Variable Selection in Cross‐Section Regressions: Comparisons and Extensions

Cross‐section regressions often examine many candidate regressors. We use multiple testing procedures (MTPs) controlling the false discovery rate (FDR) — the expected ratio of false to all rejections — so as not to erroneously select variables because many tests were performed, yielding a simple model selection procedure. Simulations comparing the MTPs with other common model selection criteria demonstrate that, for conventional tuning parameters of the selection procedures, only MTPs consistently control the FDR, but have slightly lower power. In an empirical application to growth, MTPs and PcGets/Autometrics identify similar growth determinants, which differ somewhat from those obtained by Bayesian Model Averaging.     

Customer and Supplier Portfolios: Can Credit Risks be Managed Through Supply Chain Relationships?

While supply chain risk has been the subject of an ever‐increasing amount of research attention, the importance of credit risk has been less studied, at least by supply chain researchers. Yet, there may be risks inherent within a firm's portfolios of supply chain relationships that are manifested in the credit risk of a firm. Moreover, portfolio characteristics may serve as a signal to the external market regarding these risks. While customer and supplier portfolio characteristics may impact the firm's exposure to risks, the specific issue of how portfolio characteristics relate to credit risk has rarely been examined by supply chain scholars. This research bridges extant works in supply chain management and finance to relate supply chain characteristics to a critical reputational outcome, namely credit ratings. In this research, we utilize a sample of firms that recently underwent an initial public offering to empirically examine the theoretical predictions of Resource Dependence Theory regarding the relationships between different supply chain portfolio characteristics and credit risk.     

Management in production: from unobserved to observed

Are productivity estimates good proxies for unobserved management? And, does management affect production in a neutral and monotonic fashion as assumed by these proxies? We use Bloom and Van Reenen’s management data to show that two popular proxies, fixed effects and inefficiency scores, correlate with observed management practices. We find that the correlations are positive but weak. Also, management explains only a fraction of the proxies’ variances. The data rejects the assumptions of neutrality and monotonicity. Last, our results suggest that management has characteristics both of a technology and an input.     

The power of positivity? The influence of positive psychological capital language on crowdfunding performance

We extend the entrepreneurship literature to include positive psychological capital — an individual or organization's level of psychological resources consisting of hope, optimism, resilience, and confidence — as a salient signal in crowdfunding. We draw from the costless signaling literature to argue that positive psychological capital language usage enhances crowdfunding performance. We examine 1726 crowdfunding campaigns from Kickstarter, finding that entrepreneurs conveying positive psychological capital experience superior fundraising performance. Human capital moderates this relationship while social capital does not, suggesting that costly signals may, at times, enhance the influence of costless signals. Post hoc analyses suggest findings generalize across crowdfunding types, but not to IPOs.     

The effects of fuel prices and vehicle sales on fuel‐saving technology adoption in passenger vehicles

Although economic theory suggests that both sales and fuel costs affect technology adoption by vehicle manufacturers, there is very little empirical evidence on either effect. We document a strong connection between a vehicle's sales and its energy efficiency. Using a demographics‐driven demand shifter to isolate demand‐side changes in sales, we find that a one standard deviation increase in sales raises efficiency by 0.2%, compared with a mean improvement rate of 1.4% per year between 1997 and 2013. Higher fuel prices also increase technology adoption directly by increasing willingness to pay for fuel cost savings. The results have two implications: manufacturers will continue to focus technological improvements on top selling vehicles; and fuel taxes will have larger effects on technology adoption than fuel economy standards and feebates.     

Beyond endorsements: The effect of celebrity Creative Directors on consumers’ attitudes toward the advertisement

Marketers are beginning to expand the roles that celebrities play in support of brands. Connections now go beyond the typical endorsement relationship to employing celebrities as Creative Directors. Study 1 demonstrates celebrity Creative Directors, as opposed to merely endorsers, result in increased attitudes toward the advertisement; an effect mediated by consumer perceptions of celebrity expertize and attenuated by skepticism toward advertising. Study 2 further investigates this phenomenon by considering whether it is the title of Creative Director that results in increased attitudes toward the advertisement or if consumers need to be made aware of the responsibilities associated with such a role. Results from Study 2 suggest that merely bestowing a celebrity with the title of Creative Director is not sufficient to enhance attitudes, the duties performed by the celebrity Creative Director must be made explicit.