Indiana University Kelley School of Business Research Paper Series最新文献

{"title":"The Formation of Opportunity Beliefs: Overcoming Ignorance and Reducing Doubt","authors":"D. Shepherd, Jeffery S. McMullen, P. Jennings","doi":"10.1002/SEJ.3","DOIUrl":"https://doi.org/10.1002/SEJ.3","url":null,"abstract":"Although (opportunity) beliefs are becoming increasingly recognized as fundamental to understanding entrepreneurial cognition and strategic action, little is understood about the mechanisms that are responsible for the formation and evolution of these beliefs. Introducing the mechanisms of gists, matching, and updating from philosophy's and psychology's coherence theory, we propose a theoretical framework to explain how third-person opportunity beliefs (beliefs that one has recognized an opportunity for someone with the right knowledge and motivation) are formed and how they evolve to become first-person opportunity beliefs (beliefs that one has recognized an opportunity for himself or herself). We conclude by examining how the model contributes to literatures ranging from entrepreneurial cognition and action, to strategic myopia and organizational attention, to opportunity recognition, discovery, and creation. Copyright © 2007 Strategic Management Society.","PeriodicalId":412480,"journal":{"name":"Indiana University Kelley School of Business Research Paper Series","volume":"96 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2007-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114212081","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":"Internal Control Weaknesses and Information Uncertainty","authors":"M. Beneish, Mary Brooke Billings, Leslie D. Hodder","doi":"10.2139/ssrn.896192","DOIUrl":"https://doi.org/10.2139/ssrn.896192","url":null,"abstract":"We analyze a sample of 330 firms making unaudited disclosures required by Section 302 and 383 firms making audited disclosures required by Section 404 of the Sarbanes-Oxley Act. We find that Section 302 disclosures are associated with negative announcement abnormal returns of -1.8 percent, and that firms experience an abnormal increase in equity cost of capital of 68 basis points. We conclude that Section 302 disclosures are informative and point to lower credibility of disclosing firms' financial reporting. In contrast, we find that Section 404 disclosures have no noticeable impact on stock prices or firms' cost of capital. Further, we find that auditor quality attenuates the negative response to Section 302 disclosures and that accelerated filers - larger firms required to file under Section 404 - have significantly less negative returns (-1.10 percent) than non-accelerated filers (-4.22 percent). The findings have implications for the debate about whether to implement a scaled securities regulation system for smaller public companies: material weakness disclosures are more informative for smaller firms that likely have higher pre-disclosure information uncertainty.","PeriodicalId":412480,"journal":{"name":"Indiana University Kelley School of Business Research Paper Series","volume":"69 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2007-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122713672","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":"Repeat Purchase Amid Rapid Quality Improvement: Structural Estimation of Demand for Personal Computers","authors":"Jeffrey T. Prince","doi":"10.2139/ssrn.917865","DOIUrl":"https://doi.org/10.2139/ssrn.917865","url":null,"abstract":"This paper estimates a structural model of demand for the personal computer (PC) by repeat purchasers. Taking advantage of a large data set on household-level PC purchases, the econometric model uses variation in PC holdings among PC owners to identify households' marginal values of quality improvements. The analysis only requires data on a cross-section of households along with observed PC offerings over time, and accounts for stock effects, forward-looking behavior, and large amounts of household heterogeneity. The estimates allow us to measure sensitivity to long-term and short-term price and technology changes, as well as consumer welfare changes from technological improvements. The results show a large variation in marginal values for PC quality across households, and that failing to account for forward-looking behavior results in biased estimates and a poorer fit to the data. Incorporating stock effects proves especially important because, for the data used here, the model's parameters are not only biased but also virtually impossible to pin down without them. The results also show that price elasticity is approximately 25% higher in the short term compared to the long term, and technology elasticity is approximately 35% higher in the short term compared to the long term. Furthermore, welfare measurements are significantly underestimated when using a model that does not account for forward-looking behavior. Finally, the model is extended to include first-time purchasers. The results show similar patterns, but should be interpreted with much caution owing to the likely presence of significant unobserved heterogeneity between new purchasers and repeat purchasers.","PeriodicalId":412480,"journal":{"name":"Indiana University Kelley School of Business Research Paper Series","volume":"9 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2007-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126362955","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":"Loan Officers and Relationship Lending","authors":"H. Uchida, Nobuyoshi Yamori, Gregory F. Udell","doi":"10.2139/ssrn.926981","DOIUrl":"https://doi.org/10.2139/ssrn.926981","url":null,"abstract":"Theoretical and empirical work suggests that commercial loan officers play a critical role in relationship lending by producing soft information about their SME borrowers. We test whether loan officers in the Japanese SME loan market perform this role in a manner that is consistent with the theoretical predictions in the relationship lending literature. While we find limited evidence that soft information may benefit SME borrowers, we do not find evidence that is on balance consistent with theoretical predictions that loan officers produce soft information that is not easily transmitted to others within the bank. These results are consistent with alternative explanations including the possibility that the social environment in Japan leads to a credit culture where it is easier to transmit soft information from one loan officer to another. It could also be consistent with the possibility that the relationship lending may not be particularly important in the Japanese SME loan market.","PeriodicalId":412480,"journal":{"name":"Indiana University Kelley School of Business Research Paper Series","volume":"6 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2006-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115730908","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":"Delegated Portfolios and Scope Characteristics","authors":"E. Goldman, X. Zhou","doi":"10.2139/ssrn.566001","DOIUrl":"https://doi.org/10.2139/ssrn.566001","url":null,"abstract":"In this paper, we demonstrate that the performance of actively-managed equity portfolios varies cross sectionally with several portfolio scope characteristics. In particular, we show that performance (as measured by Jensen's alpha) increases when a larger fraction of the portfolio is concentrated within the top ten asset holdings and when the portfolio is focused on a small number of sectors as measured by the Herfindahl Index of sector investment concentration. In addition, we find that performance increases with the number of securities held in the portfolio when the number of securities is small but that performance decreases once the number of securities held in the portfolio becomes large. We further demonstrate that these cross sectional results are robust to controlling for other portfolio and fund characteristics such as size, fees, turnover, and investment style. One possible interpretation of our findings is that portfolios that the management team finds more difficult to oversee and manage result in lower performance.","PeriodicalId":412480,"journal":{"name":"Indiana University Kelley School of Business Research Paper Series","volume":"15 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2005-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126948064","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":"Share Repurchases and the Need for External Finance","authors":"Matthew T. Billett, H. Xue","doi":"10.2139/ssrn.393360","DOIUrl":"https://doi.org/10.2139/ssrn.393360","url":null,"abstract":"We investigate the relationship between the need for external finance and the information content of share repurchases. We find that share repurchase announcement returns increase in the likelihood the firm will need to raise equity in the future. We then examine whether announcement returns to seasoned equity offerings (SEOs) differ when an open market share repurchase precedes the SEO. We hypothesize that repurchases may reduce asymmetric information regarding firm value. In this case, the repurchase mitigates the adverse selection problem associated with issuing equity, and the abnormal return to the SEO announcement should be less negative. We find significantly less negative abnormal returns when the SEO is preceded by a repurchase announcement. We document less negative SEO announcement abnormal returns when the SEO and repurchase announcements are closer in time. We find that compared to other repurchase firms, repurchase firms that are more likely to issue equity have better investment opportunities, have less internally generated cash flow, and face more severe financial constraints. We conclude that payout policy, in the form of stock repurchases, plays a significant role in conveying information about firm value.","PeriodicalId":412480,"journal":{"name":"Indiana University Kelley School of Business Research Paper Series","volume":"4 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2004-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123922179","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 Ownership and Financing of Innovation in R&D Races","authors":"P. Fulghieri, Merih Sevilir","doi":"10.2139/ssrn.342722","DOIUrl":"https://doi.org/10.2139/ssrn.342722","url":null,"abstract":"This paper develops a theory of the organization form and financing of innovation activities where integration, venture capital financing, and strategic alliances emerge as optimal responses to competitive pressures of the R&D race, the stage of the research and product development, and the severity of the financial constraints. We model the relationship between a research unit and its downstream firm in the context of a R&D race with a competing pair. We show that the choice of organization and financial structure of the R&D activity plays a strategic role by committing a research unit and its downstream firm to an accelerated R&D activity. We find that integrated organization structures are more likely to emerge when the downstream firm is more productive than the research unit, competition in the R&D race is more intense or the R&D cycle involves late-stage research, and when the research unit is financially constrained. Non-integration and independent venture capital financing are more likely to emerge when the research unit is more productive than the downstream firm, when competition in the R&D race is less intense or the R&D cycle involves early-stage research, and when the research unit is not financially constrained. Finally, corporate venture capital and strategic alliances are more likely to emerge when competition in the R&D race is more intense, the R&D cycle involves late-stage research, and when the productivity of the research unit is high.","PeriodicalId":412480,"journal":{"name":"Indiana University Kelley School of Business Research Paper Series","volume":"27 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2001-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125895061","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":"Partial Privatization and Firm Performance: Evidence from India","authors":"Nandini Gupta","doi":"10.2139/ssrn.294560","DOIUrl":"https://doi.org/10.2139/ssrn.294560","url":null,"abstract":"Privatization in India is mostly limited to the diffuse sale of minority stakes in firms. Since control rights have not been transferred to private owners it is widely contended that the process has had little impact on firm behavior. We find however that even the sale of minority stakes has a positive impact on firm performance and productivity. As the government remains the controlling owner in these firms, we infer that the improvement is attributable to the role of the stock market in monitoring managerial performance rather than to a change in owners' objectives. Consistent with this interpretation, we find that improvements in earnings are due to an increase in the productivity of labor rather than layoffs. Partial privatization continues to affect the sales and operating efficiency of firms when we control for competitive conditions, and the evidence also suggests that privatization and competition have a complementary impact on firm performance.","PeriodicalId":412480,"journal":{"name":"Indiana University Kelley School of Business Research Paper Series","volume":"103 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2001-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128097040","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":"Fair Values, Comprehensive Income Reporting, and Bank Analysts' Risk and Valuation Judgments","authors":"D. Hirst, P. Hopkins, James M. Wahlen","doi":"10.2139/ssrn.273350","DOIUrl":"https://doi.org/10.2139/ssrn.273350","url":null,"abstract":"We investigate whether the measurement and reporting of comprehensive income in financial statements systematically affects commercial bank equity analysts' investment risk assessments and valuation judgments. In an experiment in which 80 buy side analysts specializing in banking and financial institutions participated, we vary whether a bank is exposed to or hedged against interest rate risk across three different comprehensive income accounting regimes - piecemeal fair value accounting with comprehensive income reported in the statement of changes in equity, piecemeal fair value accounting with comprehensive income reported in a separate statement of performance, and full fair value accounting with comprehensive income reported in a separate statement of performance. When fair value changes are measured and reported on a piecemeal basis, we find no investment risk or valuation judgment differences across CI reporting regimes. Although we find that the analysts' investment risk judgments are influenced by the banks' risk management strategies, their valuation judgments are not. Only when fair value changes are measured completely and reported transparently (i.e., full fair value accounting) do analysts' valuation judgments distinguish between banks with different levels of risk. The study contributes to three avenues of literature concerned with financial-reporting transparency, risk, and fair value accounting. First, our ex ante evidence informs accounting standard setters as they evaluate whether to move to full fair value accounting for all financial instruments, and assess the degree to which differences in comprehensive income measurement and reporting affect the information analysts obtain from financial statements. Second, the study adds to the experimental accounting literature that examines comprehensive income reporting format effects and valuation judgments. Third, we add to archival accounting research on the information in comprehensive income by testing market participants' judgments under different comprehensive income reporting regimes, which cannot be directly investigated with archival data.","PeriodicalId":412480,"journal":{"name":"Indiana University Kelley School of Business Research Paper Series","volume":"37 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2001-06-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122137236","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":"Insider Trading, Earnings Quality, and Accrual Mispricing","authors":"Mark E. Vargus, M. Beneish","doi":"10.2139/ssrn.275985","DOIUrl":"https://doi.org/10.2139/ssrn.275985","url":null,"abstract":"This paper investigates whether insider trading is informative about earnings quality and the valuation implications of accruals. We show that (1) the one‐year‐ahead persistence of income‐increasing accruals is significantly lower when accompanied by abnormal insider selling and greater when accompanied by abnormal insider buying; (2) the accrual mispricing phenomenon observed in previous work (e.g., Sloan 1996) is due to the mispricing of income‐increasing accruals; (3) one‐year‐ahead hedge returns to trading strategies based on the direction of accruals and insider trading significantly exceed those based on accruals alone; and (4) the lower persistence of income‐increasing accruals accompanied by abnormal insider selling appears to be at least partly attributable to opportunistic earnings management. Our evidence suggests that market participants and researchers can use managers' contemporaneous trading in ex ante assessing the likelihood that the firms' accruals are of high or low quality, and in asse...","PeriodicalId":412480,"journal":{"name":"Indiana University Kelley School of Business Research Paper Series","volume":"13 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2001-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125535040","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}