UNC Professor Mohammad Jarrahi and IBM’s Phaedra Boinodiris address concerns about organizational adoption of artificial intelligence and how to include employees in important discussions, such as ethical considerations and potential job-related changes.
UNC Kenan-Flagler Business School Professor Jim Johnson, director of the Urban Investment Strategies Center, defines three groups facing challenges as companies return to the office and updates his forecast of demographic gale force winds.
PNC Distinguished Professor of Strategy and Entrepreneurship, UNC Kenan-Flagler Business School
Director of Research, Kenan Institute of Private Enterprise; Faculty Director, NCGrowth; and Professor of Finance and Sarah Graham Kenan Distinguished Scholar, UNC Kenan-Flagler Business School
David E. Hoffman Distinguished Professor of Accounting, Faculty Director for UNC Tax Center
There is widespread concern about whether Chief Executive Officers (CEOs) are appropriately punished for poor performance. While CEOs are more likely to be forced out if their performance is poor relative to the industry average, overall industry performance also matters.
Using a novel dataset on global private equity investments in 19 industries across 52 countries, we find that labor productivity, employment, profitability, and capital expenditures increase for publicly-listed companies in the same country and industry as private equity investments. Our results show that positive externalities created by private equity firms are absorbed by other companies within the same industry.
A firm's growth and survival depends on the ability of its managers to explore for new business and knowledge; yet, exploration is challenging for most large, established firms. Extending prior research into networks and exploration, we propose that a key characteristic of managers' external networks – the extent to which their networks include relationships built using predominately individual rather than firm resources – is positively related to managers' abilities to explore for new business and knowledge in large firms.
This article describes an American community survey and a survey of business owners of which the data are merged to assess the experiences of minority- versus white-owned small businesses between 2007 and 2012. This is highlighted due to it being a period encompassing the worst economic downturn since The Great Depression. White firms declined while minority firms grew rapidly. Despite recent efforts to create inclusive entrepreneurial and business ecosystems, however, minority business owners made little progress toward achieving equity or parity with white business owners. Policy prescriptions and implications for future research are discussed.
Firms' payout decisions respond to expected returns: everything else equal, firms invest less and pay out more when their cost of capital increases. Given investors' demand for firm payout, market clearing implies that the dynamics of productivity and payout demand fully determine equilibrium asset prices and returns. We use this logic to propose a payout-based asset pricing framework and we illustrate the analogy between our approach and consumption-based asset pricing in a simple two-period model. Then, we introduce a quantitative payout-based asset pricing model and calibrate the productivity and payout demand processes to match aggregate U.S. corporate output and payout empirical moments. We find that model-implied payout yields and firm returns go a long way in reproducing key attributes of their empirical counterparts.