Research Highlights

Spring 2018

B. Espen Eckbo, the Tuck Centennial Professor of Finance and founding director of the Lindenauer Center for Corporate Governance

B. Espen Eckbo, the Tuck Centennial Professor of Finance and founding director of the Lindenauer Center for Corporate Governance

Recent Presentation
B. Espen Eckbo, the Tuck Centennial Professor of Finance and founding director of the Lindenauer Center for Corporate Governance

  • “Tradeoff Theory and Corporate Leverage Dynamics,” keynote address, Tunisian Society for Financial Studies Annual Meeting, December 2017
Phillip C. Stocken, the Jack Byrne Professor of Accounting

Phillip C. Stocken, the Jack Byrne Professor of Accounting

Accounting Standards, Regulatory Enforcement, and Innovation
Journal of Accounting and Economics, Forthcoming

Phillip C. Stocken, the Jack Byrne Professor of Accounting, and coauthor Volker Laux examine the effects of accounting standards and regulatory enforcement on entrepreneurial innovation and social welfare. They find that when regulatory penalties are relatively insensitive to the magnitude of the violation, optimal standards are sufficiently low enough that they induce full compliance and increase as the intensity of enforcement increases. In contrast, when regulatory penalties are sensitive to the magnitude of the violation, optimal standards induce non-compliance and decline as the intensity of enforcement increases.

Andrew Bernard, the Kadas T'90 Distinguished Professor

Andrew Bernard, the Kadas T'90 Distinguished Professor

Carry-Along Trade
The Review of Economic Studies, Forthcoming
Andrew Bernard, the Kadas T'90 Distinguished Professor, Emily Blanchard, associate professor of business administration, and coauthors Ilke Van Beveren and Hylke Vandenbussche, using novel linked production and export data at the firm-product level, find that the overwhelming majority of manufacturing firms export products that they do not produce. Three quarters of the exported products and thirty percent of export value from Belgian manufacturers, for example, are in goods that are not produced by the firm, so-called Carry-Along Trade (CAT). The number of CAT products is strongly increasing in firm productivity while the number of produced products that are exported is weakly increasing in firm productivity. The authors propose a general model of production and sourcing at multi-product firms and explore new demand- and supply-side modeling features capable of generating predictions consistent with the empirical findings. 

Presentation
Emily Blanchard, associate professor of business administration

  • “Canada’s Trade Policy Agenda: Looking Ahead,” The School of Public Policy and the Centre for International Governance Innovation Roundtable, November 2017
Emily Blanchard, associate professor of administration

Emily Blanchard, associate professor of administration

Laurens Debo, associate professor of business administration

Laurens Debo, associate professor of business administration

Referral Priority Program: Leveraging Social Ties via Operational Incentives
Management Science, Forthcoming
Laurens Debo, associate professor of business administration, and coauthor Luyi Yang investigate the referral priority program—an emerging business practice adopted by a growing number of technology companies that manage a waitlist of customers. Unlike more commonly used referral reward programs, this novel mechanism does not offer monetary compensation to referring customers, but leverages customers’ own disutility of delays to create referral incentives. Despite this appealing feature, the authors’ queueing-game-theoretic analysis finds the effectiveness of such a scheme as a marketing tool for customer acquisition and an operational approach for waitlist management depends crucially on the underlying market conditions, particularly the base market size of spontaneous customers. 

Adam Kleinbaum, associate professor of business administration

Adam Kleinbaum, associate professor of business administration

Similar Neural Responses Predict Friendship
Nature Communications, January 2018
Adam Kleinbaum, associate professor of business administration, and coauthors Carolyn Parkinson and Thalia Wheatley explore whether friendship, and more generally, social network proximity, is associated with increased similarity of real-time mental responding. The authors use functional magnetic resonance imaging to scan subjects’ brains during free viewing of naturalistic movies and found evidence for neural homophily: neural responses when viewing audiovisual movies are exceptionally similar among friends, and that similarity decreases with increasing distance in a real-world social network. 

Ellie Kyung, associate professor of business administration

Ellie Kyung, associate professor of business administration

Recent Presentations
Ellie Kyung, associate professor of business administration

  • “How Slider Scales Systematically Bias Willingness-to-Pay: Implicit Recalibration of Monetary Magnitudes,” Marketing Seminar Speaker, IDC Herzliya, November 2017
  • “How Slider Scales Systematically Bias Willingness-to-Pay: Implicit Recalibration of Monetary Magnitudes,” Society for Consumer Psychology Conference, February 2018
  • “How Slider Scales Change Willingness-to-Pay: Recalibrating the Mental Number,” Decision Processes Colloquia Speaker, Wharton, March 2018
Devin Balkcom, adjunct professor of business administration

Devin Balkcom, adjunct professor of business administration

“Knot Grasping, Folding, and Re-Grasping”
The International Journal of Robotics Research, February 2018
Devin Balkcom, adjunct professor of business administration, and coauthor Weifu Wang analyze the physical resources necessary and sufficient to tie a knot of given structure. The authors study how many re-grasps are sufficient to tie an arbitrary knot, and present an algorithm that can yield a small sufficient number of re-grasps to tie the given knot. Physical experiments in which different knots are tied and untied by robots, alone and in collaboration with a human, serve as a proof of concept to show the simplicity and correctness of the approach.

Thomas Lawton, visiting professor of business administration

Thomas Lawton, visiting professor of business administration

To Engage or Not to Engage with Host Governments: Corporate Political Activity and Host Country Political Risk
Global Strategy Journal, March 2018
Thomas Lawton, visiting professor of business administration, and coauthors Maria De Villa, Tazeeb Rajwani, and Kamel Mellahi, analyze how a host market’s institutional context can influence a multinational enterprise’s senior management’s choice and deployment of corporate political activity. 

Corporate Political Activity and Location-Based Advantage: MNE Responses to Institutional Transformation in Uganda’s Electricity Industry
Journal of World Business, November 2017
Lawton and coauthors Charles Mbalyohere, Roshan Boojihawon, and Howard Viney examine how multinational enterprises (MNEs) employ political strategies in response to location-based, institutional transformations in new frontier African markets. Effective MNE political strategies in these markets rely on nonmarket capabilities in political stakeholder engagement, community embeddedness, regional understanding, and responsiveness to stages of institutionalization.

International Political Risk Management: Perspectives, Approaches and Emerging Agendas
International Journal of Management Reviews, October 2017
Lawton and coauthor Anna John review the extant and emerging perspectives on, and approaches to, political risk management, particularly in the context of foreign direct investment. The authors identify and classify the various theoretical lenses in the domain of political risk management, and suggest a future research agenda.