The Biden administration's $2.3 trillion American Jobs Plan comes with a hefty price tag, which the president hopes to pay in part by introducing a 15% minimum tax on corporate book income. Predictably, policymakers from both sides of the aisle are sounding off, but the argument is more complicated and nuanced than partisan rhetoric. In this Kenan Insight, we outline the intricacies and implications of taxing book income.
Mark Little, executive director of the Kenan Institute-affiliated center CREATE, provided expert testimony in a process that resulted in a May 11 settlement agreement regarding contracting and hiring practices for Dominion Energy’s $9.8 billion Coastal Virginia Offshore Wind renewable energy project.
This study examines the spillover effect of environmental enforcement through private lending networks. Financial lending institutions face growing public and regulatory pressures to manage and reduce environmental risks relating to their lending activities and therefore are motivated to monitor corporate borrowers’ environmental practices.
Every year, millions of students enroll in post-secondary programs with hopes of attaining the education they need to get ahead in the job market. But in the U.S. higher education system, “college acts like a lottery,” says Ben Miller, director of the Postsecondary Education Center for American Progress. Some students graduate with applicable skills and higher earning potential, while others leave unemployed with ever-increasing piles of debt.
This research utilizes data from the World Bank Investment Climate Survey to examine the use of external capital for almost 70,000 small and medium-sized firms in 103 developing and developed countries.
Last month, Patrick Hartley, a distinguished member of the Kenan-Flagler community, joined the Kenan Institute as a Fellow. He has been a Professor of the Practice of Finance at Kenan-Flagler for nearly twelve years. Currently, he also serves as President of the board of directors of the Kenan-Flagler Business School Foundation.
While prior research highlights the importance of codifying alliance experience to achieve alliance success, it is unclear whether codification is equally useful in the different phases of an alliance. Based on a sample of 192 technology firms that report on over 3,400 strategic alliances, we find that in the partner selection and termination phases, reliance on codified knowledge is useful. However, in the partner management phase, reliance on codified knowledge is less beneficial and can be even negatively related to performance. Our findings have implications for the tension between flexibility and efficiency and the relationship between structure and performance.
While much research indicates that organizational processes are learned from experiences, surprisingly little is known about what is actually learned. Using a novel method to measure explicit learning, we track the learned content of six technology-based ventures from three diverse countries as they internationalize. The emergent theoretical framework indicates that firms learn heuristics. These heuristics have a common structure centered on opportunity capture and are learned in a specific developmental order. This results in a deliberately small, yet increasingly strategic, portfolio of heuristics. Broadly, we contribute to the psychological foundations of strategy by highlighting the rationality of heuristics as strategy, capability creation as the cognitive transition from novice to expert heuristics, and simplification cycling as a critical dynamic capability for sustaining competitive advantage.
North Carolina Governor Roy Cooper urged private capital investors to work with government policymakers to bolster investment in the state's economy. His remarks were part of a keynote address to attendees of the first-ever North Carolina Investment Forum, held Wednesday, November 1, at the Kenan Center in Chapel Hill.
The Kenan Institute is proud to host Domino’s Pizza CEO Patrick Doyle for an exclusive conversation with UNC Kenan-Flagler Business School students as part of its Dean’s Speaker series.
Using 391 high-skilled firm entries in the U.S. from 1990–2010, we estimate the effects of the firm entry on incumbent residents’ consumption, finances, and mobility. We compare outcomes for residents living close to the entry location with those living far away while controlling for their proximity to potential high-skilled firm entry sites.
In online service marketplaces, supply-side thickness - the number of providers - is widely believed to be crucial for facilitating matches, i.e., transactions between providers and customers. The empirical literature generally supports this view, providing evidence for the hypothesis that market thickness increases matches, albeit at varying rates. This support is typically obtained in contexts with a passive seller listing where all sellers are readily listed for customers. Distinctively, our study empirically examines an online marketplace where providers are active, meaning they must take an action to be listed.
Federal, state and local governments worked hard to sustain entrepreneurial ecosystems, and especially small businesses, during the COVID-19 pandemic. Many of these programs were successful in helping businesses stay open during desperate times.
The patent system grants inventors temporary monopoly rights in exchange for a public disclosure detailing their innovation. These disclosures are meant to allow others to recreate and build on the patented innovation. We examine how the quality of these disclosures affects follow-on innovation.
Q&A featuring Yale School of Management Professor Olav Sorrenson, MIT Sloan School of Management Professor Matthew Rhodes-Kropf and Amadeus Capital Partners Chief Executive and Co-Founder Anne Glover.
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? Their funding goals may not be as clear as those of mission- or profit-driven entities, but the substantial gifts of high-net-worth donors have substantial capacity to support significant scientific findings, societal outcomes and economic returns on investment. CREATE Project Manager Emily Nwakpuda shares her research in this area.
We examine the human capital of IPO-filing firms and how going public affects their labor force. IPO-filing firms have high average wages and limited industrial diversification. Moreover, we document that a successful IPO increases departures of high-skilled employees to startups and diversification though employment growth in non-core industries.
We use unique data on employee decisions in the employee stock purchase plans (ESPPs) of U.S. public firms to measure the influence of networks on investment decisions. Comparing only employees within a firm during the same election window and controlling for a metro area fixed effect, we find that the local choices of coworkers to participate in the firm’s ESPP exert a significant influence on employees’ own decisions to participate.
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.
This study examines whether the value a venture derives from an affiliation depends on its relative standing in the portfolio of all affiliations held by its partner. Relative standing refers to how the venture ranks among other ventures in the partner’s portfolio with respect to expected returns. The relative standing of a venture in its partner’s portfolio influences the venture’s access to the partner’s resources and the venture’s performance.