Mostrando recursos 41 - 60 de 223

  1. Stock Price Synchronicity and Material Sustainability Information

    Grewal, Jody; Hauptmann, Clarissa; Serafeim, Georgios
    We examine if, and under what conditions, disclosure of sustainability information identified as investor relevant by market-driven innovations in accounting standard-setting, is associated with stock prices reflecting more firm-specific information and thereby lower synchronicity with market and industry returns. We find that firms voluntarily disclosing more sustainability information, identified as material by the Sustainability Accounting Standards Board (SASB), have lower stock price synchronicity. This result is stronger for firms with higher exposure to sustainability issues, institutional and socially responsible investment fund ownership and coverage from analysts with less firm-specific experience and lower portfolio complexity. Moreover, we find intra-industry information transfers...

  2. Designing an Agile Software Portfolio Architecture: The Impact of Coupling on Performance

    Maccormack, Alan D.; Lagerstrom, Robert; Mocker, Martin; Baldwin, Carliss Young
    The modern industrial corporation encompasses a myriad of different software applications, each of which must work in concert to deliver functionality to end-users. However, the increasingly complex and dynamic nature of competition in today’s product-markets dictates that this software portfolio be continually evolved and adapted, in order to meet new business challenges. This ability – to rapidly update, improve, remove, replace, and reimagine the software applications that underpin a firm’s competitive position – is at the heart of what has been called IT agility. Unfortunately, little work has examined the antecedents of IT agility, with respect to the choices a...

  3. Do All Your Detailing Efforts Pay Off? Dynamic Panel Data Methods Revisited

    Chung, Doug Jin; Kim, Byungyeon; Park, Byoung
    We estimate a sales response model to evaluate the short- and long-term value of pharmaceutical sales representatives’ detailing visits to physicians of different types. By understanding the dynamic effect of sales calls across heterogeneous doctors, we provide guidance on the design of optimal call patterns for route sales. Our analyses reveal that the long-term persistence effect of detailing is more pronounced for specialist physicians; the contemporaneous marginal effect is higher for generalists. Free samples have little effect on any type of physician. We also introduce a key methodological innovation to the marketing and economics literatures. We show that moment conditions—typically...

  4. Inventory Management for Mobile Money Agents in the Developing World

    Balasubramanian, Karthik; Drake, David Francis; Fearing, Douglas
    Mobile money systems, platforms built and managed by mobile network operators to allow money to be stored as digital currency, have burgeoned in the developing world as a mechanism to transfer money electronically. Mobile money agents exchange cash for electronic value and vice versa, forming the backbone of an emerging electronic currency ecosystem that has potential to connect millions of poor and “unbanked" people to the formal financial system. Unfortunately, low service levels due to agent inventory management are a major impediment to the further development of these ecosystems. This paper describes models for the agent's inventory problem, unique in...

  5. Task Selection and Workload: A Focus on Completing Easy Tasks Hurts Long-Term Performance

    KC, Diwas S.; Staats, Bradley R.; Kouchaki, Maryam; Gino, Francesca
    How individuals manage, organize, and complete their tasks is central to operations management. Recent research in operations focuses on how under conditions of increasing workload individuals can increase their service time, up to a point, in order to complete work more quickly. As the number of tasks increases, however, workers may also manage their workload by a different process – task selection. Drawing on research on workload, individual discretion, and behavioral decision making we theorize and then test that under conditions of increased workload individuals may choose to complete easier tasks in order to manage their load. We label this...

  6. Decoding Inside Information

    Cohen, Lauren Harry; Malloy, Christopher James; Pomorski, Lukasz
    Using a simple empirical strategy, we decode the information in insider trading. Exploiting the fact that insiders trade for a variety of reasons, we show that there is predictable, identifiable "routine" insider trading that is not informative for the future of firms. Stripping away the trades of routine insiders leaves a set of information-rich trades by "opportunistic" insiders that contain all the predictive power in the insider trading universe. A portfolio strategy that focuses solely on opportunistic traders yields value-weighted abnormal returns of 82 basis points per month, while the abnormal returns associated with routine traders are essentially zero. Further,...

  7. Evolution of land distribution in West Bengal 1967–2004: Role of land reform and demographic changes

    Bardhan, Pranab; Luca, Michael; Mookherjee, Dilip; Pino, Francisco
    This paper studies how land reform and population growth affect land inequality and landlessness, focusing particularly on indirect effects owing to their influence on household divisions and land market transactions. Theoretical predictions of a model of household division and land transactions are successfully tested using household panel data from West Bengal spanning 1967–2004. The tenancy reform lowered inequality through its effects on household divisions and land market transactions, but its effect was quantitatively dominated by inequality-raising effects of population growth. The land distribution program lowered landlessness, but this was partly offset by targeting failures and induced increases in immigration.

  8. Reexamining staggered boards and shareholder value

    Cohen, Alma; Wang, Changyi Chang-Yi
    Cohen and Wang (2013) (CW2013) provide evidence consistent with market participants perceiving staggered boards to be value reducing. Amihud and Stoyanov (2016) (AS2016) contests these findings, reporting some specifications under which the results are not statistically significant. We show that the results retain their significance under a wide array of robustness tests that address the concerns expressed by AS2016. Our empirical findings reinforce the conclusions of CW2013.

  9. Why Do Firms Have “Purpose”? The Firm's Role as a Carrier of Identity and Reputation

    Henderson, Rebecca M.; Steen, Eric Van den
    Why do so many firms publicly espouse a "purpose" beyond simple profit maximization? And why do so many managers and employees appear to care deeply about this purpose and to believe that it is critically important? In this paper we argue that the conventional answers to this question fail to account for the fact that employees usually care whether the pursuit of purpose is authentic and that the embrace of purpose often affects even employees whose own work is remote from the activities that put the purpose into action. In this paper we propose instead that firms may adopt a...

  10. The mirroring hypothesis: theory, evidence, and exceptions

    Colfer, Lyra J.; Baldwin, Carliss Young
    The mirroring hypothesis predicts that organizational ties within a project, firm, or group of firms (e.g., communication, collocation, employment) will correspond to the technical dependencies in the work being performed. This article presents a unified picture of mirroring in terms of theory, evidence, and exceptions. First, we formally define mirroring and argue that it is an approach to technical problem-solving that conserves scarce cognitive resources. We then review 142 empirical studies, divided by organizational form into (i) industry studies, (ii) firm studies, and (iii) studies of open collaborative projects. The industry and firm studies indicate that mirroring is a prevalent...

  11. Does front-loading taxation increase savings? Evidence from Roth 401(k) introductions

    Beshears, John Leonard; Choi, James J.; Laibson, David I.; Madrian, Brigitte
    Can governments increase private savings by taxing savings up front instead of in retirement? Roth 401(k) contributions are not tax-deductible in the contribution year, but withdrawals in retirement are untaxed. The more common before-tax 401(k) contribution is tax-deductible in the contribution year, but both principal and investment earnings are taxed upon withdrawal. Using administrative data from eleven companies that added a Roth contribution option to their existing 401(k) plan between 2006 and 2010, we find no evidence that total 401(k) contribution rates differ between employees hired before versus after the Roth introduction, which means that the amount of retirement consumption...

  12. Racial Discrimination in the Sharing Economy: Evidence from a Field Experiment

    Edelman, Benjamin Gordon; Luca, Michael; Svirsky, Daniel Alejandro
    In an experiment on Airbnb, we find that applications from guests with distinctively African-American names are 16% less likely to be accepted relative to identical guests with distinctively White names. Discrimination occurs among landlords of all sizes, including small landlords sharing the property and larger landlords with multiple properties. It is most pronounced among hosts who have never had an African-American guest, suggesting only a subset of hosts discriminate. While rental markets have achieved significant reductions in discrimination in recent decades, our results suggest that Airbnb’s current design choices facilitate discrimination and raise the possibility of erasing some of these...

  13. Does Aggregated Returns Disclosure Increase Portfolio Risk Taking?

    Beshears, John Leonard; Choi, James J.; Laibson, David I.; Madrian, Brigitte
    Many experiments have found that participants take more investment risk if they see returns less frequently, see portfolio-level returns (rather than each individual asset’s returns), or see long-horizon (rather than one-year) historical return distributions. In contrast, we find that such information aggregation treatments do not affect total equity investment when we make the investment environment more realistic than in prior experiments. Previously documented aggregation effects are not robust to changes in the risky asset’s return distribution or the introduction of a multi-day delay between portfolio choice and return realizations.

  14. Crowdsourcing City Government: Using Tournaments to Improve Inspection Accuracy

    Glaeser, Edward Ludwig; Hillis, Andrew Blair; Kominers, Scott Duke; Luca, Michael
    The proliferation of big data makes it possible to better target city services like hygiene inspections, but city governments rarely have the in-house talent needed for developing prediction algorithms. Cities could hire consultants, but a cheaper alternative is to crowdsource competence by making data public and offering a reward for the best algorithm. A simple model suggests that open tournaments dominate consulting contracts when cities can tolerate risk and when there is enough labor with low opportunity costs. We also report on an inexpensive Boston-based restaurant tournament, which yielded algorithms that proved reasonably accurate when tested "out-of-sample" on hygiene inspections.

  15. Like a Boss: How Corporate Negotiators Would Handle Nuclear Talks With Iran

    Sebenius, James Kimble
    While the Obama team deserves high marks for launching the interim talks, its approach doesn't sell the upside of a comprehensive deal persuasively enough to transform more Iranian skeptics into active supporters—a necessary condition for success if there is an acceptable deal at the next stage. To sway skeptics, I recommend a specific "campaign" to dramatize the value of a deal. Beyond wooing skeptics, a strategy to build a "winning coalition" behind a deal must thwart determined Iranian blockers who will act to prevent meaningful concessions. After six months of talks, there could easily be positive atmospherics but little real...

  16. The Role of Organizational Scope and Governance in Strengthening Private Monitoring

    Pierce, Lamar; Toffel, Michael Wayne
    Governments and other organizations often outsource activities to achieve cost savings from market competition. Yet such benefits are often accompanied by poor quality resulting from moral hazard, which can be particularly onerous when outsourcing the monitoring and enforcement of government regulation. In this paper, we argue that the considerable moral hazard associated with private regulatory monitoring can be mitigated by understanding conflicts of interest in the monitoring organizations' product/service portfolios and by the effects of their private governance mechanisms. These organizational characteristics affect the stringency of monitoring through reputation, customer loyalty, differential impacts of government sanctions, and the standardization and...

  17. Direct versus Indirect Colonial Rule in India: Long-Term Consequences

    Iyer, Lakshmi
    This paper compares economic outcomes across areas in India that were under direct British colonial rule with areas that were under indirect colonial rule. Controlling for selective annexation using a specific policy rule, I find that areas that experienced direct rule have significantly lower levels of access to schools, health centers, and roads in the postcolonial period. I find evidence that the quality of governance in the colonial period has a significant and persistent effect on postcolonial outcomes.

  18. Welfare Payments and Crime

    Foley, C.
    Analysis of daily reported incidents of major crimes in twelve U.S. cities reveals an increase in crime over the course of monthly welfare payment cycles. This increase reflects an increase in crimes that are likely to have a direct financial motivation as opposed to other kinds of crime. Temporal patterns in crime are observed in jurisdictions in which disbursements are focused at the beginning of monthly welfare payment cycles and not in jurisdictions in which disbursements are relatively more staggered. These findings indicate that welfare beneficiaries consume welfare-related income quickly and then attempt to supplement it with criminal income.

  19. The Variance of Non-Parametric Treatment Effect Estimators in the Presence of Clustering

    Hanson, Samuel; Sunderam, Adi
    Nonparametric estimators of treatment effects are often applied in settings where clustering may be important. We provide a general methodology for consistently estimating the variance of a large class of nonparametric estimators, including the simple matching estimator, in the presence of clustering. Software for implementing our variance estimator is available in Stata.

  20. Traveling Agents: Political Change and Bureaucratic Turnover in India

    Iyer, Lakshmi; Mani, Anandi
    We develop a framework to empirically examine how politicians with electoral pressures control bureaucrats with career concerns and the consequent implications for bureaucrats' career investments. Unique microlevel data on Indian bureaucrats support our key predictions. Politicians use frequent reassignments (transfers) across posts of varying importance to control bureaucrats. High-skilled bureaucrats face less frequent political transfers and lower variability in the importance of their posts. We find evidence of two alternative paths to career success: officers of higher initial ability are more likely to invest in skill, but caste affinity to the politician's party base also helps secure important positions.

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