London Business School

About: London Business School is a education organization based out in London, England, United Kingdom. It is known for research contribution in the topics: Portfolio & Equity (finance). The organization has 1138 authors who have published 5118 publications receiving 437980 citations. The organization is also known as: LBS.

Robust Measures of Consumer Brand Beliefs

Abstract: Three measures of consumers’ beliefs about different attributes of competitive brands of packaged goods—free choice, scaling, and ranking—are found to place the brands in the same relative position...

Bank control, takeovers and corporate governance in Germany

Abstract: This paper examines the three cases of hostile takeovers in Germany in the post Second World War period It describes the important role played by banks in affecting the outcome of the bids: bank representatives were chairmen of the supervisory board in all three cases and banks voted a large number of proxies in important decisions affecting the bids The paper reports that low returns were earned by shareholders of two of the target firms and offers an explanation in terms of bank control and the regulatory regime operating in Germany

Identifying and Training Adaptive Cross-Cultural Management Skills: The Crucial Role of Cultural Metacognition

Abstract: For managers, intercultural effectiveness requires forging close working relationships with people from different cultural backgrounds (Black, Mendenhall, & Oddou, 1991). Recent research with executives has found that higher cultural metacognition is associated with affective closeness and creative collaboration in intercultural relationships (Chua, Morris, & Mor, & 2012). However, little is known about the social cognitive mechanisms that facilitate the performance of individuals who score high on cultural metacognition. We propose that one important question for cross-cultural research and training is identifying which metacognitive strategies enable successful intercultural collaborations. We suggest that one such strategy is “cultural perspective taking”—considering how another’s cultural background shapes their behavior in a given context. We hypothesized that cultural perspective taking facilitates intercultural coordination and cooperation, and that a manipulation that boosts cultural perspective taking would be especially beneficial for individuals who score low in dispositional cultural metacognition. We found support for the above hypotheses in five studies using both quasi-field and experimental approaches. We discuss the implications of these findings for literatures on expatriate managers, cross-cultural training, cultural intelligence, and intercultural negotiations.

Generalised style analysis of hedge funds

Abstract: This paper attempts to shed light on the ‘black box’ called hedge funds via the style analysis technique developed by Sharpe (1992). The conventional style analysis cannot be directly applied to hedge funds as it imposes two constraints: first, the style weights have to be non-negative, and secondly, they have to add up to 100 per cent. In addition, the conventional style analysis does not provide any information about the statistical significance of the style weights. In this paper, we conduct a generalised style analysis of various hedge fund strategies by relaxing the constraints of the conventional style analysis, and examine the significance of style weights, as in Lobosco and DiBartolomeo (1997). We find that the generalised style analysis approach is more robust for estimating the risk exposures of hedge funds that take short positions in various asset classes and typically hold a significant part of their portfolio in cash.

Starting low but ending high: a reversal of the anchoring effect in auctions.

Abstract: Counter to the "start high, end high" effect of anchors in individual judgments and dyadic negotiations, 6 studies using a diverse set of methodologies document how and why, in the social setting of auctions, lower starting prices result in higher final prices. Three processes contribute to this effect. First, lower starting prices reduce barriers to entry, which increase traffic and generate higher final prices. Second, lower starting prices entice bidders to invest time and energy (creating sunk costs) and, consequently, escalate their commitments. Third, the traffic generated by lower starting prices can lead bidders to infer value in the item, thereby explaining previous findings that traffic begets more traffic. The authors show that barriers to entry that limit traffic (e.g., a misspelled brand name) lead to anchoring's normal assimilative effect rather than its reversal. By broadening the understanding of anchors to extended social interactions and open markets, the authors identify when and why starting prices anchor.