Frequent acquirers and management compensation

We find positive contemporaneous, short-, and long-run effects of an increase in the acquisition rate on management compensation. A positive bidirectional causality exists between acquisition frequency and management compensation. A higher firm value is likely to associate with higher acquisition frequency. Acquisition rate has a positive impact on the market share. Acquirers with lower market share are more likely to become frequent acquirers. A causal order follows from lower market share to higher acquisition frequency to higher firm value to higher management compensation. The impact of acquisition frequency on management compensation is higher for value-enhancing acquirers relative to value-destroying acquirers.     

Knowledge Management in Supply Chains: The Role of Explicit and Tacit Knowledge

We theorize, building on the knowledge‐based view and the theoretical distinction between explicit and tacit knowledge, that knowledge management capability across the supply chain manifests itself in explicit and tacit knowledge, which in turn effectuates supply chain performance. The model is tested with survey data from 195 small‐ and medium‐sized enterprises reporting on their primary supply chain. The results indicate that the supply chain's knowledge management capability manifests itself in both explicit and tacit knowledge, with the latter being influenced more strongly. Moreover, it was found that while both explicit and tacit knowledge influence supply chain performance, the latter exerts a significantly greater impact than the former. Exploratory post hoc analyses add robustness to these findings and investigate mechanisms inherent to the transformation of tacit into explicit knowledge. Overall, this research contributes to academic theory development in logistics and supply chain management by the dichotomization of knowledge types and the demonstration of their differential magnitude of effects, and to managerial practice by providing important guidance for logistics managers structuring their knowledge management efforts across supply chains.     

Investigating the different approaches to importance–performance analysis

Importance–performance analysis (IPA) is an analytic technique that generates a two-dimensional importance–performance grid, where the values of importance and performance across attributes are plotted against each other. This technique is used to assist service and other firms in prioritizing areas for service improvement when resources are limited. This study contributes to service theory by first performing a comprehensive literature review of four different and commonly used approaches to IPA. Survey data from the ports sector are then used to elucidate the value and the distinctiveness of these four different approaches, and it is also shown how the underlying theoretical assumptions led to somewhat varying, and contradictory interpretations. Subsequently, novel guidelines for integrating results from these four different approaches are proposed. The study advances service theory by detailing the integration of the different approaches to make sense of the importance and performance of diverse service attributes. The integrative approach developed in this paper also provides practitioners with clearer guidance for the application of IPA.     

The Effect of Probability Distribution Functions of Economic Life on Retirement Alternatives

Economic analysis, supported by computer hardware and software, can easily overwhelm a decision maker with data. However, this data can be organized in a readily understandable way using well-designed graphs. Some simple guidelines suggest substantial improvements over available examples from papers and textbooks. Although these graphs and sensitivity analyses are useful in many quantitative problems, the long-range focus of engineering economy and its concomitant uncertainty dramatically increase their value.     

The pricing of accruals for profit and loss firms

This paper investigates whether the accrual anomaly reported in prior studies exists across both profit and loss firms. We posit that the extent of accrual mispricing is less severe for loss firms than for profit firms because earnings for loss firms are less value relevant and, therefore, less subject to accrual mispricing. As expected, we find that the accrual overpricing anomaly is restricted to profit-making firms and, thus, is dampened by the inclusion of loss firms in the sample. Furthermore, we report that accrual overpricing for profit firms but not for loss firms is primarily attributable to the overpricing of positive accruals of profit firms compared with those of loss firms. Finally, we find that the phenomenon of accrual overpricing for profit but not for loss firms may persist into the new regulatory environment following the passage of the Sarbanes–Oxley Act of 2002.     

Business Incubators in China: A Financial Services Perspective

The business incubation industry in China has been booming since the mid-1990s. However, the lack of a well-developed financial services sector has become a major bottleneck to the growth of the industry. Based on our visits to 12 Chinese business incubators around the country and interviews with their executives, we present our perspective on the state of the incubator industry in China with special emphasis on incubators' financial services for their incubatees.     

Discussion of “Comparing Alternative Hedge Accounting Standards: Shareholders' Perspective”

Review of Accounting Studies -