Risk Factors That Matter: Textual Analysis of Risk Disclosures for the Cross-Section of Returns

Working Papers

What are the fundamental risks in the economy? Which risks are systematic? Which risks are priced? Are the risks summarized well by existing models? I use machine learning to identify the risks that firms face based on their annual reports. Read More

Experimentation and Appropriability in Early-Stage Ventures: Evidence from the U.S. Software Industry

Working Papers

This study examines the tension between learning and appropriability in the experimentation process of early-stage ventures. I build a stylized model to argue that, when formal intellectual property is weak, the learning benefit of experimentation may be offset by its imitation risk. Read More

The Enemy of My Enemy Is My Friend: A New Condition for Two-sided Matching with Complementarities

Working Papers

For relatively large firms, especially multinationals, it is often a difficult human resource task to assign employees to different country offices, departments, divisions, or teams in the best possible way. This task can be extremely delicate and complex, especially when a company has many employees to go through the (re)assignment process. Read More

Big Pushes, Little Hollywoods: Local Economic Development Effects of Film Tax Credit Lotteries

Working Papers

The extent to which local incentive policies (such as subsidies and tax credits) are effective at spurring new centers of innovation, and whether these incentives induce overall productivity growth or just a shift of production from one region to another, is the subject of this proposal.Read More

Who Benefits from Having a Partner? Intrinsic Motivation, Partnership Decisions, and the Chance of Becoming a Profitable Firm

Working Papers

Entrepreneurs and entrepreneurial firms are often the drivers of innovation, and success for entrepreneurial firms often means development and introduction of innovative products and services. This project examines the role that having a partner plays in early-stage entrepreneurial firm performance.Read More

Firm Responsiveness to Location Subsidies: Regression Discontinuity Estimates from a Tax Credit Formula

Working Papers

In 2011, California Governor Jerry Brown recognized several of the state’s existing firm incentive policies aimed at catalyzing innovative activity in the state, to be ineffectual, citing poor incentive design.Read More

Do Ratings Cut Both Ways? Impact of Bilateral Ratings on Platforms

Working Papers

Bilateral rating systems impact pricing and capacity in two-sided markets. The bilateral rating mechanisms will enable customers to maintain and care for shared services, through reputational mechanisms, increasing social welfare. Read More

Unlocking Value from Startups’ Ties to Established Firms: The Role of the Entrepreneurs’ Background

Working Papers

Evidence on whether startups benefit from corporate venture capital investment is equivocal. Research suggests that the principal impediment to value creation in these relationships for startups is the complexity of the larger organization – the varying incentive structures, layers of bureaucracy and convoluted decision-making processes that limit their access to valuable resources. Read More

Are Closer Workers More Productive?

Working Papers

We examine the effects of workplace-home distance on worker productivity. We construct a novel panel of U.S. inventors with precisely measured workplace-home distances and a direct measure of productivity via patents. Read More

Organizational Change and the Dynamics of Innovation: Formal R&D Structure and Intrafirm Inventor Networks

Working Papers

Prior studies have shown associations between organizational structure and innovation. However, most have been static and cross sectional, only showing variation across firms. This gap is problematic because it is not clear if firms can use structure as a lever to direct their research outcomes.Read More

Happy Ever After? Collaborative Experience, Collaborative Performance, and Subsequent Independent Product Innovation

Working Papers

This study examines the extent to which firms that are collaborating with other firms in a particular area of business subsequently change modes of governance and undertake independent activities in the same area of business. Read More

Resource Competition, Amplification, and the Evolution of Performance Differences

Working Papers

How do ex ante similar firms develop heterogeneous resource positions that lead to persistent performance differences, even among direct competitors? The model in this paper shows that resource competition drives amplification of small differences in resource positions into large performance differences.Read More

Risk Sharing Agreements for New Medical Treatments

Working Papers

The clinical-trial data used to make approval decisions for medical therapies are collected from a relatively small patient sub-populations. Given small sample sizes, trial data may suggest that treatments are medically or economically nonviable, even though they ultimately may be, or vice versa. Read More

Blockchain and the Value of Operational Transparency

Working Papers

The project aims to explore the extent to which blockchain technology can be ported to alleviate information asymmetry issues in the context of supply chain financing. In particular, firms seeking the capital needed to efficiently run their operations are often impeded by severe information asymmetry issues. Read More

Needless Distraction or Font of Knowledge: Understanding the Relationship between Divestitures and Innovation

Working Papers

Few studies have examined the impact of divestitures on the innovation performance of firms. In particular, little attention has been paid into how the divestiture of firms’ non-core businesses could influence the innovation outcomes of their core businesses. Read More

Why Do Firms Offer Dicey Perks? The Case of Unlimited Vacation

Working Papers

The use of employee perks is becoming increasingly important to organizational competitiveness. Consequently, innovating along the human resource dimension has become a strategy imperative for many firms. Typically, firms introduce perks that are complementary to work. However, another set of perks that makes it easier for people to leave the workplace has gain more popularity over time. Read More

When Time-Off Sparks Time-At-Work: Time-Off as a Source of Competitive Advantage for Innovation

Working Papers

The management view of human capital as a source of sustained competitive advantage
has driven research on how strategic human resource practices affect organizational performance. This paper focuses on how a firm’s time-off policy can be a source of competitive advantage in entrepreneurial settings, particularly for innovation.Read More