Working Papers

These papers are working drafts of research which often appear in final form in academic journals. The published versions may differ from the working versions provided here.

Charles M. C. Lee, Yuanyu Qu, Tao Shen
October 2019

We study firms that go public through reverse mergers (RMs) versus initial public offerings (IPOs) in China. Using a manually assembled data set, we show...

Min Lui, László Pólos, Michael T. Hannan
September 6, 2019

This paper deals with a central challenge in organizational sociology: to predict adaptive capabilities in changing environments. We address theoretical and methodological gaps in existing research. First, whereas researchers have long acknowledged that the evolution...

Katherine Casey, Abou Bakarr Kamara, Niccolo Meriggi
August 29, 2019

Are ordinary citizens or political party leaders better positioned to select candidates?  While the direct vote primary system in the United States lets citizens choose, it is exceptional, as the vast majority of democracies rely...

Darrell Duffie, Samuel Antill
August 1, 2019

In our modeled setting, we show that the now-common practice of size discovery detracts from overall Financial market efficiency. A continually operating exchange uses double auctions to discover prices and clear markets. At each of...

Hanno Lustig, Arvind Krishnamurthy
August 1, 2019

The U.S. dollar exchange rate clears the global market for dollar-denominated safe assets. We find that shifts in the demand and supply of safe dollar assets are important drivers of variation in the dollar exchange...

Charles M. C. Lee, Christina Zhu
August 2019

We use trade-level data to examine the role of actively managed funds (AMFs) in earnings news dissemination.   AMFs trade 170 percent more on earnings announcement (EA) days than on non-EA days.  Abnormal AMF participation is...

Charles A. O’Reilly, Bernadette Doerr
August 2019

Organizational researchers have become increasingly concerned with the potentially destructive consequences of narcissistic leadership. Evidence indicates that grandiose narcissists both aspire to and frequently achieve leadership roles in organizations. However, because narcissists are principally motivated...

Charles M. C. Lee, Yanruo Wang, Qinlin Zhong
August 2019

We develop a Loan Portfolio Risk (LPR) variable that measures time-varying volatility in default risk for a portfolio of bank loans.  An Equity-to-LPR ratio (ELPR) is incrementally important in predicting bank failure up to five...

Julien Clement
August 2019

This study builds a theory of collective sensemaking in the face of environmental change. Our arguments build upon a well-known observation about the division of labor, which typically turns organizations into “nearly decomposable” systems of...

Jonathan Johannemann, Vitor Hadad, Susan Athey, Stefan Wager
August 2019

Many learning algorithms require categorical data to be transformed into real vectors before it can be used as input. Often, categorical variables are encoded as one-hot (or dummy) vectors. However, this mode of representation can...

Charles A. O’Reilly, Jennifer Chatman, Bernadette Doerr
August 2019

Research has shown that organizational culture can affect firm performance and that a leader’s personality can affect organizational culture. We examine how a leader’s level of narcissism affects two fundamental aspects of organizational culture -...

Paulo Somaini
July 9, 2019

This paper provides a positive identification result for first-price procurement models with asymmetric bidders, statistically dependent private signals,
and interdependent costs. When bidders are risk neutral, the model’s payoff-relevant primitives are: (i) the joint...

David M. Kreps, Walter Schachermayer
July 2019

We examine Kreps’ (2019) conjecture that optimal expected utility in the classic Black–Scholes–Merton (BSM) economy is the limit of optimal expected utility for a sequence of discrete-time economies that “approach” the BSM economy in a natural...

Katherine Casey
June 28, 2019

Seminal studies show that naïve lab participants accurately predict who wins real-world elections based solely on candidate photos. It is unclear what this implies for the health of democracy without knowing whether candidates who look...

Philip G. Berger, Jung Ho Choi, Sorabh Tomar
June 9, 2019

Does decomposing cost of goods sold entail significant competitive costs? We examine this question using a relaxation of disaggregated manufacturing cost disclosure requirements in Korea. Our survey evidence indicates managers perceive these disclosures to provide...

David M. Kreps, Walter Schachermayer
June 2019

We prove a fundamental result concerning the connection between discrete-time models of financial markets and the celebrated Black–Scholes–Merton continuous-time model in which “markets are complete.” Specifically, we prove that if (a) the probability law of a...

Rob Donnelly, Francisco R, Ruiz, David Blei, Susan Athey
June 2019

This paper proposes a method for estimating consumer preferences among discrete choices, where the consumer chooses at most one product in a category, but selects from multiple categories in parallel. The consumer’s utility is additive...

Claudia Robles-Garcia
May 30, 2019

Mortgage brokers acting as expert advisors for households often receive commission payments from lenders. This paper empirically analyzes the effects on welfare and market structure of regulations restricting this form of broker compensation. Loan-level data...