Working Papers

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SSRN Research Paper Series

The Social Science Research Network’s Research Paper Series includes working papers produced by Stanford GSB the Rock Center.

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The Boundaries of the Firm Revisited

John Roberts (1945–2026), Bengt Holmstrom
1998

Both Transaction Cost Economics and Property Rights Theories offer explanations of the boundaries of the firm based on ideas of ex post bargaining and hold-up. These theories are quite distinct in their empirical predictions, but neither offers a…

The Characteristics and Valuation of Loss Reserves of Property Casualty Insurers

Maureen McNichols, William H. Beaver (1940–2024)
1998

The extent to which management influences accounting recognized in financial statements and the extent to which investors are able to identify such influence are fundamental questions in financial reporting research. This study contributes to…

The Closing of the American Mind Versus the Closing of the Chinese Mind: The Impact of Need for Cognitive Closure on Social Attribution Varies Across Cultures as a Function of Implicit Theories

Michael W. Morris, Chi-yue Chiu, Ying-yi Hong, Tanya Menon
1998

We propose that need for closure (NFC) leads attributors to respond to an ambiguous social stimulus by increasing reliance on implicit theories received from acculturation. Hence, the influence of NFC should be shaped by the knowledge structures…

The Evolution of Norms

Jonathan Bendor (1950–2025), Piotr Swistak
1998

This paper analyzes the emergence of norms from an evolutionary perspective. It is hypothesized that norms diffuse not necessarily because they are functional for the communities in which they are embedded but because in certain selection…

The Predictive Power of Internet-Based Product Concept Testing Using Visual Depiction and Animation

V. “Seenu” Srinivasan, Ely Dahan
1998

We measure the predictive accuracy of Internet-based product concept testing that incorporates virtual prototypes of new products. The method employs a two-factor conjoint analysis of prototypes and prices to enable a design team to select the…

The Role of Book Value in Equity Valuation: Does the Stock Variable Merely Proxy for Relevant Past Flows?

Mohan Venkatachalam
1998

We propose an alternative explanation for the value-relevance of book value. Specifically, we suggest that book value can have an indirect role in valuation even under an earnings capitalization framework. We first show that past earnings are…

The Tobacco Deal

Jeremy I. Bulow, Paul Klemperer
1998

Abstract not available.

The Use and Performance Effect of Global Account Management: An Empirical Analysis Using Structural Equations Modeling

George S. Yip, David Bruce Montgomery (1938–2025), Belen Villalonga
1998

We develop a model of the extent to which multinational companies use global account management, its determinants, and its effect on performance. A study of 165 companies shows that use and performance effects are positively related to customers…

Visionaries, Managers, and Strategic Direction

Garth Saloner, Julio Rotemberg
1998

This paper shows that a firm’s ability to provide incentives for profitable innovation may be enhanced if it has a “visionary” CEO. We interpret “vision” likely evolution of the industry. The presence of such a bias is helpful when employees can…

When Social and Knowledge Ties Are Incongruent: Effects on Group Information Sharing

Deborah H. Gruenfeld, Margaret Ann Neale, Elizabeth Mannix, Katherine Williams
1998

This study investigates how congruence between social and knowledge ties affect group information sharing, specifically, the bias against sharing unique information (Stasser & Titus, 1985). Three-person groups composed of two familiar…

When is Criticism Not Constructive? The Roles of Fairness Perceptions and Attributions in Employee Rejection of Critical Supervisory Feedback

Kwok Leung, Steven K. Su, Michael Morris
1998

The effects of justice and dispositional attribution on reactions to negative supervisory feedback were examined in two studies. Study 1 showed that criticism delivered with greater interpersonal fairness resulted in more favorable dispositional…

Alternative Valuation Models and the Valuation Parameters of Property-Casualty Insurers' Share Prices

Elizabeth A. Demers
1997

This paper examines the value-relevance of various balance sheet items and earnings streams to the share prices of property-casualty (“P&C”) insurance companies under several alternative valuation model specifications. This study extends…

Asymmetric Volatility and Risk in Equity Markets

Geert Bekaert, Guojun Wu
1997

It appears that volatility in equity markets is asymmetric: returns and conditional volatility are negatively correlated. We provide a unified framework to simultaneously investigate asymmetric volatility at the firm and the market level and to…

Comparative Dynamics of Parliamentary Governments

David P. Baron
1997

This paper presents a dynamic theory of parliamentary governments that incorporates attributes of the institutional system in a country, exogenous events that shape parliamentary and electoral opportunities, and the strategies of the government…

Competitive Reactions and Conjecture: Issues and Prospects

Joel E. Urbany, David Bruce Montgomery (1938–2025)
1997

We review recent literature on competitive reactions and strategic thinking and offer several observations. Evidence is mounting that strategic thinking is an unnatural act, made difficult by natural individual biases and organizational…

Dimensions of Brand Personality

Jennifer Aaker
1997

While a considerable amount of research in personality psychology has been done to conceptualize human personality, identify the “Big Five” dimensions, and explore the meaning of each dimension, no parallel research has been conducted on brand…

Distributinal Characteristics of Emerging Market Returns and Asset Allocation

Tadas Viskanta, Cluade Erb
1997

The behavior of emerging market returns sharply differs from the behavior of developed equity market returns. Whereas forecasts of expected returns and volatilities in emerging markets have been extensively studied, we focus primarily on…

A Double Auction Model of Interdealer Trading

Ingrid M. Werner
1997

This paper models trading in a dealer market as a two-stage game. In the first page, risk averse dealers compete in a Bertrand fashion for liquidity-motivated public orders. The resulting inventories are private information. In the second stage,…

Enacting Share Values - Myth or Reality?: A Context-Specific Value Audit

Joanne Martin, Christine Beckman, Steven Su
1997

Commonly chosen combinations of methods choices have restricted organizational culture research. We selected an atypical mix of these choices and used them to develop a Values Audit Survey that used a mix of quantitative and qualitative methods…

Faith in Supervision and the Self-Enhancement Bias: Two Psychological Reasons Why Managers Don't Empower Workers

Jeffrey Pfeffer, Robert Cialdini, Benjamin Hanna, Kathleen Knopoff
1997

The present study provides evidence for two psychological processes that may help explain managers’ reluctance to use worker empowerment practices such as delegation or self-managing teams: 1) a faith in supervision effect, which reflects the…