceptions, encompassing reputation, quality, credibility, and emotional associations, go beyond typical revenue metrics and offer foresight into a brand’s future performance. Hence, understanding the effects of inventory and product variety on brand perceptions is crucial, and that constitutes the main contribution of this paper.
Widespread adoption of electronic medical record (EMR) systems is increasing. EMR implementation can be costly and typically requires workflow redesign. To our knowledge, no studies to date have examined the impact of EMR implementation using advanced cost accounting methods or the impact of its implementation on orthopaedic surgeons in an outpatient setting. Time-driven activity-based costing (TD-ABC) was used to evaluate the effect of EMR implementation in an outpatient adult reconstruction clinic.
This study examines whether key characteristics of analysts’ forecasts—timeliness, accuracy, and informativeness—change when investor demand for information is likely to be especially high, i.e., during periods of high uncertainty. Findings reveal that when uncertainty is high, analysts’ forecasts are more timely but less accurate. However, analysts’ forecasts are also more informative to the market, which is consistent with investors’ demand for timely information, even if it is less accurate.
This study addresses whether voluntary IFRS adoption is associated with increased comparability of accounting amounts and capital market benefits. We find that after firms voluntarily adopt IFRS (“adopting” firms), their accounting amounts are more comparable to those of firms that previously adopted IFRS (“adopted” firms) and less comparable to those of firms that apply domestic standards (“non-adopting” firms). Adopting firms exhibit increased liquidity, share turnover, and firm-specific information relative to adopted and non-adopting firms. Neither adopted nor non-adopting firms suffer capital market consequences. Adopting firms with higher comparability with adopted firms have greater capital market benefits after adopting IFRS than adopting firms with lower comparability, and capital market benefits for adopting firms in countries with a relatively high percentage of firms that apply IFRS enjoy greater capital market benefits.
Past research has shown that founders bring important capabilities and resources from their prior employment into their new firms and that these intergenerational transfers influence the performance of these ventures. However, we know little about whether organizational practices also transfer from parents to spawns, and if so, what types of practices are transferred? Using a combination of survey and registrar data and through a detailed identification strategy, we examine these two previously unaddressed questions.
This article utilizes a unique database (PLACE, the PLatform for Advancing Community Economies) to explore relationships between founders’ prior work experiences and the outcomes of their entrepreneurial firms.
We study the foreign externalities of the recent U.S. tax reform, commonly known as the Tax Cuts and Jobs Act (TCJA). Specifically, we examine foreign firms’ stock returns around key tax reform events. We find significant heterogeneity in market responses by country, industry, and firm.
We discuss the evolution of research on textual attributes in accounting and suggest potential directions for future research using Cazier and Pfeiffer (2017) to illustrate the challenges and opportunities in the literature. We categorize the literature based on whether a given textual attribute is assumed to be “discretionary” versus “nondiscretionary” and whether it is assumed to be “helpful” versus “harmful.” The literature to date has been largely descriptive, with limited focus on causality, and we argue that there are substantial opportunities for research that better isolate the discretionary components of textual disclosure, as well as identifying specific contexts in which a given attribute is more likely to be helpful than harmful.
Three-tiered private-label (PL) portfolio strategies (low-quality tier: economy PLs, mid-quality tier: standard PLs, and top-quality tier: premium PLs) are gaining interest around the world. Drawing on the context-effects literature, the authors postulate how the introduction of economy and premium PLs may affect the choice of mainstream-quality and premium-quality national brands (NBs) and the choice of the retailer's existing PL offering.
Perceived integrity of managers affects employee attitudes. Yet its impact on employee behavior and organizational performance is unknown. Addressing this gap, we examine the effect of perceived integrity in leadership on both subjective firm performance and objective employee productivity.