Copenhagen Business School

About: Copenhagen Business School is a education organization based out in Copenhagen, Hovedstaden, Denmark. It is known for research contribution in the topics: Corporate governance & Entrepreneurship. The organization has 2194 authors who have published 9649 publications receiving 341898 citations.

Host-country environment and subsidiary competence: Extending the diamond network model

Abstract: We extend the “centers of excellence” concept to address the diversity and multidimensionality of subsidiary competence. Using Rugman and Verbeke's diamond network model, we hypothesize the contingencies influencing the links between host-country environments and subsidiary competence configuration, and provide evidence from more than 2000 subsidiaries in seven European countries. Our results provide new insights into how multinational enterprises can overcome “unbalanced” national diamonds by acquiring complementary capabilities across borders.

Licensing-in fosters rapid invention! the effect of the grant-back clause and technological unfamiliarity

Abstract: Drawing on contractual economics and innovation management, licensing-in is hypothesized to accelerate licensees' invention process. Studying a matched dataset of licensees and non-licensees, licensees are shown to be faster at inventing, but the effect is negated if the license includes a grant-back clause, shifting incentives from licensee to licensor. Also, the effect is significantly reduced if the licensee is unfamiliar with the licensed technology. The effect of the grant-back clause is offset if the licensee is unfamiliar with the licensed technology, suggesting that the licensee retains the incentives to invent under these circumstances. Copyright © 2012 John Wiley & Sons, Ltd.

Capturing Option Anomalies with a Variance-Dependent Pricing Kernel

Abstract: We develop a GARCH option model with a variance premium by combining the Heston-Nandi (2000) dynamic with a new pricing kernel that nests Rubinstein (1976) and Brennan (1979). While the pricing kernel is monotonic in the stock return and in variance, its projection onto the stock return is nonmonotonic. A negative variance premium makes it U-shaped. We present new semi-parametric evidence to con firm this U-shaped relationship between the risk-neutral and physical probability densities. The new pricing kernel substantially improves our ability to reconcile the time series properties of stock returns with the cross-section of option prices. It provides a unified explanation for the implied volatility puzzle, the overreaction of long-term options to changes in short-term variance, and the fat tails of the risk-neutral return distribution relative to the physical distribution.

Top Management Team Internationalization and Firm Performance: The Mediating Role of Foreign Market Entry.

Abstract: This paper develops a multi-dimensional construct of top management team (TMT) internationalization reflecting TMT ability to deal with challenges of managing firm foreign operations in the process of ongoing globalization. Drawing upon upper echelons and firm internationalization theories, the relationships between TMT internationalization, foreign market entry and performance are empirically investigated in a sample of 165 Swiss listed companies. The results confirm the validity of the multi-dimensional construct and suggest that TMT internationalization leads to subsequent foreign market entries, which in turn are positively related to firm performance.