Board Monitoring in a Privately Held Firm: When Does CEO Duality Matter? The Moderating Effect of Ownership

Drawing from agency theory and the attention‐based view of the firm, this study extends the understanding of the conditions under which CEO duality is negatively associated with board monitoring in a privately held firm context. Measuring monitoring in terms of board members’ involvement in behavioral control, output control, and strategy control tasks (Huse 2005 ), results show that CEO duality is significantly and negatively related only to the behavioral control task. In addition, we show that this negative effect is contingent on whether ownership is concentrated in the hands of a controlling shareholder as well as the type of controlling shareholder.     

Optimal unemployment insurance and redistribution

We characterize optimal income taxation and unemployment insurance in a search‐matching framework where both voluntary and involuntary unemployment are endogenous and Nash bargaining determines wages. Individuals decide whether to participate as job seekers and if so, how much search effort to exert. Unemployment insurance trades off insurance versus search and participation incentives. We also allow for different productivity types so there is a redistributive role for the income tax and show that a piecewise linear wage tax internalizes the macro effects arising from endogenous wages. Type‐specific lump‐sum taxes and transfers can then redistribute between individuals of differing skills and employment states. Our analysis embeds optimal unemployment insurance into an extensive‐margin optimal redistribution framework where transfers to the involuntarily and voluntarily unemployed can differ, and nests several standard models in the literature.     

Mapping the Topic Landscape of JPIM, 1984–2013: In Search of Hidden Structures and Development Trajectories

During the three decades since its inception in 1984, the JPIM has shaped the evolution of innovation research as a scientific field. It helped create a topic landscape that is not only more diverse and rich in insights, but also more complex and fragmented in structure than ever before. We seek to map this landscape and identify salient development trajectories over time. In contrast to prior citation‐based studies covering the first two decades of JPIM research, we benefit from recent advances in natural language processing and rely on a topic modeling algorithm to extract 57 distinct topics and the corresponding most common words, terms, and phrases from the entire full‐text corpus of 1008 JPIM articles published between 1984 and 2013. Estimating the development trajectory of each topic based on yearly publication counts in JPIM allows us to identify “hot,” “cold,” “revival,” “evergreen,” and “wall‐flower” topics. We map these topics onto the Product Development and Management Association (PDMA) Body of Knowledge categories and discover that these categories differ significantly not only in terms of their internal topic diversity and relative prevalence, but also—and arguably more importantly—in terms of their publication and citation trajectories over time. For instance, the PDMA category “Codevelopment and Alliances” exhibits only moderate topic diversity (7 out of 57 topics) and prevalence in JPIM (161 out of 1008 articles). That said, it is among the most dynamic categories featuring two evergreen topic (“Users and Innovation” and “Tools and Systems for Technology Transfer”) and three hot topics (“Open Innovation,” “Alliances and Cooperation,” and “Networks and Network Structure”) as well as a sharply growing annual number of citations received. Our findings are likely to be of interest to all those who are keen to (re)discover JPIM's topic landscape in search of hidden structures and development trajectories.     

Weak links and the management of reputational interdependencies

This paper builds on a growing literature that takes into account the fact that firms in an industry may be interdependent with regard to their corporate reputations, thus sharing a “reputation commons.” We argue that the theory of public goods can help us to understand the interdependencies that link corporate reputations and to frame the contexts and requirements for collective action that they induce. In particular, we suggest that more and more frequently these interdependencies make industry reputation a “weak link” public good. We show that this raises new challenges for the strategic management of industry reputation by communities of firms. The discussion of these challenges is based on the case study of the collective action of the European chlorine companies towards restoring their reputation after being accused of not being safe, and on a model of the production of reputation by companies. Copyright © 2013 John Wiley & Sons, Ltd.     

Multivariate models of hotel occupancy performance and their implications for hotel marketing

Multivariate models are developed to explain the differential occupancy performance of a sample of 279 English hotels. Following a procedure established in an earlier paper, hotels are first differentiated on the basis of their overall occupancy performance, seasonality, long‐term trend and length of season. Regression models are specified and calibrated to relate each of these dimensions of occupancy performance to the location and other characteristics of the hotels. The four models produce the expected positions of hotels in ‘occupancy performance space’, against which their observed positions can be compared. The application of the models in hotel marketing is discussed and demonstrated. Copyright © 2001 John Wiley & Sons, Ltd.     

Hours risk and wage risk: repercussions over the life cycle*

We decompose earnings risk into contributions from hours and wage shocks. To distinguish between hours shocks, modeled as innovations to the marginal disutility of work, and labor supply reactions to wage shocks, we formulate a life-cycle model of consumption and labor supply. For estimation, we use data on married American men from the Panel Study of Income Dynamics. Permanent wage shocks explain 31 percent of total risk, permanent hours shocks 21 percent. Progressive taxation attenuates cross-sectional earnings risk, but its life-cycle insurance impact is much smaller. At the mean, a one-standard-deviation hours shock raises lifetime income by 11 percent, a wage shock by 13 percent.