Showing papers by "Copenhagen Business School published in 2008"
TL;DR: The main results based on exponential discounting are robust to alternative specifications such as hyperbolic discounting and have direct implications for attempts to elicit time preferences, as well as debates over the appropriate domain of the utility function when characterizing risk aversion and time consistency.
Abstract: We design experiments to jointly elicit risk and time preferences for the adult Danish population. Since subjects are generally risk averse, we find that joint elicitation provides estimates of discount rates that are significantly lower than those found in previous studies and more in line with what would be considered as a priori reasonable rates. The statistical specification relies on a theoretical framework that involves a latent trade-off between long-run optimization and short-run temptation. Estimation of this specification is undertaken using structural, maximum likelihood methods. Our main results based on exponential discounting are robust to alternative specifications such as hyperbolic discounting. These results have direct implications for attempts to elicit time preferences, as well as debates over the appropriate domain of the utility function when characterizing risk aversion and time consistency.
1,143 citations
TL;DR: In this article, the authors compare the estimates based on trade and quote data for the same stock and find a remarkable level of agreement, which is due to non-trivial liquidity effects.
Abstract: Realised kernels use high frequency data to estimate daily volatility of individual stock prices. They can be applied to either trade or quote data. Here we provide the details of how we suggest implementing them in practice. We compare the estimates based on trade and quote data for the same stock and find a remarkable level of agreement. We identify some features of the high frequency data which are challenging for realised kernels. They are when there are local trends in the data, over periods of around 10 minutes, where the prices and quotes are driven up or down. These can be associated with high volumes. One explanation for this is that they are due to non-trivial liquidity effects.
543 citations
TL;DR: In this article, the authors argue that the kind of macro explanation that is presently utilized in the capabilities view in strategic management is incomplete, and they provide a formal model that shows precisely why macro-explanation is incomplete and exemplifies how explicit micro-foundations may be built for notions of routines and capabilities and how these impact firm performance.
Abstract: Micro-foundations have become an important emerging theme in strategic management This paper addresses micro-foundations in two related ways First, we argue that the kind of macro (or ‘collectivist') explanation that is presently utilized in the capabilities view in strategic management—which implies a neglect of micro-foundations—is incomplete There are no mechanisms that work solely on the macro-level, directly connecting routines and capabilities to firm-level outcomes While routines and capabilities are useful shorthand for complicated patterns of individual action and interaction, ultimately they are best understood at the micro-level Second, we provide a formal model that shows precisely why macro-explanation is incomplete and which exemplifies how explicit micro-foundations may be built for notions of routines and capabilities and how these impact firm performance
441 citations
TL;DR: In this article, the authors explored the apparent "Catch 22" of communicating Corporate Social Responsibility (CSR) and proposed two models that may help to explain how companies can best communicate about their CSR initiatives.
Abstract: This research explored the apparent ‘Catch 22’ of communicating Corporate Social Responsibility (CSR). Although companies are regularly encouraged to engage in CSR, they are simultaneously discouraged to communicate about this engagement. We contribute with two models that may help to explain how companies can best communicate about their CSR initiatives. Based on a reputation survey and two case studies of Danish corporate CSR frontrunners, first we develop an ‘inside‐out approach’ to suggest how managers can manage their CSR activities to achieve favourable CSR reputation in a ‘Catch 22’ context. Employees appear as a key component in building trustworthiness as CSR communication is shown to evolve when taking an ‘inside‐out approach’. Second, we develop a CSR communication model with two CSR communication processes targeting different stakeholder groups: ‘the expert CSR communication process’ and ‘the endorsed CSR communication process’. Integrating these models and processes may help companies strateg...
411 citations
TL;DR: In this article, the authors tried to explain cross-country differences in the level of entrepreneurship by differences in economic policy and institutional design, and found that the size of government is negatively correlated with entrepreneurial activity.
Abstract: While much attention has been devoted to analyzing how the institutional framework and entrepreneurship impact growth, how economic policy and institutional design affect entrepreneurship appears to be much less analyzed. We try to explain cross-country differences in the level of entrepreneurship by differences in economic policy and institutional design. Specifically, we use the Economic Freedom Index from the Fraser Institute to ask which elements of economic policy making and the institutional framework are conducive to the supply of entrepreneurship, measured by data on entrepreneurship from the Global Entrepreneurship Monitor. We find that the size of government is negatively correlated and sound money is positively correlated with entrepreneurial activity. Other measures of economic freedom are not significantly correlated with entrepreneurship.
330 citations
TL;DR: The authors argue that the kind of housing people occupy and the property rights surrounding housing can constitute political subjectivities and objective preferences not only about the level of public spending, but also the level and nature of inflation and taxation.
Abstract: Comparative and international political economy (CPE and IPE) are justifiably obsessed with finance as a source of power and as a key causal force for domestic and international economic outcomes. Yet both CPE and IPE ignore the single largest asset in people's everyday lives and one of the biggest financial assets in most economies: residential property and its associated mortgage debt. This special issue argues that residential housing and housing finance systems have important causal consequences for political behavior, social stability, the structure of welfare states, and macro-economic outcomes. The articles examine specific instances across a range of countries. This introduction has broader aims. First, it shows that housing finance systems are not politically neutral. We argue that the kind of housing people occupy and the property rights surrounding housing can constitute political subjectivities and objective preferences not only about the level of public spending, but also the level and nature of inflation and taxation. Second, like the varieties of capitalism literature, we show that housing finance systems also have important complementarities with the larger economy. But we diverge from the varieties literature, suggesting that ‘varieties of residential capitalism’ are not explained by domestic institutional complementarities alone. Rather, what we refer to as financially repressed and financially liberal systems are globally interdependent. While welfare and taxation systems show high degrees of path dependence, transnational trends in the deregulation of housing finance have altered incentives and preferences for financial institutions, home owners, and would-be home owners. Finally, the introduction offers some speculation about how pocketbooks will drive politics as the global housing busts tightens mortgage belts around the waists of average Organization for Economic Cooperation and Development home owners.
315 citations
TL;DR: In this article, the authors argue that the consistent application of subjectivism helps reconcile contemporary entrepreneurship theory with the strategic management literature, particularly the resource-based view of the firm, and describe entrepreneurship as a creative team act in which heterogeneous managerial mental models interact to create and arrange resources to produce a collective output that is creatively superior to individual output.
Abstract: This article maintains that the consistent application of subjectivism helps reconcile contemporary entrepreneurship theory with the strategic management literature, particularly the resource-based view of the firm. The article synthesizes theoretical insights from Austrian economics, Penrose's (1959) resources approach, and modern resource-based theory, focusing on the essential subjectivity of the entrepreneurial process. This new synthesis describes entrepreneurship as a creative team act in which heterogeneous managerial mental models interact to create and arrange resources to produce a collective output that is creatively superior to individual output. Copyright © 2008 Strategic Management Society.
299 citations
TL;DR: In this article, a theoretical model is developed based on the internationalization process view and the more recent organizational learning perspective, including concepts such as overconfidence and absorptive capacity, to explore whether knowledge gaps tend to increase or decrease with time when operating in the foreign market, and discuss which learning components narrow or widen the perceived knowledge gap.
Abstract: Knowledge and learning are ascribed pivotal roles in firms' internationalization processes: perceived market uncertainties, namely knowledge gaps related to business environments in foreign markets, may curb firms' inclinations to commit resources to these markets. This study explores whether knowledge gaps tend to increase or decrease with time when operating in the foreign market, and it discusses which learning components narrow – or widen – the perceived knowledge gap. A theoretical model is developed based on the internationalization process view and the more recent organizational learning perspective, including such concepts as overconfidence and absorptive capacity. The theoretical model is tested on a set of primary data covering Danish and Swedish firms and their foreign market operations. The results suggest a more subtle relationship between experience and perceived knowledge gaps than the “mechanical” relationship portrayed by the internationalization process view – a relationship in which absorptive capacity and, in particular, overconfidence play important roles.
266 citations
TL;DR: In this article, the authors present a new model for the valuation of European options, in which the volatility of returns consists of two components, one of which is a long-run component and it can be modeled as fully persistent and the other component is short-run and has a zero mean.
Abstract: This paper presents a new model for the valuation of European options, in which the volatility of returns consists of two components. One of these components is a long-run component, and it can be modeled as fully persistent. The other component is short-run and has a zero mean. Our model can be viewed as an affine version of Engle and Lee (1999), allowing for easy valuation of European options. The model substantially outperforms a benchmark single-component volatility model that is well-established in the literature, and it fits options better than a model that combines conditional heteroskedasticity and Poisson-normal jumps. The component model's superior performance is partly due to its improved ability to model the smirk and the path of spot volatility, but its most distinctive feature is its ability to model the volatility term structure. This feature enables the component model to jointly model long-maturity and short-maturity options.
265 citations
TL;DR: In this article, the authors investigate 495 transactions with a focus on one form of long-term activities, namely investments in innovation as measured by patenting activity, and find no evidence that LBOs decrease these activities.
Abstract: A long-standing controversy is whether LBOs relieve managers from short-term pressures of dispersed shareholders, or whether LBO funds themselves are driven by short-term profit motives and sacrifice long-term growth to boost short-term performance. We investigate 495 transactions with a focus on one form of long-term activities, namely investments in innovation as measured by patenting activity. We find no evidence that LBOs decrease these activities. Relying on standard measures of patent quality, we find that patents applied for by firms in private equity transactions are more cited (a proxy for economic importance), show no significant shifts in the fundamental nature of the research, and are more concentrated in the most important and prominent areas of companies' innovative portfolios.
258 citations
01 Aug 2008
TL;DR: In this paper, the authors present a model of stakeholder equities as a tool for brand managers to assess the value of multiple stakeholders in relation to the brand, and develop a stakeholder brand value model to strengthen understanding of the sources of brand value.
Abstract: This article reflects the current interest in brand research towards studying non-consumer relations and their role in brand value creation. It presents a model of stakeholder equities as a tool for brand managers to assess the value of multiple stakeholders in relation to the brand. A stakeholder brand value model is then developed to strengthen understanding of the sources of brand value. It is argued that brand value is co-created through interaction with multiple strategic stakeholders. Considerations for brand mangers and suggestions for future research are presented.
TL;DR: In this article, a hierarchical value-attitude-behaviour approach was used to test consumer personal values, attitude, social norm, perceived behavioural control and willingness to buy groceries online.
Abstract: Taking a hierarchical value-attitude-behaviour approach, this study empirically tests relations of consumer personal values, attitude, social norm, perceived behavioural control (PBC) and willingness to buy groceries online. The study distinguishes three groups of consumers: consumers who have not yet bought anything on the Internet; consumers who have bought something on the Internet – but not groceries; and consumers who have bought something on the Internet – including groceries. Data were collected from an online survey of Swedish consumers (n = 1058) using self-administered questionnaires. The findings suggest that consumers may link personal values to attitude towards online grocery buying – but also that this relation may be moderated by whether the consumer previously has carried out an online purchase or an online grocery purchase.
TL;DR: This paper used field experiments to examine the temporal stability of risk preferences and found some variation in risk attitudes over time, but do not detect a general tendency for risk attitudes to increase or decrease over a 17-month span.
Abstract: We use field experiments to examine the temporal stability of risk preferences. Over a 17-month period, we elicited risk preferences from subjects chosen to be representative of the adult Danish population. During this period we revisited many of these subjects and repeated a risk aversion elicitation task. We find some variation in risk attitudes over time, but we do not detect a general tendency for risk attitudes to increase or decrease over a 17-month span. The results also suggest that risk preferences are state contingent with respect to personal finances.
TL;DR: The authors explored the transition from the linguistic imperialism of the colonial and post-colonial ages to the increasingly dominant role of English as a neo-imperial language in the U.S. empire.
Abstract: The article explores the transition from the linguistic imperialism of the colonial and postcolonial ages to the increasingly dominant role of English as a neoimperial language. It analyzes ‘global’ English as a key dimension of the U.S. empire. U.S. expansionism is a fundamental principle of the foreign policy of the United States that can be traced back over two centuries. Linguistic imperialism and neoimperialism are exemplified at the micro and macro levels, and some key defining traits explored, as are cultural and institutional links between the United Kingdom and the United States, and the role of foundations in promoting ‘world’ English. Whereas many parts of the world have experienced a longstanding engagement with English, the use of English in continental Europe has expanded markedly in recent years, as a result of many strands of globalization and European integration. Some ongoing tensions in language policy in Europe, and symptoms of complicity in accepting linguistic hegemony, are explored....
TL;DR: In this article, a causal analysis of board size effects on firm performance is provided using a novel instrument given by the number of children of the chief executive officer (CEO) of the firms.
Abstract: Empirical studies of large publicly traded firms have shown a robust negative relationship between board size and firm performance. The evidence on small and medium-sized firms is less clear; we show that existing work has been incomplete in analyzing the causal relationship due to weak identification strategies. Using a rich data set of almost 7000 closely held corporations we provide a causal analysis of board size effects on firm performance: We use a novel instrument given by the number of children of the chief executive officer (CEO) of the firms. First, we find a strong positive correlation between family size and board size and show this correlation to be driven by firms where the CEO’s relatives serve on the board. Second, we find empirical evidence of a small adverse board size effect driven by the minority of small and medium-sized firms that are characterized by having comparatively large boards of six or more members.
TL;DR: This paper explored how we think of English and 'English Studies' in present-day Europe and questioned the apparent neutrality of the term lingua franca by suggesting a more differentiated set of terms.
Abstract: The paper explores how we think of English and 'English Studies' in present-day Europe. It questions the apparent neutrality of the term lingua franca by suggesting a more differentiated set of terms. It relates the current consolidation and expansion of English to processes of global Americanisation and Europeanisation. The European Union (EU) member states are increasingly integrating their economies and cultures in a US-dominated world. The history and many divergent uses of the term lingua franca are explored, and related to discourses and policies that tend to reinforce English linguistic hegemony uncritically. The paper explores the policies of the EU for maintaining multilingualism, and contemporary constraints and pressures in European academia. It analyses the promotion of 'global' English in terms of the project, the product, and the processes, and considers criteria for assessing whether its advance is as a lingua franca or rather as a lingua frankensteinia.
TL;DR: In this paper, the authors report results from a study designed to assess the extent to which firms across industries and several countries lay the groundwork for and use customer value insight, supply chain learning, and innovation processes.
Abstract: This paper reports results from a study designed to assess the extent to which firms across industries and several countries lay the groundwork for and use customer value insight, supply chain learning, and innovation processes. The cross-sectional study serves as an exploration of the theoretical relationships among these activities and their impact on perceptions of organizational performance. Through an international survey study drawing on samples from the U.S., Sweden and Denmark, the authors find support for the notions that supply chain learning and innovation processes are driven by processes aimed at studying changes in customer value and contribute to perceptions of superior organizational performance. These findings have significant implications for logistics and supply chain management.
TL;DR: This paper studied the link between a matched worker-employee longitudinal dataset and export performance and wages of its workers and found that workers with high skill intensities pay higher wages than those with low skills.
TL;DR: The authors decompose swap spreads into three components: a convenience yield from holding Treasuries, a credit risk element from the underlying LIBOR rate, and a factor specific to the swap market.
TL;DR: In this article, the authors take stock of the mounting outward investment flows with special focus on China, India, Brazil, Russia, and South Africa ('BRICS'), and suggest that the current increase in outward investment from emerging and developing economies may constitute a third "wave", distinct from the two previous waves depicted in the literature.
Abstract: Outward foreign direct investment from emerging and developing economies has undergone important quantitative and qualitative changes over the last decade. This paper takes stock of the mounting outward investment flows with special focus on China, India, Brazil, Russia, and South Africa ('BRICS'). Following a brief discussion of FDI and emerging economies in general it is suggested that the current increase in outward investment from emerging and developing economies may constitute a third 'wave', distinct from the two previous waves depicted in the literature. The contours of such a wave are outlined, followed by an empirical analysis of outward investment from the BRICS countries.
Book•
18 Jan 2008TL;DR: The Emergence of Corporate Communications Rehabilitating the Corporate "Soul" The Scope of Integrated Communication Apprehending an Expanding Body Corporate Branding and Identity The Body Is Marked Corporate Reputation and Stakeholder Communication The Body in the Eyes of the "Other" as mentioned in this paper.
Abstract: PART ONE: THE NEW CORPORAL PROJECT The Emergence of Corporate Communications Rehabilitating the Corporate "Soul" The Scope of Integrated Communication Apprehending an Expanding Body Corporate Branding and Identity The Body Is Marked Corporate Reputation and Stakeholder Communication The Body in the Eyes of the "Other" PART TWO: BEHIND THE CORPORAL PROJECT Justifying Corporate Communications Diagnosing the Fragile Body Corporate Communication as Control The Body is Disciplined Corporate Communication and Flexibility Towards an Agile Body Corporate Communication as Polyphony A Body with Multiple Voices
TL;DR: Leander et al. as mentioned in this paper discuss the legal and ethical issues of private political science and the consequences of privatizing security in the private military and security companies, and the role of security in outsourcing military training.
Abstract: the market for force the consequences of privatizing security the market for force cambridge university press the market for force researchgate the privatization of security and change in the control of the market for force florida state university the market for force the consequences of privatizing security comprehensive bibliography on private military and short bibliography on private military and security companies prikaz knjige: deborah d. avant the market for force (the privatization of military services formatiert swp u. s. department of justice fbi academy library quantico the market for force gbv unbecoming conduct: legal and ethical issues of private political science 219: theories of security in world curriculum vitae deborah d. avant march 2013 personal the department of defense’s use of private security cyber proxies and the crisis in ukraine ccdcoe private security contractors in iraq: background, legal what does private security in iraq mean for democracy at home? the cost of our silence consequences of christians taking outsourcing security project muse business goes to war: private military/ security companies teaching notes heroes or mercenaries? security professionals for hire: exploring the many faces curriculum vitae anna leander sites@brunel outsourcing military training: the role of security the department of defense’s use of private security private security companies and sof university of denver security sector reform united states institute of peace directorate-general for external policies of the union global trends in war, conflict, and political violence vietnam 1963-1973: ten years of operational contract support the cost of our silence consequences of christians taking abedian, i. 2003. skills mismatch at root of joblessness florida state university libraries flvc the department of defense’s use of private security
TL;DR: In this article, the authors determine if owners of small manufacturing companies manage supply risk in similar ways and identify the practices constituting this potential joint approach, which can be characterized as defensive.
Abstract: Purpose – The purpose of the paper is to determine if owners of small manufacturing companies manage supply risk in similar ways and identify the practices constituting this potential joint approachDesign/methodology/approach – An interpretive case based methodology was applied in this research Interview data on the supply risk management practices of 11 SCOs (small company owners) were analysedFindings – The findings confirm that the 11 studied SCOs apply largely the same supply risk management practices, which can be characterised as defensive The approach covers risk elimination practices such as knowledge protection and local sourcing as the major practices, combined with relational practices such as fairness, loyalty, and seeking out responsive, dependable, and like‐minded suppliersResearch limitations/implications – The study focuses exclusively on small manufacturing companies Studies of other types of companies, such as trade or hi‐tech companies might reveal other practicesPractical implic
TL;DR: It is argued that the justifications for conducting case studies lie in their ability to reach the causal depth required for revealing the real domain of logistics activities and performance.
Abstract: Purpose – The purpose of this paper is to develop the paradigmatic justification for the use of case studies in logistics research. The argument is based on a critical realist (CR) ontology and epistemology. The current logistics paradigm's flat ontology – based on regularity – is replaced by an ontology emphasising structures and mechanisms underlying actual events in the form of logistics practice and performance.Design/methodology/approach – The approach takes the form of desk research, conceptual work and theorizing.Findings – Based on this CR view of the logistics domain it is argued that the justifications for conducting case studies lie in their ability: to reach the causal depth required for revealing the real domain of logistics activities and performance: to reveal the working of mechanisms in loosely coupled structures showing open systems characteristics through a constant alternation between abstract and concrete reasoning and; to include the causal powers and effects of agents' ascribed mean...
TL;DR: In this article, the authors address the intersection between network theory and networked innovation by developing a theoretical framework on how to leverage learning alliances across extra-and intra-corporate levels to support both exploration and exploitation of innovation to secure its creation and its implementation.
Abstract: This paper addresses an important gap in the literature intersection between network theory and networked innovation by developing a theoretical framework on how to leverage learning alliances across extra- and intra-corporate levels to support both exploration and exploitation of innovation to secure its creation and its implementation A detailed case of the Volvo C70 development is analysed with focus on how the full innovation from exploration to exploitation of innovation seem to rely on fundamentally different types and structures of networks Our detailed description and analysis of how a 'transformation network' was established and operated across different organizational levels to secure not only transfer, but also transformation and integration of knowledge into commercialized innovation makes an important contribution to extant theory on inter-organizational knowledge transfer and networking (Less)
TL;DR: In this paper, a conceptual model that allows a discussion regarding tourist experiences is presented, where four definitions of "experience design" are discussed, all situated on a continuum from a static starting point to a dynamic endpoint.
Abstract: This article outlines a conceptual model that allows a discussion regarding tourist experiences. Through the notion and deconstruction of the concept “experience design” it is argued that in order to be able to analyze tourism and develop new innovative strategic approaches to tourism management, dynamic notions of space, time and performance have to be especially attended to. This is done through a discussion of “experience” and “design” as both nouns and verbs. This makes it possible to work with four definitions of “experience design”, all situated on a continuum from a static starting point to a dynamic endpoint. It is argued that most research findings are placed in the more static half of this continuum, even if there are tendencies toward more dynamic approaches. These efforts are however usually based on a spatial ontology that is situated in the static half of the continuum. This paper aims to enhance these tendencies by focusing on the more dynamic half of the continuum. Notions of space‐time as...
TL;DR: This article used a large panel data set containing detailed information on educational attainments as well as financial and socioeconomic variables for individual investors to show that economists are more likely to hold stocks than otherwise identical investors.
Abstract: Using a large panel data set containing detailed information on educational attainments as well as financial and socioeconomic variables for individual investors, we show that economists are more likely to hold stocks than otherwise identical investors. First, we consider the change in stockholdings associated with (i) completing an economics education and (ii) an economist moving into the household. Second, we model stock market participation using a probit model with unobserved individual heterogeneity. Third, instrumental variables estimation allows us to identify the causal effect of an economics education on stock market participation. Throughout, we focus explicitly on the effect of a change in educational status on the likelihood of holding stocks. Copyright 2008, Oxford University Press.
TL;DR: In this article, the authors explored why and how HRM matters for knowledge transfer within multinational corporations and found that complementarity among HRM practices exists but does not always have a positive effect on knowledge transfer.
Abstract: This paper explores why and how HRM matters for knowledge transfer within multinational corporations. It is built upon the premise that there are certain HRM practices influencing extrinsic and intrinsic motivation of knowledge receivers. It is found that complementarity among HRM practices exists but does not always have a positive effect on knowledge transfer. Three hypotheses derived from these arguments are tested on data from 92 subsidiaries of Danish multinational corporations located in 11 countries.
TL;DR: In this article, the authors used insights from recent fieldwork in the Pakistani sporting goods industry and introduced five recommendations that could lead to a more fruitful engagement with future research, policy, and practice in this area.
Abstract: Much attention has been devoted to corporate social responsibility (CSR) in recent years. Codes of conduct — or the ethical principles that companies use to guide their practices — have been at the heart of the debate about how global companies should manage their supply chains in a socially and environmentally responsible manner. What characterizes the debate today? Exaggerated claims are often made about the benefits that codes supposedly bring to workers and the environment in the developing world. The risk is that codes of conduct may do more harm than good, because much of the academic and policy-oriented rhetoric on the topic is largely divorced from the realities faced by many developing country suppliers, workers and communities. Using insights from recent fieldwork in the Pakistani sporting goods industry, this contribution attempts to bust five myths that continue to characterize the codes of conduct debate and introduce five recommendations that could lead to a more fruitful engagement with future research, policy, and practice in this area.