IE University

About: IE University is a education organization based out in Segovia, Castilla y León, Spain. It is known for research contribution in the topics: Corporate governance & Context (language use). The organization has 527 authors who have published 1709 publications receiving 64682 citations.

Managerial leverage is limited by the extent of the market: hierarchies, specialization and the utilization of lawyers’ human capital

Abstract: This paper examines hierarchies' role in the organization of human-capital-intensive production. We develop an equilibrium model of hierarchical organization, then provide empirical evidence using confidential data on thousands of law offices from the 1992 Census of Services. We show how the equilibrium assignment of individuals to hierarchical positions varies with the degree to which their human capital is field-specialized; then show how this equilibrium changes with the extent of the market. When the extent of the market increases, individuals' knowledge becomes narrower, but deeper. Managerial leverage, the number of workers per manager, optimally increases to exploit this depth. We find empirical evidence consistent with a central proposition of the model: the share of lawyers that work in hierarchies and the ratio of associates to partners increases as market size increases and lawyers field-specialize. Other results provide evidence against alternative interpretations that emphasize unobserved differences in the distribution of demand or 'firm size effects', and lend additional support to the view that a role hierarchies play in legal services is to help exploit increasing returns associated with the utilization of human capital.

How Does Wall Street React To Global Sports Sponsorship Announcements?: An Analysis of the Effect On Sponsoring Companies' Stock Market Prices

Abstract: This study aims to analyze the potential ability of sponsorship to create shareholder wealth on the basis of how the announcement of global sports sponsorships affects sponsoring companies9 stock market prices. This study also seeks to illuminate previous research controversies by examining several international sports tournaments in various countries over a 10-year period. The results show that, first, investors9 appreciation of sponsorships was positive, although it decreased over the year of the announcement; second, the combination of functional and national congruence produced the highest value; and, third, the stock market did not equally value all sponsorships.

Team Diversity and Categorization Salience Capturing Diversity-Blind, Intergroup-Biased, and Multicultural Perceptions

Abstract: It is increasingly recognized that team diversity with respect to various social categories (e.g., gender, race) does not automatically result in the cognitive activation of these categories (i.e., categorization salience), and that factors influencing this relationship are important for the effects of diversity. Thus, it is a methodological problem that no measurement technique is available to measure categorization salience in a way that efficiently applies to multiple dimensions of diversity in multiple combinations. Based on insights from artificial intelligence research, we propose a technique to capture the salience of different social categorizations in teams that does not prime the salience of these categories. We illustrate the importance of such measurement by showing how it may be used to distinguish among diversity-blind responses (low categorization salience), multicultural responses (positive responses to categorization salience), and intergroup-biased responses (negative responses to categorization salience) in a study of gender and race diversity and the gender by race faultline in 38 manufacturing teams comprising 239 members.

Small and medium size enterprises and the knowledge economy: Assessing the relevance of intangible asset valuation, reporting and management initiatives

Abstract: Purpose – The growth of the so‐called “knowledge economy”, whereby the primary sources of firm value are claimed to be an increasing reliance upon the exploitation and management of intangible assets that are not reported in company balance sheets, has led to a questioning of the continued relevance of conventional financial reporting and internal management information and control systems. The purpose of this paper is to evaluate the criticisms and proposed alternatives to conventional financial reporting and management control practices. As public policy makers appear to be increasingly convinced that there is an economically damaging “gap” in terms of small and medium size enterprise (SME) stakeholder understanding of intangible asset management, the paper also evaluates the arguments and evidence concerning the applicability and relevance of the problems and proposed alternatives to SMEs.Design/methodology/approach – The paper reviews the criticisms, empirical evidence and proposals to improve financi...

A conceptual model of transgenerational entrepreneurship in family-influenced firms

Abstract: Recent family business literature has witnessed an upsurge of interest in developing a deeper understanding of the entrepreneurial function of the family in social and economic wealth creation (Habbershon & Pistrui, 2002). As a result of this increased interest, recent studies have acknowledged that families have a dominant impact on business world wide (Stafford, 2001; Morck & Yeung, 2003), that they control between 60 and 90 percent of businesses in nearly every nation (INFERA, 2003), and they contribute more than 70% of private jobs (Shanker & Astrachan, 1996), and most likely function as the largest single source of start-up capital (Steier, 2001). Despite these advances, there is still an absence of research and validation of the family's entrepreneurial contribution to sustainable wealth creation. The overlap of family business studies and entrepreneurship has been traditionally described through a " common denominator " approach aimed at finding common subjects such as small business management, entrepreneurial couples, lifestyle start-ups, founders and founder's culture, transition and succession, and some corporate entrepreneurship themes (Dyer & Handler, 1994; Hoy & Vesper, 1994). We believe, however, that it is necessary to establish a true nexus between entrepreneurship theory and family business studies in order to fully understand the role and influence of the family in the entrepreneurial process and, therefore, the part they play in the entrepreneurial infrastructure of countries. To this end, the role of the family and of family-related influences on wealth creation have to be placed at center stage. One of the drivers in this convergence of thinking around the role of the family have been recent works adopting the concept of " familiness " These studies have demonstrated that the way to avoid the dichotomizing and, thereby, minimizing approach to investigating the impact of family is to create research models which assess family influence as a systemic variable within the resources and capabilities of the family group. The " familiness " approach has also been acknowledged as an appropriate framework for exploring how families find advantage, and for exploring the relationship of that advantage This conceptual paper is part of a wider project (" The STEP Research Project ") aimed at investigating antecedents and outcomes of Successful Transgenerational Entrepreneurship Practices. In order to pursue research around the constructs of family and entrepreneurship, we introduce the conceptual framework of " transgenerational entrepreneurship ". Transgenerational Entrepreneurship refers to a family's mindset and capabilities to continue …