Mostrando recursos 1 - 20 de 546

  1. The Performance of Corporate Alliances: Evidence from Oil and Gas Drilling in the Gulf of Mexico

    Beshears, John Leonard
    I use data on oil and gas drilling in the Gulf of Mexico to measure how a corporate alliance—a group of firms that jointly develops an offshore tract—performs relative to a solo firm. I employ a regression discontinuity strategy based on bids in first-price sealed-bid auctions for the rights to develop leases. By focusing on leases where one organizational form narrowly outbids the other, I measure drilling outcomes while controlling for the endogenous matching of projects and organizational forms. Solo firm leases are less profitable than alliance leases because alliance members combine their information and expertise.

  2. Beyond Beta-Delta: The Emerging Economics of Personal Plans

    Beshears, John Leonard; Milkman, Katherine L.; Schwartzstein, Joshua Reid
    People make personal plans regarding whether, when, where, and how to undertake certain actions. We discuss three questions related to personal plans. First, what are the effects of plans on behavior? Second, when are plans formed? Third, how do plans deviate from optimality? For each of these questions, we (a) offer a brief overview of research that sheds light on the issue and (b) identify gaps in current knowledge. We emphasize connections to the growing theoretical literature that gives personal plans a substantive role, but we conclude that more research is needed, especially on the latter two questions we cover.

  3. Making Transparency Transparent: The Evolution of Observation in Management Theory

    Bernstein, Ethan S
    Observation is key to management scholarship and practice. Yet a holistic view of its role in management has been elusive, in part due to shifting terminology. The current popularity of the term “transparency” provides the occasion for a thorough review, which finds (a) a shift in the object of observation from organizational outcomes to the detailed individual activities within them; (b) a shift from people observing the technology to technology observing people; and (c) a split in the field, with managers viewing observation almost entirely from the observer’s perspective, leaving the perspective of the observed to the realm of scholarly...

  4. Celebrating the Work of Keith Murnighan

    Conlon, Donald E.; Bazerman, Max H.; Malhotra, Deepak; Pillutla, Madan M.
    In this tribute, four scholars highlight research published during the career of 2015 International Association for Conflict Management Lifetime Achievement Award Winner Keith Murnighan. In the four sections of the paper, each scholar highlights one of Keith’s published papers and discusses the impact it had on them, as well as the field of organizational behavior more generally. The authors close by going beyond each article to identify common themes that emerge across the works.

  5. Reinventing the American Wine Industry: Marketing Strategies and the Construction of Wine Culture

    Oda, Ai
    This working paper examines the remarkable growth of wine consumption in the United States since the 1960s. The country is now the largest wine consumer in the world, exceeding the wine-producing European countries such as France and Italy, which had long dominated world markets. The paper identifies the late 1960s and 1970s as the major turning point by analyzing the role of businesses in reinventing the image of wine from a cheap and very alcoholic beverage to a sophisticated natural product, and a fine accompaniment for gourmet food. By creating wine as a symbol of social status, the reimagined wine...

  6. Equality and Equity in Compensation

    Bao, Jiayi; Wu, Andy
    Equity compensation is widely used for incentivizing skilled employees, particularly in new technology businesses. Traditional theories explaining why firms offer equity suggest that workers with higher rank should receive compensation packages more heavily weighted in equity. However, we observe the puzzle that many firms adopt an equality-in-equity strategy: they offer different cash salaries across all jobs but the same equity compensation. We propose a behavioral theory of domain-contingent inequality aversion to explain this finding: we argue that workers view salary and equity as two domains and are more inequality averse in the equity domain. Inequality in equity has a negative...

  7. High-Skilled Migration and Agglomeration

    Kerr, Sari Pekkala; Kerr, William Robert; Özden, Çağlar; Parsons, Christopher
    This paper reviews recent research regarding high-skilled migration. We adopt a data-driven perspective, bringing together and describing several ongoing research streams that range from the construction of global migration databases, to the legal codification of national policies regarding high-skilled migration, to the analysis of patent data regarding cross-border inventor movements. A common theme throughout this research is the importance of agglomeration economies for explaining high-skilled migration. We highlight some key recent findings and outline major gaps that we hope will be tackled in the near future.

  8. Innovation Outcomes in a Distributed Organization: Intra-Firm Mobility and Access to Resources

    Choudhury, Prithwiraj
    Prior research has established a relation between intra-firm mobility and innovation outcomes at distributed organizations. The literature has also uniformly agreed on the mechanism underlying this relationship: the sharing of tacit knowledge and recombination of ideas that occurs because of intra-firm mobility. But a second mechanism may also be at work: intra-firm mobility might help distant employees secure access to resources for their innovative projects. Using unique data on travel, employment, and patenting for 1,315 inventors at the Indian R&D center of a Fortune 50 multinational, I find that intra-firm mobility in the form of short-duration business trips from a...

  9. Sink or Swim: The Role of Workplace Context in Shaping Career Advancement and Human-Capital Development

    Chattopadhyay, Shinjinee; Choudhury, Prithwiraj
    We develop and test predictions on how early-career challenges arising from the workplace context affect short- and long-term career advancement of individuals. Typically an organization’s decision to deploy a manager to one of several possible contexts is endogenous to unobservable factors, and selection makes it challenging to disentangle the effect of workplace context on individual career advancement. We work around this problem by studying an organization, the Indian Administrative Services, which deploys entry-level managers quasi-randomly across India. We find that managers deployed to more challenging contexts early in their careers experience faster career advancement in the short term. We present...

  10. How Elastic Are Preferences for Redistribution? Evidence from Randomized Survey Experiments

    Kuziemko, Ilyana; Norton, Michael Irwin; Saez, Emmanuel; Stantcheva, Stefana Pentcheva
    We analyze randomized online survey experiments providing interactive, customized information on U.S. income inequality, the link between top income tax rates and economic growth, and the estate tax. The treatment has large effects on views about inequality but only slightly moves tax and transfer policy preferences. An exception is the estate tax—informing respondents of the small share of decedents who pay it doubles support for it. The small effects for all other policies can be partially explained by respondents' low trust in government and a disconnect between concerns about social issues and the public policies meant to address them.

  11. Does "Liking" Lead to Loving? The Impact of Joining a Brand's Social Network on Marketing Outcomes

    John, Leslie Kathryn; Emrich, Oliver; Gupta, Sunil; Norton, Michael Irwin
    Does “liking” a brand on Facebook cause a person to view it more favorably? Or is “liking” simply a symptom of being fond of a brand? We disentangle these possibilities and find evidence for the latter: brand attitudes and purchasing are predicted by consumers’ preexisting fondness for brands and are the same regardless of when and whether consumers “like” brands. In addition, we explore possible second-order effects, examining whether “liking” brands might cause consumers’ friends to view that brand more favorably. When consumers see that a friend has “liked” a brand, they are less likely to buy the brand relative...

  12. Management as a Technology?

    Bloom, Nicholas; Sadun, Raffaella; Van Reenen, John
    Are some management practices akin to a technology that can explain company and national productivity, or do they simply reflect contingent management styles? We collect data on core management practices from over 11,000 firms in 34 countries. We find large cross-country differences in the adoption of basic management practices, with the US having the highest size-weighted average management score. We present a formal model of “Management as a Technology", and structurally estimate it using panel data to recover parameters including the depreciation rate and adjustment costs of managerial capital (both found to be larger than for tangible non-managerial capital). Our...

  13. Entrepreneurs and the Co-Creation of Ecotourism in Costa Rica

    Jones, Geoffrey G.; Spadafora, Andrew
    Between the 1970s and the 2000s Costa Rica became established as the world’s leading ecotourism destination. This working paper suggests that although Costa Rica benefited from biodiversity and a pleasant climate, the country’s preeminence in ecotourism requires more than a natural resource endowment explanation. The paper argues that the ecotourism industry was a co-creation of the public, private, and tertiary sectors. While the role of the government and conservation NGOs is acknowledged in the existing literature, this study draws attention to the critical role of small entrepreneurs. Making extensive use of oral history, the working paper demonstrates the role of...

  14. Theory of Machine: When Do People Rely on Algorithms?

    Logg, Jennifer Marie
    Algorithms--scripts for mathematical calculations--are powerful. Even though algorithms often outperform human judgment, people resist allowing a numerical formula to make decisions for them (Dawes, 1979). Nevertheless, people increasingly depend on algorithms to inform their decisions. Eight experiments examined trust in algorithms. Experiments 1A and 1B found that advice influenced participants more when they thought it came from an algorithm than when they thought it came from other people. This effect was robust to presenting the advisor jointly or separately (Experiment 2). Experiment 3 tested a moderator; excessive confidence in one’s own knowledge attenuated reliance on algorithms. These tests are important...

  15. Precautionary Savings in Stocks and Bonds

    Pflueger, Carolin; Siriwardane, Emil Nuwan; Sunderam, Aditya Vikram
    We document a strong and robust relation between the one-year real rate and precautionary savings motives, as measured by the stock market. Our novel proxy for precautionary savings, based on the difference in valuations between low- and high-volatility stocks, explains 37% of variation in the real rate. In addition, the real rate forecasts returns on the low-minus-high volatility portfolio, though it appears unrelated with measures of the quantity of risk. Our results suggest that precautionary savings motives, and thus the real rate, are driven by time-varying attitudes towards risk. We rationalize these findings in a stylized model with segmented investor...

  16. Relative Performance Benchmarks: Do Boards Get It Right?

    Ma, Paul; Shin, Jee Eun; Wang, Changyi Chang-Yi
    Standard principal-agent models suggest that boards design incentive contracts that filter out common shocks in performance to motivate costly effort from the CEO―a process entailing the judicious selection of benchmarks for relative performance evaluation (RPE). We evaluate the efficacy of firms' chosen RPE benchmarks and document that, relative to a normative benchmark, index-based benchmarks perform 14% worse in their time-series return-regression R2 and 16% worse in measurement error variance; firms choosing specific peers only modestly under-perform. Structural estimates suggest that, absent frictions, the underperformance of index-based benchmarks imply a performance penalty of 106-277 basis points in annual returns. Consistent with...

  17. Alternative Paths of Green Entrepreneurship: The Environmental Legacies of the North Face’s Doug Tompkins and Patagonia’s Yvon Chouinard

    Jones, Geoffrey G.; Gettinger, Ben
    This working paper examines the impact of two entrepreneurs who offered alternative paths to reach their shared goal of a more sustainable world. Yvon Chouinard and Doug Tompkins were respective founders of the prominent outdoor apparel brands Patagonia and The North Face. Chouinard pursued incremental sustainability strategies over decades at his firm. Tompkins, who went on to manage the fashion company Esprit, opted in 1989 to exit business entirely having concluded that capitalism could never be sufficiently sustainable to reverse environmental degradation. He purchased 1.5 million hectares of land in Chile and Argentina which he converted to protected areas and...

  18. Managers’ cultural background and disclosure attributes

    Brochet, Francois; Miller, Gregory S.; Naranjo, Patricia; Yu, Gwen
    We examine how a manager’s ethnic cultural background affects managers’ communication with investors. Using a sample of earnings conference calls transcripts with 26,430 executives from 42 countries, we find that managers from ethnic groups that have a more individualistic culture (i) use a more optimistic tone, (ii) exhibit greater self-reference, and (iii) make fewer apologies in their disclosure narratives. Managers’ ethnic culture has a lasting effect on their narratives—the effects persist even for executives who are later exposed to different ethnic cultures through work experience. The effect of ethnic heritage is observed in dialogues that reflect real time interactions (i.e.,...

  19. Corporate Purpose and Financial Performance

    Gartenberg, Claudine; Prat, Andrea; Serafeim, Georgios
    We construct a measure of corporate purpose within a sample of US companies based on approximately 500,000 survey responses of worker perceptions about their employers. We find that this measure of purpose is not related to financial performance. However, high purpose firms come in two forms: firms that are characterized by high camaraderie between workers and firms that are characterized by high clarity from management. We document that firms exhibiting both high purpose and clarity have systematically higher future accounting and stock market performance, even after controlling for current performance, and that this relation is driven by the perceptions of...

  20. Patent Disclosures and Standard-Setting

    Lerner, Joshua; Tabakovic, Haris; Tirole, Jean
    A key role of standard setting organizations (SSOs) is to aggregate information on relevant intellectual property (IP) claims before deciding on a standard. This article explores the firms’ strategies in response to IP disclosure requirements—in particular, the choice between specific and generic disclosures of IP—and the optimal response by SSOs, including the royalty rate setting. We show that firms with a stronger downstream presence are more likely to opt for a generic disclosure, as are those with lower quality patents. We empirically examine patent disclosures made to seven large SSOs, and find results consistent with theoretical predictions.

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