Organization Capital and Expected Returns in Service and Non‐Service Firms: Evidence from Thailand

Organization capital provides firms with competitive advantage, but because of its intangible and movable nature, investors view firms with high organization capital as risker and demand additional risk premia. Similar to Eisfeldt and Papanikolaou (2013), we find that firms in the Stock Exchange of Thailand with highest organization capital earn abnormal returns of 0.75% per month relative to the four‐factor asset pricing model. In addition, we also document that the organization capital risk premium is more relevant for service firms than non‐service ones.     

Are consumers forward looking? Evidence from used iPhones

This study examines the impact of planned obsolescence – the introduction of new models to make existing models obsolete – on secondary markets for mobile phones. Using data of over 320,000 used iPhones listings on Thailand’s largest online marketplace, we document that iPhone prices decrease with age, around 2.8–3.2% for each passing month. We find no evidence that the price decline accelerates after launches of new models (i.e. obsolescence), lending support to the view that consumer in durable goods markets are rational and forward looking.