Working Papers

This paper provides some empirical generalizations regarding how the relative prices of competing brands affect the cross-price effects between them. Particular focus is on the asymmetric price effect, which states that the price promotion by a…

A number of theories have been proposed to explain the medium-term momentum in stock returns identified by Jefadeesh and Titman (1993). We test one such theory based on the gradual-information-diffusion of Hong and Stein (1997)—and establish…

This paper examines the competitive effects of recent commercial bank entry into the corporate debt underwriting market. In particular, the effects of bank entry on underwriter spreads, ex-ante yields, and market concentration. We find that…

We find that brand value estimates reported by Financial World are significantly positively related to prices and returns, incremental to other accounting variables. Concerns about brand value estimate reliability underlie lack of financial…

In this paper we document that stocks highly recommended by analysts outperform the market, while those that are unfavorably recommended underperform. Our findings are based on an extensive analysis of over 360,000 analyst recommendations from…

Foreign portfolio flows may reflect deep changes in the functioning of an emerging market economy and its capital markets. Using a database of monthly net U.S. equity flows, we investigate the relation of these flows to the behavior of equity…

A widely deplored bias in organizational decision-making is attributing an accident simply to “human error” and them attempting to correct the problem through changing employees rather than changing the technological or organizational environment…

US joint ventures with Asian firms often flounder because cultural differences impede the smooth resolution of conflicts between managers. In a survey of young managers in the US, PRC, Philippines, and India, we find support for two hypotheses…

Measuring the integration of world capital markets is notoriously difficult. For example, regulatory changes which appear comprehensive may have little impact on the functioning of the capital market if they fail to lead to foreign portfolio…

We develop a model of the extent to which multinational companies use global account management (GAM), its determinants, and its effects on performance. A study of 191 senior executives’ perceptions, using structural equations modeling, shows…

This paper examines how founding conditions shape subsequent organizational evolution— specifically, the proliferation of management and administrative jobs. Analyzing quantitative and qualitative information on a sample of young technology start…

Using a sample of banks, this study examines the capital market pricing implications of discretionary and nondiscretionary components of loan fair value estimates. We conduct our analysis in two stages. First, we determine the discretionary…

Stock market liberalizations lead private investment booms. In a sample of 11 developing countries that liberalized, 9 experience growth rates of private investment above their non-liberalization median in the first year after liberalizing. In…

The paper shows that under realistic conditions the Internet does not always increase price competition. We explore the effect of the Internet on consumers’ search behavior in a competitive setting, where consumers need to gather information on…

This paper presents a theory of parliamentary systems that incorporates electoral, government formation, and legislative institutions and focuses on the strategic opportunities inherent in those institutions. The electoral system is proportional…

In this chapter, we investigate the cognitive and motivational underpinnings of attitudes toward social and organizational systems. Specifically, we draw on the theory of lay epistemics to address individual and situational variations in the…

This research examines the persuasive impact of different types of emotional appeals on members of collective versus individualist cultures. The results of two experiments demonstrated that ego-focused (e.g., pride, happiness) versus other-…

Currency fluctuations provide a substantial source of movements in relative prices that is largely exogenous to the firm. This paper evaluates empirically and theoretically the importance of exchange rate movements on job reallocation across and…

We were honored to receive the 1996 prize of the Strategic Management Society (in cooperation with John Wiley and Sons) for our 1988 paper, “First-Mover Advantages.” It is customary for the award recipients to write a brief article reflecting on…

Traditional approaches to valuing equities have largely focused on the Dividend Discount Model. It may be hard to reliably estimate dividend processes in small samples and market participants focus primarily on earnings and other accounting…