We focus on implications of an agreed upon yet little considered conclusion from our 2001 article—that resource value is determined outside the business-level resource-based view. Starting with this ...premise, we argue that knowledge accumulation from strategy research—especially actionable knowledge about effective versus ineffective managerial judgments—would be stimulated with more balanced attention not only to value capture for the firm but also to value creation for the firm's customers and ultimately, consumers. To spur such wider attention, we offer an expanded boundary model that includes the demand side, business models, and business ecosystems within the strategy research "umbrella." Our proposal (1) extends what the current scholarly consensus might consider "normal" strategy research, (2) sets specific boundaries to guide future research, and (3) brings value creation for consumers to a more central position in the field. Viewing strategy from this broader perspective requires a shift in mindset, from focusing primarily on the firm to focusing more equally on the consumer, and from a primary emphasis on value capture to an equal emphasis on value creation. Such a shift faces obstacles but likely would spur innovative knowledge generation and result in a more dynamic, yet accumulative and prescriptive, strategy field.
Full text
Available for:
BFBNIB, IZUM, KILJ, NMLJ, NUK, PILJ, PNG, SAZU, UL, UM, UPUK
We examine the capital-market effects of changes in securities regulation in the European Union aimed at reducing market abuse and increasing transparency. To estimate causal effects for the ...population of E.U. firms, we exploit that for plausibly exogenous reasons, such as national legislative procedures, E.U. countries adopted these directives at different times. We find significant increases in market liquidity, but the effects are stronger in countries with stricter implementation and traditionally more stringent securities regulation. The findings suggest that countries with initially weaker regulation do not catch up with stronger countries, and that countries diverge more upon harmonizing regulation.
Full text
Available for:
BFBNIB, INZLJ, NMLJ, NUK, PNG, SAZU, UL, UM, UPUK, ZRSKP
This article analyzes how patent-induced shocks to labor productivity propagate into worker compensation using a new linkage of U.S. patent applications to U.S. business and worker tax records. We ...infer the causal effects of patent allowances by comparing firms whose patent applications were initially allowed to those whose patent applications were initially rejected. To identify patents that are ex ante valuable, we extrapolate the excess stock return estimates of Kogan et al. (2017) to the full set of accepted and rejected patent applications based on predetermined firm and patent application characteristics. An initial allowance of an ex ante valuable patent generates substantial increases in firm productivity and worker compensation. By contrast, initial allowances of lower ex ante value patents yield no detectable effects on firm outcomes. Patent allowances lead firms to increase employment, but entry wages and workforce composition are insensitive to patent decisions. On average, workers capture roughly 30 cents of every dollar of patent-induced surplus in higher earnings. This share is roughly twice as high among workers present since the year of application. These earnings effects are concentrated among men and workers in the top half of the earnings distribution and are paired with corresponding improvements in worker retention among these groups. We interpret these earnings responses as reflecting the capture of economic rents by senior workers, who are most costly for innovative firms to replace.
Full text
Available for:
IZUM, KILJ, NUK, PILJ, SAZU, UL, UM, UPUK
MANAGERIAL MISCALIBRATION Ben-David, Itzhak; Graham, John R.; Harvey, Campbell R.
The Quarterly journal of economics,
11/2013, Volume:
128, Issue:
4
Journal Article
Peer reviewed
Using a unique 10-year panel that includes more than 13,300 expected stock market return probability distributions, we find that executives are severely miscalibrated, producing distributions that ...are too narrow: realized market returns are within the executives’ 80% confidence intervals only 36% of the time. We show that executives reduce the lower bound of the forecast confidence interval during times of high market uncertainty; however, ex post miscalibration is worst during periods of high uncertainty. We also find that executives who are miscalibrated about the stock market show similar miscalibration regarding their own firms’ prospects. Finally, firms with miscalibrated executives seem to follow more aggressive corporate policies: investing more and using more debt financing.
Full text
Available for:
BFBNIB, INZLJ, IZUM, KILJ, NMLJ, NUK, PILJ, PNG, SAZU, UL, UM, UPUK, ZRSKP
We investigate whether short-termism distorts the investment decisions of stock market-listed firms. To do so, we compare the investment behavior of observably similar public and private firms, using ...a new data source on private U.S. firms and assuming for identification that closely held private firms are subject to fewer short-termist pressures. Our results show that compared with private firms, public firms invest substantially less and are less responsive to changes in investment opportunities, especially in industries in which stock prices are most sensitive to earnings news. These findings are consistent with the notion that short-termist pressures distort investment decisions.
Full text
Available for:
BFBNIB, INZLJ, NMLJ, NUK, PNG, SAZU, UL, UM, UPUK, ZRSKP
We document a causal response of local retail prices to changes in local house prices, with elasticities of 15–20 percent across housing cycles. These price responses are largest in zip codes with ...many homeowners and are driven by changes in markups rather than local costs. We argue that markups rise with house prices because greater housing wealth reduces homeowners’ demand elasticity, and firms raise markups in response. Shopping data confirm that house price changes affect the price sensitivity of homeowners, but not that of renters. Our evidence suggests a new source of business cycle markup variation.
Full text
Available for:
CEKLJ, INZLJ, IZUM, KILJ, NMLJ, NUK, PILJ, SAZU, UL, UM, UPUK, ZRSKP
Durante la década que comprende los años 2001 y 2011 se producen cambios de gran calado en la sociedad y en las ciudades españolas: asistimos al auge y a la caída de una gran burbuja inmobiliaria, la ...composición poblacional se transforma en base a unos años de fuerte inmigración internacional y se produce un importante desarrollo de la suburbanización en las grandes urbes. ¿Han afectado estas transformaciones a la tradicionalmente estable distribución socioterritorial de la población? El análisis sustantivo de la segregación necesita detalle territorial porque se produce en grandes metrópolis compuestas por numerosos núcleos que son densos, compactos y heterogéneos. Los resultados ponen de relieve un tipo específico de polarización basada en la fragmentación de los espacios desfavorecidos. Solo desde una escala detallada podríamos evaluar el impacto de las políticas de intervención urbana en la fragmentación. Junto a métricas clásicas de la segregación, se emplean y se expanden las posibilidades de los indicadores locales de autocorrelación espacial (LISA) para dar cuenta de los cambios en la distribución socioterritorial de las regiones metropolitanas de Barcelona y Madrid durante el periodo 2001-2011. Los grupos poblacionales tomados en consideración incluyen diferentes ejes de jerarquización: categorías ocupacionales (directivos, técnicos y profesionales o trabajadores cualificados); país de nacimiento; formación universitaria, y tamaño de la vivienda.
The paper reviews the literature on supply partner decision-making published between 2001 and 2011, a period that has seen a significant increase in work published in this field. The progress made in ...developing new models and methods that can be applied to this task is assessed in the context of the previous literature. Particular attention is given to those methods that are especially relevant for use in agile supply chains. The paper uses a classification framework that enables models intended for similar purposes to be compared and tracked over time. It is also used to identify a number of gaps in the literature. The findings highlight an on-going need to develop methods that are able to meet the combination of qualitative and quantitative objectives that are typically found in partner selection problems in practice.
► Reviews the literature on supply partner decision-making published between 2001 and 2011. ► Uses a classification framework to compare and track decision-making models over time. ► Notes the need for models to meet both qualitative and quantitative objectives in practice.
Full text
Available for:
GEOZS, IJS, IMTLJ, KILJ, KISLJ, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UL, UM, UPCLJ, UPUK
Using a novel, high frequency dataset on capital control actions in 16 emerging market economies (EMEs) from 2001 to 2012, we provide new evidence on the domestic and multilateral effects of capital ...controls. Increases in capital account openness reduce monetary policy autonomy and increase exchange rate stability, confirming the constraints of the monetary policy trilemma. Both gross in- and outflows rise, while the effect on net capital flows is ambiguous. Tighter capital inflow restrictions generated significant spillovers, especially in the post-2008 environment of abundant global liquidity. We also find evidence of a domestic policy response to foreign capital control changes in countries that are affected by these spillovers.
Display omitted
Full text
Available for:
GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UL, UM, UPCLJ, UPUK, ZRSKP
We compare chief executive officer (CEO) turnover in public and large private firms. Public firms have higher turnover rates and exhibit greater turnover–performance sensitivity (TPS) than private ...firms. When we control for pre-turnover performance, performance improvements are greater for private firms than for public firms. We investigate whether these differences are due to differences in quality of accounting information, the CEO candidate pool, CEO power, board structure, ownership structure, investor horizon, or certain unobservable differences between public and private firms. One factor contributing to public firms’ higher turnover rates and greater TPS appears to be investor myopia.
Full text
Available for:
BFBNIB, CEKLJ, INZLJ, IZUM, KILJ, NMLJ, NUK, PILJ, PNG, SAZU, UL, UM, UPUK, ZRSKP
PDF
