Worldwide reach of short selling regulations

We characterize legality and incidence of short selling in a worldwide, multimarket framework. Home country short selling restrictions curtail home market stock borrowing by 45% and reduce short selling of the country's American Depository Receipts (ADRs) by 68% due to regulatory reach. Also, the 2008 US ban on short selling of financial firms reduced borrowing in foreign locations. These findings are robust to controls for option availability, enforcement, returns, firm size, trading volume, dividends, ADR level, volatility, days-to-cover, and industry sector. Further, we show that investor conduct resulting from adherence to professional standards is a more powerful mechanism of regulatory reach than intergovernment cooperation.     

Organizationally-relevant configurations: the value of modeling local dependence

Configurations are important across all levels of organizations. Despite the interest in and importance of configurations in research for organizations, the empirical methods for assessing and classifying configurations has not kept pace with the theoretical advancements. Theory suggests that configurations must include aligned elements that have local dependence. Local dependence is defined as the interrelationships among variables necessary to form an internally consistent configuration. We explain how latent class cluster analysis (LCCA) enables modeling for local dependence and provides theoretical and methodological value for configurations researchers. Using primary data from two samples, we demonstrate that LCCA with local dependence outperforms traditional cluster analysis-based approaches. Our method can be used for detecting configurations at a variety of organizational levels (e.g. nation, industry, firm, and group).     

How information systems help create OM capabilities: Consequents and antecedents of operational absorptive capacity

In contemporary business environments, the ability to manage operational knowledge is an important predictor of organizational competitiveness. Organizations invest large sums in various types of information technologies (ITs) to manage operational knowledge. Because of their superior storage, processing and communication capabilities, ITs offer technical platforms to build knowledge management (KM) capabilities. However, merely acquiring ITs are not sufficient, and organizations must structure information system (IS) designs to leverage ITs for building KM capabilities. We study how technical and strategic IS designs enhance operational absorptive capacity (OAC) – the KM capability of an operations management (OM) department. Specifically, we use a capabilities perspective of absorptive capacity to examine potential absorptive capacity (POAC) and realized absorptive capacity (ROAC) capabilities – the two OAC capabilities that create and utilize knowledge, respectively. Our theory proposes that integrated IS capability, – an aspect of technical IS design – is an antecedent of POAC and ROAC capabilities, and business-IT alignment – an aspect of strategic IS design – moderates the relationship between integrated IS capability and ROAC capability. Combining data gleaned from a multi-respondent survey with archival data from COMPUSTAT, we test our hypotheses using a dataset from 153 manufacturing organizations. By proposing that IS design enables an OM department's KM processes, i.e., the POAC and ROAC capabilities, our interdisciplinary theoretical framework opens the “black box” of OAC and contributes to improved understanding of IS and OM synergies. We offer a detailed discussion of our contributions to the literature at the IS-OM interface and implications for practitioners.     

Sales force modeling: State of the field and research agenda

Inspired by Erin Anderson’s contributions to sales force research, this paper focuses on research that utilizes quantitative models to investigate important questions in sales force management. The purpose is to summarize several significant developments in knowledge over the last 40 years and identify major opportunities for impactful theoretical, empirical, and decision model-based research in the future.     

Trends in occupational mobility in France: 1982–2009

Are labor markets more turbulent now than thirty years ago? Most job and worker flows imply that the answer is “no”, with one exception: occupational mobility, which increased substantially in the United States. This paper remedies the lack of comparable evidence by focusing on France for the years 1982 to 2009. After correcting for various statistical biases and discrepancies that affect the measurement of occupational mobility, it documents this reallocation process overall and in different subgroups. The data reveal that, over the period considered, the fraction of workers switching occupation exhibits no trend in the aggregate because changing demographics mask increases in mobility within several age and education groups. After taking these composition effects into account, occupational mobility increased sharply in France as well.     

Commonality in liquidity and multilateral trading facilities

We use the introduction of two multilateral trading facilities (MTFs) to examine the impact of market fragmentation on commonality in liquidity. We find that the introduction of MTFs following the Markets in Financial Instruments Directive increases the comovement of stocks’ liquidity with MTF liquidity, while the comovement with the home market liquidity generally decreases. We also find that the higher the MTF trading volume or the number of MTFs trading a stock, the stronger the effect. Further, we find that the commonality in liquidity remains unchanged for a matched control sample of stocks that do not trade on MTFs.     

Measuring entrepreneurial passion: Conceptual foundations and scale validation

Along with other affective and emotional dimensions, passion is at the heart of entrepreneurship. Yet past research on entrepreneurial passion (EP) has been hindered by the lack of a sound measurement instrument. Through a series of empirical studies conducted with samples from relevant populations, we develop and validate an instrument to capture EP and its inherent dimensions. We show that the task-specific dimensions of EP (intense positive feelings toward the domains of inventing, founding and developing, and the centrality of these domains to entrepreneurs' self-identity) are conceptually and empirically distinct from one another, and from other emotions and cognitions known to play a role in entrepreneurship. Our theory and results indicate that proper measurement of entrepreneurial passion incorporates the interaction between entrepreneurs' feelings and identity centrality for each domain. We discuss the implications of our model, instrument and findings for future research on the affective components of innovation and entrepreneurship. We also develop specific guidelines for using our validated instrument in future research.     

Investor protection and cash holdings: Evidence from US cross-listing

This paper examines (i) whether the level of firms’ cash holdings differ depending on the strength of investor protection, (ii) whether excess cash holdings are valued more with better investor protection, and (iii) whether cross-listed firms that improve investor protection through “bonding” hold relatively more cash than non-cross-listed firms. We analyze 1405 ADR firms and their corresponding matched firms from 39 different countries and document that ADR firms have significantly higher cash holdings relative to their non-cross-listed peers, especially in recent years. The increase in cash holdings is much higher for emerging market firms because of their transition from particularly poor home country investor protection and accounting standards before cross-listing to much higher standards after cross-listing. In addition, firms with level III ADR listing, which represents the strongest investor protection, have higher cash holdings relative to other types of ADR firms.     

Commitment to a Process Innovation: Nucor, USX, and Thin-Slab Casting

This paper studies the order of adoption of a process innovation, thin-slab casting, by U.S. steel makers. A game-theoretic model of technology adoption with capacity constraints indicates that incumbents are likely to trail entrants in adopting process technologies that reduce the minimal scale required to compete. Evidence from the case study also indicates, however, that the sorts of interactive effects emphasized by game-theoretic models may be dominated by the effects of competitors' heterogeneous precommitments.