Articles tagged with Corporations
A new study from Binghamton University finds that preannouncement marketing can positively impact stock market reactions, especially when it comes to costless approaches. The researchers analyzed 149 product launch events and found that surprise effects and information asymmetry can also play a role in shaping market expectations.
A new study by Zachary Kowaleski found that RegTech investments can have operational benefits for large broker-dealers, including improvements in customer relations and employee monitoring. However, small companies were more negatively affected, with profits dropping by an average of over 10 times the apparent savings.
A new study published in the Strategic Management Journal suggests that startups are more vulnerable to innovation imitation due to knowledge spillovers and university endorsements. The study found that startups' patents receive fewer citations than established companies', despite accounting for a higher percentage of total patents.
State-owned enterprises experience greater regulatory scrutiny in foreign acquisitions, but acknowledging social and political dynamics can help temper this liability. SOEs can also work with local communities to overcome negative perception by acquiring firms through subsidiaries or committing to local employment, reducing additional ...
A study by the University of Bath and Queensland University of Technology found that non-executive directors who serve beyond recommended tenure limits prioritize their social status over their duty to shareholders. Prolonged tenures can compromise board renewal, financial performance, and governance concerns for boards and shareholders.
The book provides a systematic analysis of the Chinese credit bond market, covering institutional, technological, macroeconomic, and microeconomic factors. It offers tools for investors, fund managers, researchers, and university students to understand the market's evolution, existing problems, and development direction.
New research from Texas McCombs found that startups have an outsized number of future citations, sparking more innovation in emerging industries like photovoltaic cells. Startups' inventions are more likely to be cited by universities and companies due to resource disparities, academic citations, and prior lawsuits.
Researchers developed an AI framework to identify vulnerable consumers, address their needs, and mitigate potential discrimination. The framework provides real-time analysis of consumer chat responses to build risk scores and offer customized tips to customer service agents.
A new paper by VCU's Christopher S. Reina offers a roadmap for businesses to integrate mindfulness, wisdom, and ethics to support employee well-being. The research demonstrates that transforming organizations is a matter of rethinking their ethos and grounding it in humanistic principles.
A study by University of Waterloo researchers found that corporate investing in communities decreased despite an increase in companies committing to the United Nations' Sustainable Development Goals. The results indicate 'SDG-washing', where public pledges aren't translating into socially responsible investments.
A new model shows that boards should invest more resources to confirm the CEO's plan when they are mildly overconfident. However, if the CEO is highly confident, the board should act as a monitor and only intervene if necessary. In extreme cases, visionary CEOs may be allowed to run with their ideas without intervention.
A new study suggests climate activists are increasingly adopting 'insider' activist roles, working within their own organizations to drive meaningful change. Researchers identify different types of activists, including those who seek to undermine or challenge organizations, highlighting the growing importance of collaborative and conte...
Research from Drexel University finds that customers are more likely to remain loyal to a grocery store when using regular checkout service. The perceived ease of checkout, sense of entitlement, and number of items purchased play a role in explaining the effect of loyalty.
A study by Chung-Ang University found that electronic voting enhances shareholders' perception of corporate governance, increasing the market value of a firm's cash holdings. Firms with larger free cash flows and minority ownership saw stronger governance effects from adopting electronic voting.
A new study identifies public and private companies operating in economic sectors associated with increased risks of emerging infectious diseases. Financial actors can mitigate these risks through investments that promote ecological restoration, pathogen surveillance systems, and community health care.
Research by Cornell University experts found that companies must demonstrate long-term commitment to diversity and racial equity to convey allyship to Black Americans. Costly actions alone are insufficient, with consistency being the key factor in perceived authenticity.
A new study published in PLOS ONE found that the effective tax rate paid by multinational corporations varies greatly across countries, with some paying as little as 1% of gross income and others up to 67%. This disparity highlights the need for better data on tax rates to inform policy decisions.
A recent study found that recruiters are less likely to rank former startup founders as top candidates due to biases in evaluating their skills and cultural fit. Smaller companies and recruiters with entrepreneurial aspirations tend to view entrepreneurs more favorably, but overall, startups remain less hireable than corporate executives.
A new study from Bayes Business School found that CEOs' surnames can significantly impact their total compensation by up to 4.9%. The research highlights organizational bias and inefficient contracting decisions based on surname attributes, which can affect talent recognition and rewards.
Researchers from Pusan National University have developed pricing formulas for vulnerable timer options, which can help reduce investment risks. The study found that these options are more effective than standard timer options in managing credit risk.
New research found that companies are altering their sustainability reports to improve their environmental and social performance metrics, which are tied to CEO bonuses. Only 15% of revisions were reported as due to error, while 69% were attributed to changes in measurement, suggesting manipulation may be occurring.
Research reveals that firms with female directors show improved social and environmental performance and disclosures. Female directors' education level also positively affects reporting quality, with those holding a master's degree having the most significant impact.
Researchers found that companies declaring bankruptcy must navigate complex buyer-supplier relationships to emerge from bankruptcy. High rates of accommodative acts, indicating cooperation, improve bankruptcy survival, while exploitative acts have the opposite effect.
A recent study by University of Texas at Austin professor Robert Parrino found that the SEC's Rule 10b5-1 has limited effectiveness in limiting insider trading. Despite being widely used, the rule allows CEOs to game the system by canceling trades or using limit orders within the plan.
Research by Dr Clive Boddy of Anglia Ruskin University reveals warning signs for corporate psychopaths in finance and politics. These include superficial charm, lack of remorse, and ruthless self-serving behavior.
A recent study by Carnegie Mellon University and ShanghaiTech University found that China's government subsidies have had limited effect on promoting firms' productivity. The study analyzed firm-level data from 2007 to 2018 and found that subsidies often flowed to less productive firms, leading to a decline in their relative productivity.
Research found that DEI initiatives for vulnerable groups, like LGBT and military veterans, affect stock prices differently depending on the presidency. Companies with DEI for these groups saw higher or lower stock returns during Obama and Trump presidencies respectively.
Companies perceived as more trustworthy and committed to diversity when revealing struggles with racial diversity, according to research published by the American Psychological Association. Disclosing negative data signals genuine progress, rather than suppressing it.
Researchers have developed high-resolution near-eye displays with integrated light field technology, overcoming limitations of earlier displays. The new designs feature improved resolution, pixel density, and vision correction capabilities, resulting in enhanced visual comfort and immersive VR experiences.
Researchers found that regulations aimed at improving financial reporting requirements may have led to decreases in corporate spending on innovation, capital improvements, and mergers and acquisitions. Companies were reluctant to report uncertainty regarding their tax burden in public-facing financial statements, leading to a decline i...
Marketing ideation crowdsourcing contests can send positive signals to facilitate returns, but also elevate idiosyncratic risk. Firms that design profitable contests by targeting professionals, using crowd voting, and specifying task scope tend to see stronger stock price increases.
Researchers found that Chinese executives prioritize communicating long-term stability and inspiring confidence among diverse stakeholders. In contrast to US firms, Chinese companies tend to work closely with stakeholders like debt holders and controlling shareholders to reduce fluctuations.
Corporate scandals have led to increased scrutiny of corporations' ethics culture. New research from the University of Notre Dame reveals that firms are addressing this issue through longer and more moralized public ethics documents, often with notable changes in language.
A recent study from the UBC Sauder School of Business found that people's perceptions of EDI leaders are influenced by racial stereotypes. Participants in the study were asked to identify necessary traits for EDI leaders and associate different traits with various racial groups, revealing a strong bias towards non-white individuals bei...
A Lancaster University-led study found that corporate-led ecosystem restoration projects often fail to report ecological outcomes, invest sufficient funds, or clearly state their aims. The research highlights the need for improved transparency and consistent reporting to ensure the effectiveness of these initiatives.
Researchers synthesized over 50 studies to find that mental simulations using visuals or verbal calls to action improve behavioral intentions and behavior. However, the effectiveness varies depending on the modality, frequency, type of consumption experience, and target populations.
Researchers found that consumers react differently to university-co-developed products and key factors influence these perceptions. Firms can leverage university collaboration to increase product attractiveness, but effective marketing is crucial.
A new study highlights the key problem with how computer security guidelines are created, citing complexity and lack of prioritization as major issues. Researchers recommend curating information and using clear messaging to make guidelines more accessible and user-friendly.
Forcing private firms to disclose their financial statements leads to more mergers and acquisitions (M&As) and better deals. The study found that mandatory reporting intensity is positively correlated with M&A activity and targets' growth rates after the acquisition.
Researchers found that investors evaluate a company's environmental performance based on financial materiality, providing a better perspective for understanding environmental risks. The study analyzed data from 1,766 companies and identified three key findings: varying evaluation criteria, shareholder risk perception, and the importanc...
Researchers found that companies use a variety of strategies to hide their political activities, including those below the surface not observable by public, according to McCombs School of Business Associate Professor Tim Werner. The study provides insight into corporate decision-making and can inform policies related to transparency
A new study finds that long-term disinvestment in health and wealth resources in historically redlined neighborhoods contributes to a disproportionate rate of kidney failure among Black adults. Redlining, the discriminatory federal housing policy from the 1930s, has been associated with current racial inequities in poor health outcomes.
A new study by University of Arkansas researchers found that local newspaper coverage significantly improved the general information about public companies, leading to lower stock volatility and more accurate financial forecasts. Conversely, declining local news coverage increased stock volatility, information asymmetry, and illiquidity.
Researchers found that manual labor's perceived meaning can predict the adoption of autonomous products. Consumers tend to reject these products due to a loss of meaning in life. Companies can highlight alternative sources of meaning to reduce negative effects on adoption.
A University of Washington study examines the effects of strategy courses on MBA students' decision-making abilities, industry concerns, and mental representations. The results show that strategy courses improve accuracy, increase attention to broader details, and boost confidence among students.
A new study finds that placing discounted products next to regularly priced items can have both negative and positive effects on demand for other products. The Negative Proximity Effect decreases the sales of proximal products, while the Positive Proximity Effect increases their sales.
A study by Anne Jacqueminet and colleagues identifies three favorable patterns for positive media coverage: congruent signalers, balancing signalers, and firms using a combination of less credible signals. Highly credible third-party signals play a complex role in media perception, delivering a single congruent message.
A study found that countries offering tax breaks for corporate innovation see greater economic growth in capital investment and highly compensated jobs. However, the impact on hiring or overall compensation is limited, with increased average pay for research and development workers instead.
A new study from the University of Texas at Austin found that internal job candidates are more likely to be promoted, even if they're less qualified than external candidates. The research showed that managers prefer to reward past effort and perceive it as a 'gift' that should be reciprocated.
A new study published in Strategic Management Journal found that evaluators separate ideas from proposers, suggesting that hiding the identity of idea proposers may not improve evaluation. The researchers tested three potential biases and replicated their findings with a larger sample size.
A study by Anglia Ruskin University found that Madoff's business dealings, trial, and prison time revealed a high score on psychopathy scales. The research warns companies to identify and prevent corporate psychopaths who can bring down organizations and economies through recklessness and greed.
A new study from the University of Missouri found that government guarantees decrease the frequency of 'income smoothing' in financial reports. This practice, where banks delay reporting high income to smooth out volatility, is a form of manipulation that can impact market stability and investor confidence.
Researchers identified two crucial drivers of brand extension success: parent brand equity and extension fit. The study suggests five groups of moderators to improve brand extension strategies.
A study by the University of Toronto found that intervening at the management practice level can empower workers and significantly raise wages in sustainable ways. H&M Group's initiative, which included workplace dialogue programs and wage management systems, resulted in a 5% average wage increase across 1800 factories in nine countries.
A new study found that job candidates who are exposed to social impact framing tend to refrain from negotiating for higher salaries due to feelings of discomfort. The researchers suggest that managers should be aware of this phenomenon and create greater transparency about company norms and values regarding compensation.
A new study by Duke University, University of Notre Dame, and Microsoft proposes a solution to reduce deceptive comparison pricing: requiring firms to disclose their true normal price. The study finds that providing this information can moderate the effect of advertised regular prices on consumer behavior.
A UBC study found that employee layoffs have a strong impact on voluntary turnover among remaining employees, especially when high performers are let go without clear justification. The research suggests that organizations should prioritize clear communication and compassionate decision-making to avoid destabilizing their workforce.
Research finds that using unconventional spellings can lead to decreased consumer trust and loyalty, but may have positive effects in contexts where consumers seek a memorable experience. The study suggests caution for firms launching new brands with unusual spellings.
A recent study by Sara Valentini and colleagues at Bocconi University found that consistency between online content and the values associated with a brand increases rebroadcasting frequency. Posts containing price promotions also perform well when aligned with the brand's identity, with followers being 109% more likely to share them.
New research finds that most corporations that face significant inflation risk have failed to disclose it, causing $0.9 trillion to $2.8 trillion in shareholder damages. Companies with high exposure to inflation risk have seen their share prices drop following inflation shocks.