Although resources are instrumental to a competitive advantage, management must effectively bundle and deploy an organization's resources for an advantage to be realized. Despite their importance, ...little research has examined these managerial actions. Using a sample of competitive dyads, we tested theory regarding the effects of rivals' comparative resource stocks and managers' bundling and deployment actions on competitive outcomes. Results indicate that both comparative advantages in resource stocks and managerial actions affect performance. However, their efficacy depends on contextual factors and the deployment flexibility of specific resources. Thus, resource management actions are critical to achieving and sustaining competitive advantage.
This paper tests a model in which group identity in the form of religious intensity functions as ex post insurance. I exploit relative price shocks induced by the Indonesian financial crisis to ...demonstrate a causal relationship between economic distress and religious intensity (Koran study and Islamic school attendance) that is weaker for other forms of group identity. Consistent with ex post insurance, credit availability reduces the effect of economic distress on religious intensity, religious intensity alleviates credit constraints, and religious institutions smooth consumption shocks across households and within households, particularly for those who were less religious before the crisis.
Using a large database of analysts' target prices issued over the period 1997-1999, we examine short-term market reactions to target price revisions and long-term comovement of target and stock ...prices. We find a significant market reaction to the information contained in analysts' target prices, both unconditionally and conditional on contemporaneously issued stock recommendation and earnings forecast revisions. Using a cointegration approach, we analyze the long-term behavior of market and target prices. We find that, on average, the one-year-ahead target price is 28 percent higher than the current market price.
To measure the impact of foreclosures on nearby property values, we use a database that combines data on 1997 and 1998 foreclosures with data on neighborhood characteristics and more than 9,600 ...single-family property transactions in Chicago in 1999. After controlling for some 40 characteristics of properties and their respective neighborhoods, we find that foreclosures of conventional single-family (one- to four-unit) loans have a significant impact on nearby property values. Our most conservative estimates indicate that each conventional foreclosure within an eighth of a mile of a single-family home results in a decline of 0.9 percent in value.
Cumulatively, this means that, for the entire city of Chicago, the 3,750 foreclosures that occurred in 1997 and 1998 are estimated to have reduced nearby property values by more than $598 million, for an average of $159,000 per foreclosure. This does not include effects on the value of condominiums, multifamily rental properties, and commercial buildings.
Retail gasoline pricing: What do we know? Hosken, Daniel S.; McMillan, Robert S.; Taylor, Christopher T.
International journal of industrial organization,
11/2008, Letnik:
26, Številka:
6
Journal Article
Recenzirano
We use a data set consisting of a three year panel of prices from a sample of gasoline stations located in suburban Washington DC and a corresponding census of the region's stations to develop three ...new empirical findings about retail gasoline pricing. First, while average retail margins vary substantially over time (by more than 50% over the three years we analyze), the shape of the margin distribution remains relatively constant. Second, there is substantial heterogeneity in pricing behavior: stations charging very low or very high prices are more likely to maintain their pricing position than stations charging prices near the mean. Third, retail gasoline pricing is dynamic. Despite the heterogeneity in station pricing behavior, stations frequently change their relative pricing position in this distribution, sometimes dramatically. We then relate these three findings to relevant theories of retail pricing. While many models of retail pricing are consistent with some of our findings, we find that all have serious shortcomings.
While energy intensity in China has fallen almost continuously since the onset of economic reform in the late 1970s, beginning in 1996 the data show a striking decline in China’s absolute level of ...energy use. Most of this decline can be accounted for by falling coal consumption in the industrial sector. In order to investigate this energy puzzle, this paper employs a unique set of panel data for approximately 2500 of China’s most energy intensive large and medium-sized industrial enterprises during 1997–1999. Rising relative energy prices, research and development expenditures, and ownership reform in the enterprise sector, as well as shifts in China’s industrial structure, emerge as the principal drivers of China’s declining energy intensity and use.
The aim of this paper is to study whether a child's schooling choices are affected by the schooling choices of other children. Identification is based on a randomized targeted intervention that ...grants a cash subsidy conditional on school attendance to a subgroup of eligible children within small rural villages in Mexico (PROGRESA). This policy change spills over to ineligible children if social interactions are relevant. Results indicate that the eligible children tend to attend school more frequently, and the ineligible children acquire more schooling when the subsidy is introduced in their local village. Moreover, the overall effect of PROGRESA on eligible children is the sum of a direct effect due to cash transfers and an indirect effect due to changes in peer group schooling. Interestingly, the social interactions effect is almost as important as the direct effect.
This paper investigates managers' economic incentives for voluntary reporting on risk management and internal control using a sample of publicly traded firms in The Netherlands in the late 1990s. In ...this particular setting, internal control reporting was voluntary and covered a wide business-based approach as defined in key internal control frameworks. We create an index to measure the extent of disclosure by identifying six reportable items related to internal control. Regarding managers' incentives to report, we hypothesize that voluntary disclosure increases with the extent of information and agency problems, as proxied by management and block holder ownership and financial leverage. Supporting our hypotheses, we find a negative relationship between the extent of internal control disclosure and management and block holder ownership, and positive relationship between the extent of disclosure and financial leverage. We interpret these findings as evidence for a conscious trade-off by managers, which is linked to the costs and benefits of making internal control disclosures. Additionally, we find some evidence that the extent of disclosure varies with firms' inherent risk exposure, as proxied by a number of firm operating characteristics. One implication of our findings is that regulators may wish to allow firms flexibility in their internal control reporting choice, as firms take a broad approach to internal control that goes beyond SOX-based regulations, and tailor their internal control reports to suit their specific environments.
This paper uses data from a randomized housing-mobility experiment to study the effects of relocating families from high- to low-poverty neighborhoods on juvenile crime. Outcome measures come from ...juvenile arrest records taken from government administrative data. Our findings seem to suggest that providing families with the opportunity to move to lower-poverty neighborhoods reduces violent criminal behavior by teens.
Can a government credibly promise not to bailout firms whose failure would have major negative systemic consequences? Our analysis of Korea's 1997-98 crisis suggests an answer: No. Despite a general ..."no bailout" policy during the crisis, the largest Korean corporate groups -- facing severe financial and governance problems -- could still borrow heavily from households by issuing bonds at prices implying very low expected default risk. The evidence suggests "too big to fail" beliefs were not eliminated by government promises because investors believed that this policy was not time consistent. Subsequent bailouts confirmed the market view that creditors would be protected.
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