Global Insights on TMT Gender Diversity in Controversial Industries: A Legitimacy Perspective

Journal of Business Ethics - Firms in controversial industries such as tobacco, alcohol, gambling, weapon, and nuclear power suffer organizational legitimacy problems. These firms, therefore, adopt...     

The Pricing Kernel Puzzle: A Real Phenomenon or a Statistical Artifact?

A large literature finds evidence that the pricing kernels estimated from option prices and historical returns are not monotonically decreasing in market returns. We show that the inevitable coalescence of contingencies, especially in the left‐tail, associated with estimating a distribution function may give rise to a nonmonotonic empirical pricing kernel even if the actual pricing kernel is monotonic. Hence, the observed nonmonotonicity of pricing kernels may be a statistical artifact rather than a real phenomenon. We argue that empirical work should explicitly correct for this effect by widening the option pricing bounds associated with monotonic pricing kernels.     

Navigating through firm–environmental groups' relationships: The impact of societal trust on corporate environmental strategy

This study examines the impact of societal trust on corporate environmental strategy with particular reference to the firm–environmental groups' relationship, which has received very little attention in trust literature. Using data on 2332 firms from 16 countries, we find that societal trust exerts a negative effect on the likelihood of ISO 14001 certification. The negative relationship between societal trust and the likelihood of ISO 14001 is more pronounced for firms having intense collaboration with environmental groups. However, this effect appears to be weak in higher market uncertainty. These findings, besides significantly adding to the literature, have practical and managerial implications.     

MAPPING THE EVOLUTION OF ENERGY‐GROWTH NEXUS: SYNERGIES AND TRADE‐OFFS

The study explores the intellectual structure, development and evolution of energy crisis and economic growth research through bibliometric analysis of research articles on energy‐growth nexus from 2000 to 2017 by using Citespace where Gephi is used to analyse the authors collaboration. The analysis incorporates 27,152 references cited by 344 authors, in 1165 articles and from 330 journals. The results of study quantitatively present the most cited articles, authors, countries, institutions and intellectual structure with data visualization in the knowledge domain of energy‐growth nexus. The study categorizes the major research areas in energy‐growth nexus research as carbon dioxide emission, electricity consumption, heterogeneous Panel, real income, renewable energy and financial development. The study discusses emerging trends which provide the future research fronts and intellectual development within the framework of energy‐growth nexus.     

Anchoring-Adjusted Capital Asset Pricing Model

What happens when the capital asset pricing model is adjusted for the anchoring and adjustment heuristic of Tversky and Kahneman [1974 Tversky, A., and D. Kahneman. “Judgment Under Uncertainty: Heuristics and Biases.” Science, 185, (1974), pp. 1124–1131.[Crossref], [PubMed], [Web of Science ®] , [Google Scholar]]? The surprising finding is that adjusting the capital asset pricing model for anchoring provides a plausible unified framework for understanding almost all of the key asset pricing anomalies. The anomalies captured in the theoretical framework include the well-known size and value effects, high alpha of low beta stocks, accruals, low volatility anomaly, momentum effect, stock splits, and reverse stock splits. The market equity premium is also larger with anchoring. This suggests that the anchoring-adjusted capital asset pricing model may provide the needed unifying structure to behavioral finance.     

Anchoring-Adjusted Option Pricing Models

Relying on a useful starting point and attempting to adjust it appropriately is a robust human decision-making heuristic. Evidence suggests that underlying stock volatility is such a starting point, which is scaled up to estimate call option volatility. The author adjusts the Black-Scholes, Heston, and Bates models for reliance on this starting point. The adjustment mechanism captures several option-return puzzles. The adjusted Black-Scholes generates implied-volatility skew. The adjusted Heston stochastic-volatility model matches the same data better, does so at more plausible parameter values, and generates a steep short-term skew. Furthermore, 2 novel predictions are empirically tested and strongly supported in the data.     

Defying contextual embeddedness: evidence from displaced women entrepreneurs in Jordan

ABSTRACT

Although entrepreneurial practices and processes are evolving and changing globally, models of entrepreneurship remain masculinized, embedded in advanced economies and associated with notions of individual agency, heroism and control. Rarely is defiance considered. In this paper, we explore the defiance practices of displaced women operating in the Jordanian patriarchal economy and society and consider how this enabled their nurturing of entrepreneurship. Indeed, we argue that socially excluded women actually defy their contextual embeddedness through their entrepreneurial activities. In so doing, we respond to calls for research that explores the contextual embeddedness of women’s entrepreneurship, and contribute to shifting the focus towards the more silent feminine end of the entrepreneurial process. We consider the defiance of invisible displaced women entrepreneurs operating in the under-researched context of Jordan. Longitudinal, ethnographic investigation revealed the creation of a secret production network led by, and for, displaced women. This paper focuses on the five founders of this network, which they established to mobilize and manage the production of traditional crafts and, by so doing, to defy the stifling limitations imposed by their restrictive contractors, community and family members.     

A Creative Institutional Response to Twin Problems of Liquidity and Information Gaps in Certain Emerging Markets

We show that market makers in emerging markets of India and Pakistan developed a creative institutional response to solve the twin problems of liquidity and information gaps. These ‘institutional entrepreneurs’ developed a peculiar carryover transaction facility. A case can be made for finding other creative market responses in emerging markets that typically face similar problems.     

Knowledge Levels and their Transformation: Towards the Integration of Knowledge Creation and Individual Learning*

abstract This paper shows the link between knowledge creation and individual learning, and the coherence that exists between the knowledge creation view and single and double‐loop learning models. It does so by examining differences in levels of knowledge and their relationship with creativity and knowledge creating behaviours. The analysis shifts the focus from the abstract notion of tacit knowledge to a more specific discussion on creative human cognition. The paper is unique in adopting an endogenous perspective to the analysis of individual learning. The analysis is distinct from previous discussions on knowledge creation in three ways: (a) explicit and tacit knowledge are analysed in terms of the nature and degree of inter‐dependence that exists between the two; (b) knowledge levels are defined in terms of their applications rather than as abstract concepts; and (c) a distinction is made between shifts and movements in knowledge to separate, and subsequently integrate, the information processing and creative dimensions of learning. Further, the paper highlights specific challenges and limitations/costs that are associated with the transfer/acquisition of knowledge levels, and argues that in the absence of a conscious effort, knowledge levels are acquired through mistakes and failures. Following that, various theoretical and managerial implications to facilitate knowledge creation are discussed.     

Environmental management,nonmarket strategy,and firm performance in emerging markets: The case of ISO 14001

Firms use environmental management standards such as ISO 14001 to reduce the impact of business activity on the natural environment. Though these standards are widely celebrated on moral and ethical grounds, their implication for financial performance and competitiveness is equivocal. Drawing on neo-institutional theory, we conceptualize ISO 14001 as a nonmarket strategy and examine its impact on firm performance within the contexts of three highly polluted emerging markets – China, India, and Pakistan. Employing a rigorous event-study approach, we find that ISO 14001 certification has a negative impact on firms’ operating profitability and market value in both short and long runs. This negative impact appears to be stronger in contexts with weak institutions and poor environmental protection regimes. Further multivariate analyses show that the negative impact of ISO 14001 on firm performance is weaker among socially responsible firms and stronger among politically connected firms. These findings contribute to the environmental management literature. They also have practical implications for managers.