Research Economist Sarah Dickerson shared news of healthy jobs numbers from June and looked at the effects of a decrease in foreign-born workers on new home construction.
Despite decades of research on how, why, and when companies manage earnings, there is a paucity of evidence about the geographic location of earnings management within multinational firms. In this study, we examine where companies manage earnings using a sample of 2,067 U.S. multinational firms from 1994 to 2009. We predict and find that firms with extensive foreign operations in weak rule of law countries have more foreign earnings management than companies with subsidiaries in locations where the rule of law is strong. We also find some evidence that profitable firms with extensive tax haven subsidiaries manage earnings more than other firms and that the earnings management is concentrated in foreign income. Apart from these results, we find that most earnings management takes place in domestic income, not foreign income.
The process for producing advanced bio-fuels from woody biomass using fast pyrolysis technology is in an early stage of development. Whether it will offer favorable economics versus future petroleum-derived fuels or other advanced bio-fuels is not clear at this time; however, a study of the value chain from growth to final distribution of drop-in bio-fuels has highlighted several factors that will have major impact on ultimate economics.
Our goal in this report is to assess the demographic and economic impacts of immigrants or the foreign-born on North Carolina regions, counties, and communities as well as The State as a whole.
This study examines whether the information content of earnings announcements – abnormal return volatility and abnormal trading volume – increases in countries following mandatory IFRS adoption, and conditions and mechanisms through which increases occur. Findings suggest information content increased in 16 countries that mandated adoption of IFRS relative to 11 that maintained domestic accounting standards, although the effect of mandatory IFRS adoption depends on the strength of legal enforcement in the adopting country.
Much is known about the importance of learning and some of the distinct learning processes that organizations use (e.g., trial-and-error learning, vicarious learning, experimental learning, and improvisational learning). Yet surprisingly little is known about whether these processes combine over time in ordered ways, because most research on learning explores one particular process. Using theory elaboration and theory-building methods and data on the accumulated country entries of entrepreneurial firms, we address this gap. Our core contribution is an emergent theoretical framework that develops the concept of learning sequences. We find that learning sequences exist and are influenced by initial conditions.
Learning may be the single greatest challenge when entering offshore markets. Few, if any, employees have in-depth knowledge of markets other than the one where they live. Faced with the need to learn quickly about a foreign market, many companies employ a variety of approaches, in a variety of sequences. How does the sequence in which a company applies learning approaches affect performance? To assess this question, we observed nine companies in the high technology industry. To minimize geographic and cultural bias, we selected companies with headquarters in three culturally distinct markets: Finland, the U.S. and Singapore.
Analogies can help people make sense of technological change and other innovations. Using them effectively relies on recognizing both their benefits and pitfalls.
This study explores how firms learn heuristics from negative outcomes. Prior literature has suggested that learning is strongly affected by whether attributions for negative outcomes are internal or external. Our data complement this view by revealing a new and different pattern. Specifically, they show that learning heuristics appears more dependent on whether attributions are convergent or divergent across hierarchical levels.
Artificial intelligence enhancements are increasingly shaping our financial decision-making. But with what result?
Networks of serial entrepreneurs, investors, and their affiliated companies play a critical role in driving entrepreneurial behavior, investor focus, and innovation hot spots within specific industry sectors and are critical for shaping the character of robust regional economies.
The argument that ESG investing generates more stable and higher long-term returns has come under scrutiny, including recent data showing long-run underperformance of ESG funds over the past five years. In this Kenan Insight, we provide some clarification based on recent research that revisits fundamental questions: why and how some investors take ESG factors into account in the first place.
While the literature highlights the benefits of internally redeploying resources, there is less empirical guidance on which resources are most likely to be redeployed. We examine the relationship between inventor characteristics and redeployment decisions, motivated by the tension between costs and benefits of keeping a resource at the source unit versus moving it to a new target unit.
On January 18-19, 2018, the Frank H. Kenan Institute of Private Enterprise and its affiliated Center for Entrepreneurial Studies will convene a highly curated group of 100 thought leaders to discuss leading-edge research on private business ventures and explore ways to sustain and advance entrepreneurship.
The current study meta-analytically examined the gendered nature of lateral and upward influence attempts. Drawing from gender role theory, we investigated the extent to which the gender of the influence actor affected the use and effectiveness of influence behaviors. The role of a gendered environmental context was also examined.
Global Chief Marketing Officer, Prime Video & Amazon Studios
Please join us for an exclusive virtual conversation with Prime Video and Amazon Studios Global Chief Marketing Officer Ukonwa Kuzi-Orizu Ojo (BSBA '97) on Tuesday, April 12. This discussion is part of the Dean’s Speaker Series, hosted by Kenan-Flagler Business School Dean Doug Shackelford.
As of 2019, salary history bans were enacted by 17 states and Puerto Rico with the stated purpose of reducing the gender pay gap. We argue that salary history bans may negatively affect wages as employers lose an informative signal of worker productivity. We empirically evaluate these laws using a large panel dataset of disaggregated wages covering all public-sector employees in 36 states and find, on average, that salary history bans lead to a 3% decrease in new-hire wages.
Perez-Truglia, a Kenan Institute Distinguished Fellow, will summarize the latest research, including his own, to provide a better understanding of the effectiveness of pay transparency laws.
In this edition of the Dean Speaker Series, join us for an engaging fireside chat with Dean Mary Margaret Frank and Stephanie Headley for an exploration of resilient leadership navigating the complexities of today’s business landscape.
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.