Publications

The boards of all publicly traded companies are required to conduct a self-evaluation at least annually to determine whether they are functioning effectively. Research suggests that while many directors are satisfied with the job that they and…

This Research Spotlight provides a summary of the academic literature on CEO pay levels in the United States. It reviews the evidence of:

• Long-term trends in the CEO compensation
• The relation between CEO compensation and…

We study the rise of fintech and non-fintech shadow banks in the residential lending market. The market share of shadow banks in the mortgage market has nearly tripled from 2007-2015. Shadow banks gained a larger market share among less…

Among stock market entrants, more firms over time are R&D–intensive with initially lower profitability but higher growth potential. This sample-selection effect determines the secular trend in U.S. public firms’ cash holdings. A stylized firm…

Many observers consider the most important responsibility of the board of directors its responsibility to hire and fire the CEO. To this end, an interesting situation arises when a CEO resigns and the board chooses neither an internal nor…

Colorblindness and multiculturalism offer divergent prescriptions for reducing racial tensions. Colorblindness encourages looking beyond racial differences, whereas multiculturalism encourages recognizing them. We introduce a new construct,…

We examine the effect of public protest on policy by considering how protests may matter to lawmakers. Research on this topic suggests that protest signals information to lawmakers about citizen preferences. Empirical work finds that the strength…

This paper empirically examines recently declassified data from the GATT/WTO on tariff bargaining. Focusing on the Torquay Round (1950-51), we document six stylized facts about these interconnected high-stakes international negotiations.…

Diversity research has long assumed that individuals’ perceptions of diversity are accurate, consistent with normative theories of judgments in economics and decision theory. We challenge this assumption. In six experiments, we show that when…

A coevolutionary perspective on knowledge strategy is developed, where variant positions in knowledge space are predicted to result in differential advantages in product space.  In particular, advantages to being both consistent and…

We examine gender discrimination in the financial advisory industry. We study a less salient mechanism for discrimination, firm discipline following missteps. There are substantial differences in the punishment of misconduct across genders.…

I discuss three phenomena which appear important for modelling the impact of uncertainty on growth. The first is international spillovers in uncertainty, which arise even in large countries like the United States and particularly in smaller…

It has been estimated that more than three-quarters of all jobs are found through social networks. This is known as referral-based hiring. As referrals have grown in popularity, so has the debate about their impact.

On the…

Psychological stress can cause decreases in well-being, increases in disease, and faster cellular death. Because the workplace is one prominent source of stress, it is both practically and theoretically useful to comprehensively understand which…

Daily directional trading by mutual funds (MFs) is highly-persistent and price-destabilizing, leading to return reversals lasting months.  This effect is distinct from the “flow-induced trading” phenomenon in prior studies.  At the same…

Efforts on developing, implementing and evaluating a marketing analytics framework at a real-world company are described. The framework uses individual-level transaction data to fit empirical models of consumer response to marketing efforts, and…

Why might a country choose to aggregate regulatory information into a single government agency? And what might reverse this choice? We consider an oversight setting in which the institutional structure affects access to information. A regulator…

This research tested a social-developmental process model of trust discernment. From sixth to eighth grade, White and African American students were surveyed twice yearly (ages 11–14; Study 1, N = 277). African American…

Machine-learning prediction methods have been extremely productive in applications ranging from medicine to allocating fire and health inspectors in cities. However, there are a number of gaps between making a prediction and making a decision,…