{"title":"A Unified Theorem on Sdp Rank Reduction","authors":"A. M. So, Y. Ye, Jiawei Zhang","doi":"10.1287/moor.1080.0326","DOIUrl":"https://doi.org/10.1287/moor.1080.0326","url":null,"abstract":"We consider the problem of finding a low{rank approximate solution to a system of linearequations in symmetric, positive semidefinite matrices. Specifically, let A1; : : : ;Am 2 Rn£n symmetric, positive semidefinite matrices, and let b1; : : : ; bm ¸ 0. We show that if there exists a symmetric, positive semidefinite matrix X to the following system of equations:","PeriodicalId":124312,"journal":{"name":"New York University Stern School of Business Research Paper Series","volume":"75 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2006-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122178392","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Bank Debt Versus Bond Debt: Evidence from Secondary Market Prices","authors":"Amar Gande, E. Altman, A. Saunders","doi":"10.2139/ssrn.639081","DOIUrl":"https://doi.org/10.2139/ssrn.639081","url":null,"abstract":"This paper uses a new data set of daily secondary market prices of loans to analyze the specialness of banks as monitors. Consistent with a monitoring advantage of loans over bonds, we find the secondary loan market to be informationally more efficient than the secondary bond market prior to a loan default. Specifically, we find that secondary market loan returns Granger cause secondary market bond returns prior to a loan default. In contrast, secondary market bond returns do not Granger cause secondary market loan returns prior to a loan default. Copyright (c) 2010 The Ohio State University.","PeriodicalId":124312,"journal":{"name":"New York University Stern School of Business Research Paper Series","volume":"227 4","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2006-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133112148","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Stephen J. Brown, P. Swan, D. Gallagher, O. Steenbeek
{"title":"Concave Payoff Patterns in Equity Fund Holdings and Transactions","authors":"Stephen J. Brown, P. Swan, D. Gallagher, O. Steenbeek","doi":"10.2139/ssrn.890611","DOIUrl":"https://doi.org/10.2139/ssrn.890611","url":null,"abstract":"Recent results from the hedge fund literature provide evidence that option-based risk factors may be a significant factor in managed fund returns. By examining a unique database of high-frequency holdings and transactions from a representative sample of forty Australian equity funds we find that exposure to these option-based risk factors may well arise from trading activity rather than from derivative positions that generate similar payouts. While the resulting concave payout patterns are associated with large and significant alphas in our sample, these alphas may be more a compensation for a modest increase in tail risk exposure than they are a reward for information-based trading.","PeriodicalId":124312,"journal":{"name":"New York University Stern School of Business Research Paper Series","volume":"151 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2006-09-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114601285","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Flexible Investment Decisions in the Telecommunications Industry: Case Applications Using Real Options","authors":"F. Harmantzis, L. Trigeorgis","doi":"10.2139/ssrn.936483","DOIUrl":"https://doi.org/10.2139/ssrn.936483","url":null,"abstract":"The telecommunications sector is one of the most innovative, high-growth, capitalintensive yet volatile sector of the economy. This research addresses critical concerns of how, when, and why an enterprise or a service provider should undertake new investments. The study investigates the power of flexibility in investment decision making process, by applying the real options methodology. Five case applications are studied: a) investment decisions in next generation wireless networks; b) investing in integrated wireless networks; c) migration to wireless broadband internet services; d) valuing deployment of Wi-Fi networks in enterprise markets; and e) valuing Hosted VOIP services for enterprise markets. The case studies are analyzed both qualitatively and quantitatively.","PeriodicalId":124312,"journal":{"name":"New York University Stern School of Business Research Paper Series","volume":"61 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2006-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128787743","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"You Can't Take it with You: Sunset Provisions for Equity Compensation When Managers Retire, Resign, or Die","authors":"Sandeep Dahiya, D. Yermack","doi":"10.2139/ssrn.922640","DOIUrl":"https://doi.org/10.2139/ssrn.922640","url":null,"abstract":"Company stock option plans have diverse \"sunset\" policies for modifying terms of options held by managers who exit the firm. In our S&P 500 sample, these forfeiture, vesting, and expiration provisions are less generous in companies characterized by fast growth, dependence on skilled human capital, and high strategic interaction with competitors. While these results apply for workers who retire at the end of their careers, almost no variation exists in the treatment of workers who resign with the possibility of working elsewhere. For CEOs over age 60, companies' sunset rules imply large discounts to option award values and estimates of total compensation.","PeriodicalId":124312,"journal":{"name":"New York University Stern School of Business Research Paper Series","volume":"2011 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2006-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133174647","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Effects of Communicating Emotions on Consumer Perceptions of Fairness","authors":"K. Corfman, Sooyeon Nikki Lee-Wingate","doi":"10.2139/ssrn.945650","DOIUrl":"https://doi.org/10.2139/ssrn.945650","url":null,"abstract":"One way consumers deal with their perceptions of having been unfairly treated by a company is to express how they feel about it. Does this help or hurt the company? How about the perceptions of those who hear or read those emotional expressions? We address these questions to show that expressing emotions alleviates perceived unfairness but observing the emotional expressions ofothers exacerbates it. Expressing emotions induces expressers to become aware of their emotionsto make appropriate adjustments to the initial anchor of unfairness, whereas observing deprivesobservers of such opportunity but provides more evidence to strengthen the initial unfairness.The effect of emotion-focused expression is moderated by the perceived responsibility of theexpression receiver and the effect of observation is moderated by the observer's perceivedsimilarity to the source. Due to differences in how expression and observation operate, we findan interesting asymmetry. While expressing emotions and facts operate in the same direction on fairness perceptions, observing the expression of emotions works in a direction opposite toobserving the expression of facts.","PeriodicalId":124312,"journal":{"name":"New York University Stern School of Business Research Paper Series","volume":"24 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2006-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127349210","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Influence of Concrete and Abstract Affect on Inter-Temporal Consumer Judgments","authors":"Cenk Bülbül, G. Menon","doi":"10.2139/ssrn.948690","DOIUrl":"https://doi.org/10.2139/ssrn.948690","url":null,"abstract":"Extant theories of inter-temporal valuation of affect postulate different effects: while some theories predict that affect typically influences short-term, immediate decisions, other theories demonstrate that affect has influence on long-term decisions as well. In this article, we report the results of three experiments in which we demonstrate that affect can influence short-term and longterm decisions as a function of the nature of the associations evoked by the affect. We propose two different types of affect: Concrete affect that is posited to be more influential on short-term decisions, and abstract affect that is posited to be more influential on long-term decisions. We demonstrate that it is the specificity of the affective experience that distinguishes concrete affect from abstract affect. Concrete affect is more hot, visceral and certain, and evokes more immediate behavioral responses. On the other hand, abstract affect is warm, pallid and less certain, and has a greater influence on long term decisions. By using alternate manipulations of concrete and abstract affect - color and message content (experiment 1), discrete emotions (experiment 2), goals and message content(experiment 3) - we are able to enhance the construct validity of the phenomena we examine. We conclude with a discussion of the theoretical and practical implications of our results.","PeriodicalId":124312,"journal":{"name":"New York University Stern School of Business Research Paper Series","volume":"60 3","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2006-06-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121001931","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Does it Matter in Business Education? Interviews with Business School Deans","authors":"V. Dhar, A. Sundararajan","doi":"10.2139/SSRN.912586","DOIUrl":"https://doi.org/10.2139/SSRN.912586","url":null,"abstract":"How are business schools thinking about developing leaders for the emerging digital economy? To answer this question, we interviewed 45 business school deans about whether knowledge about IT in business should be a part of core MBA education, and if so, how this knowledge should be delivered. A majority of deans recognize the importance of IT in business and the need for its presence in a forward looking core business curriculum that is training managers for an increasingly global and information rich future. There are three themes around which such a presence is described by them: understanding how the transformative and wealth generating potential of IT changes business and society, understanding how to make successful IT investment decisions, and facilitating innovation and creativity in the use of increasingly available data for decision making. However, a significant fraction of these deans struggle with the delivery of IT content in their core curriculum, and there is a clear divergence between the extent to which business school leadership considers IT in business important, and its realized presence in core MBA education. We identify the main reasons that contribute towards this divergence and how some schools are addressing it. Based on our findings, we outline the business importance and intellectual foundations for a natural question around which core education about IT in business can be structured, which asks \"How does IT transform business and society?\"","PeriodicalId":124312,"journal":{"name":"New York University Stern School of Business Research Paper Series","volume":"84 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2006-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133789986","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Geographic Dispersion and Corporate Decision-Making","authors":"Augustin Landier, Vinay B. Nair, Julie Wulf","doi":"10.2139/ssrn.848745","DOIUrl":"https://doi.org/10.2139/ssrn.848745","url":null,"abstract":"We document the role of geographic dispersion on corporate decision-making. First, we find that geographically dispersed firms are less employee-friendly. Second, using division-level data, employee dismissals are less common in divisions located close to corporate headquarters. Third, firms are reluctant to divest in-state divisions. To explain these findings we consider two mechanisms. First, we investigate whether proximity is related to internal information flows. We find that firms are geographically concentrated when information is more difficult to transfer over long distances (soft information industries). Additionally, the protection of proximate employees is stronger in such soft information industries. Second, we investigate how proximity to employees affects managerial alignment with shareholder objectives. We document that the protection of proximate employees only holds when headquarters is located in less-populated counties suggesting concern for proximate employees. Moreover, stock markets respond favorably to divestitures of close divisions, especially for these smaller-county firms. Our findings suggest that social factors work alongside informational considerations in making geographic dispersion an important factor in corporate decision-making.","PeriodicalId":124312,"journal":{"name":"New York University Stern School of Business Research Paper Series","volume":"78 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2006-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134093504","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Entrepreneurship and the Stigma of Failure","authors":"Augustin Landier","doi":"10.2139/ssrn.850446","DOIUrl":"https://doi.org/10.2139/ssrn.850446","url":null,"abstract":"Entrepreneurial activity varies substantially across regions and sectors and appears to be related to the stigma of failure. To understand this phenomenon, I present a multiple-equilibrium model based on endogenous stigma of failure. Using private information, entrepreneurs choose whether to continue a project or to abandon it and raise funds to undertake a new project. Project outcomes depend on luck and ability, and the cost of capital for failed entrepreneurs is determined by the market's expectations about their ability. In the conservative equilibrium failed entrepreneurs face a high cost of capital and thus good entrepreneurs are reluctant to terminate a project. The resulting low quality of the pool of failed entrepreneurs justifies in turn the high cost of capital. The reverse is true in the experimental equilibrium where good entrepreneurs are more willing to start again and the cost of capital for failed entrepreneurs is low. The experimental equilibrium is not always efficient: The conservative equilibrium dominates in low-risk and capital intensive sectors. I study in this context the efficiency of institutions such as bankruptcy rules and fresh start policy. I show that policies aimed at increasing the survival of start-ups can have important counterproductive effects.","PeriodicalId":124312,"journal":{"name":"New York University Stern School of Business Research Paper Series","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2005-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116428294","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}