The role of the entrepreneurial encounter in the emergence of opportunities: Vallée’s Dallas Buyers Club

ABSTRACT

This paper aims to explore the conceptual potential of the Deleuzian notion of the encounter in order to better understand the genealogy of opportunities. We adopt a processual perspective of opportunities. In order to translate this notion to the domain of entrepreneurship, we analysed and interpreted Jean-Marc Vallée’s Dallas Buyers Club. This film follows the creation of the first club in the United States that illegally allowed HIV-positive people to supply themselves with foreign antiretroviral drugs from Mexico or Japan. The article highlights encounters in this process that disturb the entrepreneur’s belief systems and allow him or her to be open to potential opportunity. It finally explores how the encounter may improve our understanding of the political becoming of opportunities within the entrepreneurial process.     

Spillover Effects of Internal Control Weakness Disclosures: The Role of Audit Committees and Board Connections

We find that firms are less likely to report an internal control material weakness (as mandated by the Sarbanes‐Oxley Act) in a given year if one of their audit committee members is concurrently on the board of a firm that disclosed a material weakness within the prior three years. We find a similar spillover effect for financial restatement disclosures. The spillover from material weakness disclosures is evident only if a shared director has more experience with the disclosing firm or can channel more information about the disclosed material weakness. Our findings suggest that prior director experiences outside the firm influence the work of audit committees inside the firm. One rationale is that a director's prior experience with an adverse disclosure helps diffuse important insights and serves as a catalyst for improvements in a firm's internal control and financial reporting practices. An alternative explanation, which we cannot dismiss, holds that a director's prior experience helps a firm to underreport material weaknesses and financial restatements without any attendant improvements in the underlying practices.     

The historical fuel efficiency characteristics of regional aircraft from technological, operational, and cost perspectives

To develop approaches that effectively reduce aircraft emissions, it is necessary to understand the mechanisms that have enabled historical improvements in aircraft efficiency. This paper focuses on the impact of regional aircraft on the US aviation system and examines the technological, operational and cost characteristics of turboprop (TP) and regional jet (RJ) aircraft. Regional aircraft are 40–60% less fuel efficient than their larger narrow- and wide-body counterparts, while RJs are 10–60% less fuel efficient than TPs. Fuel efficiency differences can be explained largely by differences in aircraft operations, not technology. Direct operating costs per revenue passenger kilometer are 2.5–6 times higher for regional aircraft because they operate at lower load factors and perform fewer miles over which to spread fixed costs. Further, despite incurring higher fuel costs, RJs are shown to have operating costs similar to TPs when flown over comparable stage lengths.