The uncertainty-of-outcome hypothesis and the industrial organization of sports leagues: Evidence from US College football

E. Woodrow Eckard
Journal of Sports Economics, September 2017, Vol. 18 Issue 3

The uncertainty-of-outcome hypothesis (UOH) posits that sports fans value competitive contests, implying that competitive imbalance within a league will motivate stronger teams to leave. Testable hypotheses can be formulated utilizing the many college football conference realignments over the last century. The results support the UOH. For example, schools leaving an existing conference to form a new major conference, or join a preexisting one, were on average stronger than their former associates in the years before their departure. Also, the number of seed conference championships won by departing schools generally exceeded their “fair share” under an equal-likelihood assumption.

The Influence of Hierarchy on Idea Generation and Selection in the Innovation Process

Dongil (Daniel) Keum and Kelly E. See
Organization Science, Vol. 28, Issue 4, July-August 2017, pp. 653–669

The link between organizational structure and innovation has been a longstanding interest of organizational scholars, yet the exact nature of the relationship has not been clearly established. Drawing on the behavioral theory of the firm, we take a process view and examine how hierarchy of authority – a fundamental element of organizational structure reflecting degree of managerial oversight – differentially influences behavior and performance in the idea generation versus idea selection phases of the innovation process. Using a multi-method approach that includes a field study and a lab experiment, we find that hierarchy of authority is detrimental to the idea generation phase of innovation, but that hierarchy can be beneficial during the screening or selection phase of innovation. We also identify a behavioral mechanism underlying the effect of hierarchy of authority on selection performance and propose that selection is a critical organizational capability that can be strategically developed and managed through organizational design. Our investigation helps clarify the theoretical relationship between structure and innovation performance and demonstrates the behavioral and economic consequences of organizational design choice.

Factors affecting the long-term survival of eBay ventures: a longitudinal study

Dawn Gregg and Madhavan Parthasarathy
Small Business Economics, Vol. 49, Issue 2, August 2017 pp. 405–419

With 40% of the world able to access the internet, online marketplaces provide the small entrepreneur with a hitherto incomprehensible opportunity to reach a global audience with very low barriers to entry and low risk. Yet, academic research has not studied the factors unique to online businesses that affect their long-term survival. This study is the first of its kind that does so using data gathered from eBay’s feedback system in 2004, 2009, and 2013. The results present data on the rate of discontinuance of eBay ventures. Further, a logistic regression analysis suggests that unique factors such as venture size, age, and feedback reputation positively influence the likelihood of long-term survival of an eBay venture. Based on these results and the ensuing discussion, implications for researchers and practitioners are provided.

Virtual team effectiveness: The role of knowledge sharing and trust

Mohamed Alsharo, Dawn Gregg and Ronald Ramirez
Information and Management, Vol.
54, Issue 4, August 2017, Pages. 479-490

Organizations utilize virtual teams to gather experts who collaborate online to accomplish organizational tasks. The virtual nature of these teams creates challenges to effective collaboration and team outcomes. This research addresses the social effects of knowledge sharing on virtual teams. We propose a conceptual model which hypothesizes a relationship between knowledge sharing, trust, collaboration, and team effectiveness in virtual team settings. The findings suggest that knowledge sharing positively influences trust and collaboration among virtual team members. The findings also suggest that while trust positively influences virtual team collaboration, it does not have a significant direct effect on team effectiveness.

A flexible approach to estimate the equity premium

Yosef Bonaparte, Frank J Fabozzi
Applied Economics,Pages: 1-11.

In this article, we estimate the risk aversion for households accounting for their lifetime consumption risk. Households take into account the overall lifetime uninsured consumption risk when optimizing their resources, which based on micro data varies across households. Thus, representing households’ consumption by merging cross-sectional micro data into the single Euler equation (the common approach for estimating risk aversion based on consumption-based asset pricing theory) may be too rough an approximation, leading …
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The Impact of the Internet on Values in India: Shifts in Self-Enhancement and Self-Transcendence Amongst Indian Youth

Vicki R Lane, Jiban Khuntia, Madhavan Parthasarathy, Bidyut B Hazarika
Journal of Global Information Management (JGIM),Vol. 25, Issue 3, Pages: 98-120.

In this study, the authors examine how the internet is changing two critical personal value dimensions of India’s youth. Based on values theory, and using data that spans a decade from 2004-2014, they contend that time spent on the internet is an influential factor in changing self-enhancement and self-transcendence values. Given the tremendous increase in exposure to western products, ideals, and people-to-people interaction via internet connectivity (India has over 275 million internet users who communicate in the …
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Estimating the elasticity of intertemporal substitution accounting for stockholder-specific portfolios

Yosef Bonaparte, Frank J Fabozzi
Applied Economics Letters,Vol. 24, Issue 13, Pages: 923-927.

This article estimates the elasticity of intertemporal substitution using stockholder actual return experience. The approach is motivated by numerous data sources indicating that the median US stockholder has a portfolio composed of only three or four individual stocks, rather than a well-diversified portfolio as suggested by portfolio theory. Therefore, representing an individual stockholder portfolio by a proxy financial index (the common approach taken in the literature) may be too rough an approximation of investor …
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Does corporate governance matter in competitive industries? Evidence from China

Zhuangxiong Yu, Jie Li, Jian Yang
Pacific Basin Finance Journal,Vol. 43, Pages: 238-255.

Using the data of Chinese listed firms from 2003 to 2013, this study examines how product market competition affects the impact of corporate governance on firm value. In sharp contrast with the overwhelming empirical evidence based on the US and European developed markets that product market competition acts as a substitute for corporate governance and good governance matters only in non-competitive industries, we document that good governance of Chinese firms significantly increases firm value only in …
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An investigation of market concentration and financial stability in property-liability insurance industry

Jeungbo Shim
Journal of risk and insurance,Vol. 84, Issue 2, Pages: 567-597.

The article investigates whether the market concentration is associated with an insurer’s financial stability in the US property-liability insurance industry over the period 1992-2010. We employ two-stage least squares techniques with instrumental variables to address likely endogeneity problems. The results show that higher market concentration is associated with lower financial stability of insurance firms, consistent with the “concentration-fragility” view. Our results indicate that firm-specific characteristics including firm size, …
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Distressed Chinese firm prediction with discretized data

Jun Huang, Jun Huang, Haibo Wang, Haibo Wang, Gary Kochenberger, Gary Kochenberger
Management Decision,Vol. 55, Issue 5, Pages: 786-807.

Purpose The authors develop a framework to build an early warning mechanism in detecting financial deterioration of Chinese companies. Many studies in the financial distress and bankruptcy prediction literature rarely do they examine the impact of pre-processing financial indicators on the prediction performance. The purpose of this paper is to address this shortcoming. Design/methodology/approach The proposed framework is evaluated by using both original and discretized data, and a least absolute shrinkage and selection …
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A Selective Linearization Method For Multiblock Convex Optimization

Yu Du, Xiaodong Lin, Andrzej Ruszczyski
SIAM Journal on Optimization,Vol. 27, Issue 2, Pages: 1102-1117.

We consider the problem of minimizing a sum of several convex nonsmooth functions. We introduce a new algorithm called the selective linearization method, which iteratively linearizes all but one of the functions and employs simple proximal steps. The algorithm is a form of multiple operator splitting in which the order of processing partial functions is not fixed, but rather determined in the course of calculations. Global convergence is proved and estimates of the convergence rate are derived. Specifically, the number of iterations …
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When organizational politics matters: The effects of the perceived frequency and distance of experienced politics

John M Maslyn, Steven M Farmer, Kenneth L Bettenhausen
Human Relations,Pages: 0018726717704706.

Drawing from literature linking organizational politics with effects of challenge or hindrance stressors, this study investigated the effects of the frequency and psychological distance of positive and negative conceptualizations of perceived politics on the impact to the individual. It was hypothesized that the frequency of political behavior would exhibit an inverted-U-function relationship with favorable evaluations of political behavior and that this relationship would be moderated by distance. Two independent samples were used to test the …
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Political climate, optimism, and investment decisions

Yosef Bonaparte, Alok Kumar, Jeremy K Page
Journal of Financial Markets,In Press

We show that people’s optimism towards financial markets and the macroeconomy is dynamically influenced by their political affiliation and the current political climate. Individuals become more optimistic and perceive markets to be less risky and more undervalued when their preferred party is in power. Accordingly, investors increase allocations to risky assets and exhibit a stronger preference for high market beta, small-cap, and value stocks, and a weaker preference for local stocks. The differences in optimism …
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Approaching evaluation from a multilevel perspective: A comprehensive analysis of the indicators of training effectiveness

Traci Sitzmann, Justin M Weinhardt
Human Resource Management Review,In Press

We propose a multilevel framework that addresses the criteria that can be used to assess training effectiveness at the within-person, between-person, and macro levels of analysis. Specifically, we propose four evaluation taxatraining utilization, affect, performance, and financial impactas well as the specific evaluation metrics that can be captured to examine the facets of each taxon. Our multilevel framework also clarifies the appropriate level of analysis for assessing each criterion variable and articulates when it …
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Anchoring Relationships at Work: High-Quality Mentors and Other Supportive Work Relationships as Buffers to Ambient Racial Discrimination

Belle Rose Ragins, Kyle Ehrhardt, Karen S. Lyness, Dianne D. Murphy, and John F. Capman
Personnel Psychology, Vol. 70, Issue 1, Spring 2017, Pages 211–256

Applying a unifying theoretical framework of high-quality work relationships, we conducted a set of 3 complementary studies that examined whether high-quality mentoring relationships can buffer employees from the negative effects of ambient discrimination at work. Integrating relational mentoring with relational systems theory, we first examined whether the presence of a high-quality mentoring relationship buffers employees in a sample of 3,813 workers. In support of the “mentors-as-buffers” hypothesis, we found that employees who witnessed or were aware of racial discrimination at work had lower organizational commitment than those not exposed, but employees with high-quality mentoring relationships experienced less loss of commitment than those lacking mentors. We then examined the specific buffering behaviors used by mentors in high-quality relationships and whether these behaviors were effective for other work relationships and outcomes. Applying Kahn’s typology, we developed and validated a measure of high-quality relational holding behaviors in a sample of 262 workers. Using this measure in a third sample of 557 workers, we found that mentors buffer by providing holding behaviors, but we did not find this buffering effect when supervisors or coworkers provided holding behaviors. This potent mentor buffering effect held across a range of outcomes, including organizational commitment, physical symptoms of stress, insomnia, and stress-related absenteeism. These studies suggest that mentoring may be a singularly effective relationship that offers a safe harbor for employees faced with ambient discrimination at work.

The impact of crude oil inventory announcements on prices: Evidence from derivatives markets

Hong Miao, Sanjay Ramchander, Tianyang Wang, Jian Yang
Journal of Futures Markets,In Press

This study examines the impact of weekly crude oil storage announcements on oil futures and options prices. We document evidence of a strong announcement day effect on both markets, and find prices to move in anticipation of the inventory surprise. Futures returns significantly decrease with positive surprises and increase with negative surprises. There is no evidence of an asymmetric impact on futures prices. Near-the-money options exhibit the greatest price sensitivity, and the magnitude of the price response of both …
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Heterogeneous traders, liquidity, and volatility in crude oil futures market

Erik Haugom, Rina Ray
Journal of Commodity Markets,Vol. 5, Pages: 36-49.

We are the first to analyze the relation between liquidity, volatility, and return distributions for the crude oil futures market. We do this by using a quantile regression method while most of the research in the field of liquidity and volatility has employed conventional OLS regression. While the latter approach can be useful in many applications, it fails to provide any insight about the effects in the rest of the distributions-outside the mean-of interest. Our results show that a distinct volatility “smile” is formed when trading activity, …
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Rate of Convergence of the Bundle Method

Yu Du, Andrzej Ruszczyski
Journal of Optimization Theory and Applications,Vol. 173, Issue 3, Pages: 908-922.

The number of iterations needed by the bundle method for nonsmooth optimization to achieve a specified solution accuracy can be bounded by the product of the inverse of the accuracy and its logarithm, if the function is strongly convex. The result is true for the versions of the method with multiple cuts and with cut aggregation.
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Collaborative Stakeholder Engagement: An Integration between Theories of Organizational Legitimacy and Learning

Vinit Desai
Academy of Management Journal,Pages: 2016.0315.

Organizations often collaborate with stakeholders such as customers, communities, and other groups to pursue shared goals, and these partnerships are known to affect an organization’s legitimacy with those groups as well as its access to information from them. While these concerns could be examined within each of their own independent literatures, existing theories are ill-equipped to handle this process in tandem. Thus, studying these collaborations provides an opportunity to more broadly explore how organizations …
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Product returns, asymmetric information, and firm performance

Ruiliang Yan, Zixia Cao
International Journal of Production Economics,Vol. 185, Pages: 211-222.

There has been a scarcity of research that studies the value of product return information to supply chain firms. In this research, we assume that the online retailer has the product return information but the manufacturer does not. Our results show that a two-part price contract can motivate the online retailer to share its private information only under certain condition, but the revenue sharing contract plus profit split mechanism always is a valuable strategy to be utilized to seek sharing the online retailer’s private information and …
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University of Colorado Denver Business School