Internationalization, resource allocation and firm performance

In this paper, we examine the effects of internationalization and resource allocation on firm performance. We argue that resource allocation plays a pivotal role in determining a firm's international growth. Using a sample of Taiwanese firms, we find an optimal level of internationalization, in terms of the number of countries, as well as the level of investment towards value appropriation that is necessary to start creating a positive impact on firm performance. As a result of our study, we propose that Taiwanese firms would likely benefit by shifting their focus of resource allocation from R&D to marketing.     

Company name fluency and acquisition target analysis

This paper investigates the impact of company name fluency on acquisitions. We hypothesize that a company's name fluency, used by potential acquirers as a mental shortcut, influences not only its visibility to investors but also the level of interest from potential acquirers, increasing the company's acquisition probability. After correcting for endogeneity, company name fluency is positively associated with both the probability of being an acquisition target and an acquisition premium. Reasons for a higher acquisition premium for targets with higher name fluency are identified as reduced need to hire top-tier investment banks and higher synergy.     

Marketing insights from text analysis

Language is an integral part of marketing. Consumers share word of mouth, salespeople pitch services, and advertisements try to persuade. Further, small differences in wording can have a big impact. But while it is clear that language is both frequent and important, how can we extract insight from this new form of data? This paper provides an introduction to the main approaches to automated textual analysis and how researchers can use them to extract marketing insight. We provide a brief summary of dictionaries, topic modeling, and embeddings, some examples of how each approach can be used, and some advantages and limitations inherent to each method. Further, we outline how these approaches can be used both in empirical analysis of field data as well as experiments. Finally, an appendix provides links to relevant tools and readings to help interested readers learn more. By introducing more researchers to these valuable and accessible tools, we hope to encourage their adoption in a wide variety of areas of research.

     

Book-tax differences,CEO overconfidence,and bank loan contracting

Review of Quantitative Finance and Accounting - We assess information embedded in the difference between the reported book income and the taxable income (the book-tax difference, BTD hereafter)...     

New axioms for top trading cycles

The school choice problem is of great importance both in theory and practice. This paper studies the (student-optimal) top trading cycles mechanism (TTCM) in an axiomatic way. We introduce two new axioms: MBG (mutual best group)-quota-rationality and MBG-robust efficiency. While stability implies MBG-quota rationality, MBG-robust efficiency is weaker than robust efficiency, which is stronger than the combination of efficiency and group strategy proofness. The TTCM is characterized by MBG-quota rationality and MBG-robust efficiency. Our results construct a new basis to compare the TTCM with the other school choice mechanisms, in terms of both fairness and incentive-related axioms.