85 Posts found for Source: Capital Ideas

Using Sale Cues to Influence Customer Purchasing

Content: Article | Author: Eric Anderson | Source: Capital Ideas | Subjects: Industry Specific, Marketing / Sales | Industry: Retail

During periods of rampant mergers and acquisitions, a critical eye is given to a company’s corporate culture. According to recent research by Ronald Burt, a professor of sociology and strategy at the University of Chicago Graduate School of Business, a strong corporate culture can positively affect a firm’s economic performance. But there is no guarantee that a strong culture assures high performance. Burt’s conclusion: the … [ Read more ]

Content: Article | Author: Ronald S. Burt | Source: Capital Ideas | Subject: Organizational Behavior

On average, stock ownership by officers and directors of publicly traded firms is higher today than earlier in the 20th century.

Content: Article | Author: Randall S. Kroszner | Source: Capital Ideas | Subjects: Corporate Governance, Finance

If introducing a new product line creates a small probability of losing a few million dollars and a large probability of earning many billions of dollars, it seems clear that the new product line should be introduced. But does what we know about managerial decision making suggest that the new product line will be introduced?

Content: Article | Authors: Christopher K. Hsee, Yuval S. Rottenstreich | Source: Capital Ideas | Subjects: Management, Organizational Behavior

People want to have positive views of themselves, and organize much of their lives around maintaining, enhancing, and protecting their self-esteem. By simply comparing oneself to more successful rivals, one’s self-esteem may become threatened. These comparisons are particularly intense in the business world when rivals are members of the same company-such as competitors for organizational rewards and promotions-as opposed to rivals from other firms.

The subtleties … [ Read more ]

Content: Article | Authors: Hoon-Seok Choi, Leigh Thompson, Tanya Menon | Source: Capital Ideas | Subject: Organizational Behavior

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In the late 1990s, the use of employee stock options increased dramatically, as did the use of stock repurchases. Both affect a company’s earnings per share. New research goes beyond the anecdotes to determine whether financial reporting incentives affect corporate managers’ decisions to repurchase their company’s stock.

Content: Article | Authors: Daniel A. Bens, Douglas J. Skinner, M.H. Franco Wong | Source: Capital Ideas | Subjects: Accounting, Finance | Industry: Finance / Banking

Banner advertising helps companies retain customers by bringing them back to a company’s Web site faster and encouraging them to spend more.

Content: Article | Authors: Jean-Pierre Dubé, Pradeep K. Chintagunta, Puneet Manchanda | Source: Capital Ideas | Subjects: Advertising, Marketing / Sales | Industry: Advertising

Are Emily and Brendan More Employable than Lakisha and Jamal?

Though racial inequality in the U.S. labor market is understood as a persistent problem even today, it has been difficult to measure how such discrimination works. Do employers actively discriminate against African-American job applicants? Can such discrimination be proven? What is the effect of improved credentials for African-Americans? A new study offers the answers.

Content: Article | Authors: Marianne Bertrand, Sendhil Mullainathan | Source: Capital Ideas | Subjects: Human Resources, Miscellaneous

The similar economic position of parents and children is partly determined by how well parents teach their children to save.

Content: Article | Authors: Erik Hurst, Kerwin Kofi Charles | Source: Capital Ideas | Subjects: Demographics, Economics

According to the law of one price, identical assets should have identical prices. Driving this law is arbitrage, in which an investor buys and sells the same security for two different prices to make a profit. In a well functioning capital market, arbitrage prevents the law of one price from being broken, and in fact, violations of the law are rarely seen.

Content: Article | Authors: Owen A. Lamont, Richard H. Thaler | Source: Capital Ideas | Subjects: Finance, Industry Specific | Industry: Investment Banking

The worldwide trend toward defined contribution savings plans give individual employees more responsibility for their investment decisions. But are they up to the task?

Content: Article | Author: Richard H. Thaler | Source: Capital Ideas | Subjects: Finance, Human Resources

How much can venture capitalists protect themselves against losses if an investment goes bad? How much control should entrepreneurs be prepared to give up? What happens to both parties when a new venture succeeds? To successfully tackle the good, bad, and in-between stages of new ventures, writing the appropriate financial contract is key.

Content: Article | Authors: Per Strömberg, Steven N. Kaplan | Source: Capital Ideas | Subjects: Entrepreneurship, Venture Capital

New research explains who acquires whom, whether payment is made in cash or stock, what valuation consequences arise from mergers, and why there are merger waves.

Content: Article | Authors: Andrei Shleifer, Robert W. Vishny | Source: Capital Ideas | Subject: Finance

By looking carefully at data on individual stock prices, it is easy to find many examples of “comovement” – groups of stocks whose prices tend to move together. For instance, prices of stocks in the same industry tend to move together, as do the prices of small-cap stocks, value stocks, and closed-end funds.

Content: Article | Authors: Andrei Shleifer, Jeffrey Wurgler, Nicholas Barberis | Source: Capital Ideas | Subjects: Finance, Industry Specific | Industry: Investment Banking

From evolutionary biology to discrimination to personal preferences, science and society have offered many reasons for why women have not caught up with men in the workforce. New research suggests that part of the answer lies in the different ways men and women react to the incentive of competition.

Content: Article | Author: Uri Gneezy | Source: Capital Ideas | Subjects: Human Resources, Women in Business

U.S. corporate scandals such as Enron and Tyco have highlighted the fact that insiders enjoy benefits above and beyond those of the average shareholder-the so-called “private benefits of control.” How widespread are these benefits? What effects do they have on the development of a country’s securities market? Furthermore, how can such benefits be curbed? New research indicates that in spite of the recent corporate scandals … [ Read more ]

Content: Article | Author: Luigi Zingales | Source: Capital Ideas | Subjects: Economics, Finance | Industry: Investment Banking

New research estimates that taxpayer liability for the Japanese financial crisis will total at least 24 percent of Japan’s GDP.

Editor’s Note: this article is a bit topical, but the issues addressed and the importance and longevity of the topic lead me to include it.

Content: Article | Author: Anil Kashyap | Source: Capital Ideas | Subjects: Economics, International – Asia

It is common knowledge that managers have to build strong networks of personal relationships to accomplish their business goals, and that the general rule is to build for diversity. But not all networking structures are created equal according to University of Chicago Graduate School of Business professor of sociology and strategy Ronald S. Burt. In his 1997 report “The Gender of Social Capital,” Burt finds … [ Read more ]

Content: Article | Author: Ronald S. Burt | Source: Capital Ideas | Subjects: Career, Women in Business

Investors generally subscribe to the conventional wisdom that growth stocks outperform value stocks. But a study of international portfolios by professors at the University of Chicago Graduate School of Business and the Yale School of Management has shown that in reality the reverse is true: Value stocks reap higher returns than growth stocks in markets around the world.

Editor’s Note: this is an old article … [ Read more ]

Content: Article | Author: Eugene F. Fama | Source: Capital Ideas | Subjects: Economics, Finance | Industry: Investment Banking