Cross-section of option returns and volatility

We study the cross-section of stock option returns by sorting stocks on the difference between historical realized volatility and at-the-money implied volatility. We find that a zero-cost trading strategy that is long (short) in the portfolio with a large positive (negative) difference between these two volatility measures produces an economically and statistically significant average monthly return. The results are robust to different market conditions, to stock risks-characteristics, to various industry groupings, to option liquidity characteristics, and are not explained by usual risk factor models.     

What Do We Know about Trade Promotions? Contributions,Limitations, and Further Research

The trade promotion area remains seriously under-researched compared with its share of the overall marketing mix budget. This review attempts to provide an up-to-date account of what we know about trade promotions. For eight major topics we elaborate on what that topic means in the context of trade promotions, why it has been deemed important, what empirical findings have emerged in that area, and proposeareas for future research.     

Affiliated firms and financial support: Evidence from Indian business groups

We investigate the functioning of internal capital markets in Indian Business Groups. We document that intragroup loans are an important means of transferring cash across group firms and are typically used to support financially weaker firms. Evidence suggests that an important reason for providing support may be to avoid default by a group firm and consequent negative spillovers to the rest of the group. Consistent with such spillovers, the first bankruptcy in a group is followed by significant drops in external financing, investments and profits of other firms in the group and an increase in their bankruptcy probability.     

Healthcare resource utilization and costs by age and joint location among osteoarthritis patients in a privately insured population

Aims: To compare healthcare resource utilization and costs between patients aged 18–64 years with osteoarthritis (OA) and matched controls without OA in a privately insured population.

Methods: Patients with OA were selected from de-identified US-based employer claims (Q1:1999–Q3:2011). The index date was defined as the first OA diagnosis indicated by ICD-9-CM codes. One year before and after the index date were defined as the baseline and study periods, respectively. A second OA diagnosis during the study period was also required. Patients with OA were matched one-to-one on age, gender, index date, and minimum length of follow-up to controls without OA. Baseline characteristics and study period resource utilization and costs (2016 USD) were compared between cohorts.

Results: This study identified 199,539 patients with OA (knee: 87,271, hip: 19,953, hand: 15,670, spine: 12,496). The average age was 54 years, and 58% were female. OA patients had higher healthcare resource utilization than matched controls in inpatient, emergency room, and outpatient settings (p?p?Limitations: This sample, obtained using claims data, only includes patients who were actively seeking care for OA and were likely symptomatic. Asymptomatic patients would likely not be captured in this analysis.

Conclusions: Patients with OA incur greater healthcare resource utilization and costs than patients without OA, with substantial variation by joint location.     

Market-focused strategic flexibility: Conceptual advances and an integrative model

This article develops the concept of market-focused strategic flexibility. It begins with a review of the historical perspectives of strategic flexibility. To support the conceptualization, the authors offer a theoretical schema that considers market-focused strategic flexibility as conceptually rooted in capabilities theory, resource-based views of the firm, and options. With the conceptualization in place, the authors propose an integrative model that explicates the mediating role of market-focused strategic flexibility in marketing strategy frameworks. Propositions are developed relating market-driven and driving orientations to market-focused strategic flexibility with consideration for how turbulent macro environments modify the relationship. In addition, the authors offer propositions regarding outcomes of market-focused strategic flexibility under conditions of macro environmental turbulence. Jean L. Johnson is an associate professor of marketing at Washington State University. Her research includes partnering capabilities development in, and management of, interfirm relationships and management of international strategic alliances. Her research appears in journals such as theJournal of Marketing, theJournal of International Business Studies, theJournal of the Academy of Marketing Science, and theInternational Journal of Research in Marketing. She serves on the editorial boards of theJournal of Marketing and theJournal of the Academy of Marketing Science and reviews for others. She spent several years in the advertising industry and has lived, taught, and conducted research in France and Japan. Ruby Pui-Wan Lee is a doctoral candidate in the marketing department at Washington State University. Her areas of research include interfirm relationships marketing strategy, and international marketing. She has presented papers at major conferences. In addition, her research has appeared in the theJournal of Advertising Research and theJournal of International Consumer Marketing. Amit Saini is a doctoral candidate in marketing at Washington State University. He conducts research in the area of marketing strategy implementation, technology-marketing interface, e-commerce strategy, and customer relationship management. He has presented papers at major conferences, and his research appears in theAmerican Marketing Association—Marketing Educator's Conference Proceedings. His industry experience includes sales management and quantitative market research. Bianca Grohmann is an assistant professor in the John Molson School of Business at Concordia University. She received her Ph.D. from Washington State University in 2002. Her research focuses on consumer behavior issues such as gift giving, selfprophecy, and consumer response to sensory stimuli in purchase situations. She has made numerous presentations at major conferences such as those of the Association for Consumer Research and the Society for Consumer Psychology.