ERN: Firm Behavior & Competition (Topic)最新文献

{"title":"Technological Progress and Rent Seeking","authors":"Vincent Glode, Guillermo Ordoñez","doi":"10.2139/ssrn.3753042","DOIUrl":"https://doi.org/10.2139/ssrn.3753042","url":null,"abstract":"We model firms' optimal allocation of resources between surplus-creating (a.k.a., productive) activities and surplus-appropriating (a.k.a., rent-seeking) activities. We show that economy- or industry-wide technological progresses, such as the recent improvements in processing big data, induce a disproportionate and socially inefficient allocation of resources towards rent seeking. As technology improves, firms lean more on rent seeking to generate their profits, endogenously reducing the impact of technological progress on economic progress and inflating the price of resources that can either be used for rent seeking or production.","PeriodicalId":166155,"journal":{"name":"ERN: Firm Behavior & Competition (Topic)","volume":"14 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-03-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125342627","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":"Competition Network, Distress Propagation, and Stock Returns","authors":"W. Dou, Shane A. Johnson, MingMing Ao Shao, Wei Wu","doi":"10.2139/ssrn.3725236","DOIUrl":"https://doi.org/10.2139/ssrn.3725236","url":null,"abstract":"We build a competition network that links two industries through their common market leaders. Industries with higher centrality on the competition network have higher expected stock returns because of higher exposure to the cross-industry spillover of distress shocks. The competition intensity on the network is endogenously determined by the major players' economic and financial distress. We examine the core mechanism — the causal effects of firms' distress risk on their product market behavior and the propagation of these firm-specific distress shocks through the competition network — by exploiting the occurrence of local natural disasters and enforcement actions against financial frauds to identify idiosyncratic distress shocks. Firms hit by natural disasters or enforcement actions exhibit increased distress, then compete more aggressively by cutting profit margins. In response, their industry peers also cut profit margins, then become more distressed, especially in industries with high entry barriers. Crucially, distress shocks can propagate to other industries through common market leaders operating in multiple industries. These results cannot be explained by demand commonality or other network externality.","PeriodicalId":166155,"journal":{"name":"ERN: Firm Behavior & Competition (Topic)","volume":"17 6","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-02-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"120859613","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":"International Knowledge Spillovers and Capital Structure of Multinational Affiliates","authors":"Young-Kwon Kang, Ryoonhee Kim, Unjung Whang","doi":"10.2139/ssrn.3763235","DOIUrl":"https://doi.org/10.2139/ssrn.3763235","url":null,"abstract":"This paper investigates how knowledge transferred within multinational corporations affects capital structure decisions of foreign affiliates. Employing the unique dataset on Korean multinationals and their employment structure of foreign affiliates, we measure the knowledge transfer through human interactions using the ratio of expatriate managers to total employees. We document that affiliates with more expatriate managers tend to maintain lower leverage, suggesting the affiliates with high level of intangible assets passed to through expatriate managers opt for low debt financing. We further show that the negative effect on leverage is more pronounced when parents/affiliates are involved with greater intangible assets and the host countries have less knowledge assets in place. Our two stage least square estimation also confirms the negative relation between expatriate managers and financial leverage in foreign affiliates.","PeriodicalId":166155,"journal":{"name":"ERN: Firm Behavior & Competition (Topic)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-01-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128867153","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":"Kentucky and the Thoroughbred Industries: Prospects and Challenges As Gambling Popularity Declines","authors":"T. Lambert","doi":"10.2139/ssrn.3758213","DOIUrl":"https://doi.org/10.2139/ssrn.3758213","url":null,"abstract":"Over the last 15 to 20 years or so horse racing has seen declines in wagering and fan attendance throughout the US. Because of this, the number of races, horses per race, the number of thoroughbred farms, and new thoroughbreds bred and born each year for about the last 10 to 12 years have also declined. The decline in wagering has occurred despite simulcasting of races, online betting, and gambling machines which employ films of past races (historical horse racing machines). Those racetracks doing well are usually part of larger casino and entertainment complexes (racinos). Kentucky, which has one of the greatest number of horses and horse farms per capita in the United States, and which is also home to one of the world’s premier racetracks and horse races, Churchill Downs and the Kentucky Derby, has seen declining inflation adjusted horse industry tax revenues since the 1990s. These losses only exacerbate a state budget which has already seen substantial declines in or an almost complete loss of tax revenues from two other major industries of the state, coal and tobacco. This research note explains why the thoroughbred industries are declining and how this is impacting some Kentucky state tax revenues.","PeriodicalId":166155,"journal":{"name":"ERN: Firm Behavior & Competition (Topic)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134598328","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":"Competitive Intelligence and Corresponding Outcome in a Strategic Management Process: A Review of Literature","authors":"Moses Obonyo, J. Kilika","doi":"10.31014/aior.1992.03.04.313","DOIUrl":"https://doi.org/10.31014/aior.1992.03.04.313","url":null,"abstract":"The strategic management literature has put a lot of emphasis on the role of intelligence in the strategic management process. However, the available literature has not been thorough in outlining the role and the potential outcome of the deployment of business intelligence. Majority of the researchers have looked at the direct relationship between business intelligence with specific reference to competitive intelligence with performance. The purpose of this paper is to review the extant literature on competitive intelligence so as to highlight its role in the different phases of strategic management process as well as the emerging phenomenon of the adoption of competitive intelligence in a firm. The authors have integrated the extant literature on competitive intelligence with that on strategic management process. The paper reviews extant conceptual, theoretical and empirical literature and raises diverse issues that present a case for a new theoretical model suitable to extend the current understanding of the phenomenon brought about by the deployment of competitive intelligence. The paper raises implications for theory and practice and suggests a theoretical model suitable to guide future research.","PeriodicalId":166155,"journal":{"name":"ERN: Firm Behavior & Competition (Topic)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-12-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130446606","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":"Numbers of Bricks and Clicks: Price Competition Between Online and Offline Stores","authors":"Weixing Ford, Yixiu Li, Jie Zheng","doi":"10.2139/ssrn.3793589","DOIUrl":"https://doi.org/10.2139/ssrn.3793589","url":null,"abstract":"Abstract The development of internet technology has reshaped the market structure for many products. We study the price competition problem between online stores and offline stores, by allowing consumers' preferences to be more favorable towards online shopping. We consider 3 scenarios: (1) market with one online store; (2) market with multiple online stores; (3) market with no online store. For each scenario, we characterize equilibrium and conduct comparative statics analysis. Our results show that the market environment parameters may have different effect on important equilibrium variables, and the direction of such effect depends on consumers' relative preference between online shopping and offline shopping. Furthermore, we provide a complete characterization regarding the welfare comparisons among all possible market structures, showing that the optimal structure from the perspective of consumers or the social planner depends on consumers' relative preferences between the two channels, while the optimal structure in terms of producers’ surplus maximization is the one with no online store. By revisiting the competition between “Bricks” and “Clicks”, we contribute to the literature with new insights on both the comparative statics of equilibrium variables with respect to market environment parameters and the welfare consequences of market competition under different structures.","PeriodicalId":166155,"journal":{"name":"ERN: Firm Behavior & Competition (Topic)","volume":"108 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-12-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127045003","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 Dark Side of Audit Market Competition","authors":"Yue Pan, Nemit Shroff, Pengdong Zhang","doi":"10.2139/ssrn.3721517","DOIUrl":"https://doi.org/10.2139/ssrn.3721517","url":null,"abstract":"This paper examines the relation between audit market competition and audit quality. We use the staggered introduction of bullet trains in China as shocks to travel time between audit clients and prospective audit firms, which increases the threat of competition for incumbent audit firms. Using a generalized difference-in-differences design, we find that the increased threat of competition induced by the opening of a bullet train route in a city leads to a 4.9 percentage point (pp) increase in the rate of GAAP violations and a 2.5 pp decrease in modified audit opinions for clients headquartered in the city. We also find that bullet train connectivity leads to a 1.7 pp decrease in income-decreasing adjustments to earnings during year-end audits but no change in income-increasing audit adjustments. Results from several cross-sectional tests, an instrumental variables test, and a placebo test help mitigate endogeneity concerns. Our paper contributes to the literature by providing plausibly causal evidence that competition lowers audit quality.","PeriodicalId":166155,"journal":{"name":"ERN: Firm Behavior & Competition (Topic)","volume":"29 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-12-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130209026","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":"Manufacturing in Ethiopia: Decathlon’s Partnership Model","authors":"Dorothée Baumann-Pauly, Lorenzo Massa, N. Sheriff","doi":"10.2139/ssrn.3724583","DOIUrl":"https://doi.org/10.2139/ssrn.3724583","url":null,"abstract":"This teaching case study focuses on Decathlon, Europe’s biggest outdoor and sports retailer. It examines how the company is adjusting its business model to align growth and profits with positive social impact and respect for human rights. It discusses Decathlon’s recent involvement in the nascent Ethiopian garment industry and the company’s efforts to introduce a partnership model, which is based on longer-term business relationships and joint growth strategies with selected suppliers. Beyond Ethiopia, the partnership approach is enabling suppliers in developing countries to organize their work more effectively and helping garment workers acquire new skills and capabilities, thereby improving productivity. At the same time, manufacturers receive support from Decathlon to improve general working conditions and, over time, to increase workers’ wages.<br><br>The case introduces the challenges experienced by Anas Tazi, Decathlon’s country manager for Ethiopia. Decathlon’s sourcing strategy, based on a long-term business vision, requires stable demand and investments to unlock the strategy’s true potential. In Ethiopia, recent positive trends, such as greater supply chain transparency and heightened sensitivity to exploitative labor practices in the garment sector are threatened by ethnic and regional conflicts. These conflicts, sometimes violent in nature, could undercut efforts by the Ethiopian government and pioneering brands like Decathlon to develop and diversify the country’s economy. Against this backdrop, the questions are: How can brands source responsibly from developing countries and support their socio-economic development? Can Decathlon’s partnership model overcome a largely transactional business model and create value for foreign corporations and for the communities where the goods are being produced?<br><br>The case illustrates what companies can do to promote and uphold human rights through core business processes. But it also shows the complexities of managing global supply chains when crucial factors remain outside the control of individual companies. Establishing longer-term business relationships appears to support improved labor rights at supplier factories over time. Still, a high degree of economic and political stability is needed to support investments in longer-term sourcing relationships. In Ethiopia, the partnership model is put to the test, and students can discuss how brands could best deal with the challenges of the global and local operating context.<br><br> <br>","PeriodicalId":166155,"journal":{"name":"ERN: Firm Behavior & Competition (Topic)","volume":"13 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-11-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131421994","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":"Netflix, Inc.: The Mouse Strikes Back","authors":"R. Venkatesan, Shea Gibbs, Dan Shively","doi":"10.2139/ssrn.3703310","DOIUrl":"https://doi.org/10.2139/ssrn.3703310","url":null,"abstract":"In 2017, Disney announced that in 2019 it would launch Disney Plus, a subscription-based streaming video service that promised to rival Netflix, the dominant player in the market. This was the latest advancement in the history of movie rentals, which had first exploded in the 1980s with the advent of videotape and had gone through several technological transformations before reaching the age of streaming in the 2010s. At the time of Disney's announcement, Netflix dominated the market due to its ever-improving algorithmic recommendation system and its investment in original content. How would Netflix withstand the competition from Disney? What would be an appropriate measure of relative strength for a streaming service? This case offers a way in to discussions of customer lifetime value, market capitalization, and discounted cash flows, as well as the role of technological change in business models and firm valuation techniques. \u0000 \u0000Excerpt \u0000 \u0000UVA-M-0975 \u0000 \u0000Aug. 23, 2019 \u0000 \u0000Netflix, Inc.: The Mouse Strikes Back \u0000 \u0000Mickey Mouse had plans to join the streaming game. \u0000 \u0000In 2017, the Walt Disney Company announced it would launch a competitor to online video purveyors like Netflix in the next several years. \u0000 \u0000Disney Plus would be a paid subscription service offering access to all Disney and Fox Corporation content, along with new shows and movies and including 100% of the Marvel, Lucasfilm, Pixar, and National Geographic catalogues. Disney would also house its latest acquisitions, Hulu and ESPN Plus, on its new, web-based streaming platform. \u0000 \u0000. . .","PeriodicalId":166155,"journal":{"name":"ERN: Firm Behavior & Competition (Topic)","volume":"9 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-10-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133699603","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":"Business Intelligence and Firm Performance: Assessing Value and Future Directions in Pakistani Firms","authors":"Sumayya Arshad, D. Siddiqui","doi":"10.2139/ssrn.3683141","DOIUrl":"https://doi.org/10.2139/ssrn.3683141","url":null,"abstract":"The aim of this research is to examine how Business Intelligence (BI) enhances the firm’s performance in Pakistani firms. Pakistan is a developing country and BI is supposed to be in its initial stages in Pakistan while the data about BI implementation and usage in Pakistani firms are also not much available especially in statistical form. Model and questionnaire were adopted from Peters et. al. (2016). BI system quality is based on BI infrastructure, functionality, and self-service which helps in getting a better competitive advantage and increasing firm performance by enhancing performance measurement capabilities. Data was collected from 300 employees of different firms in Karachi, where business intelligence is being implemented. Results were analyzed through SEM-PLS. Results indicated that BI system quality enhances the performance measurement capabilities, that enhances the competitive advantage and optimizing the firm performance.","PeriodicalId":166155,"journal":{"name":"ERN: Firm Behavior & Competition (Topic)","volume":"9 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-08-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129982445","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}