Stockholm School of Economics

About: Stockholm School of Economics is a education organization based out in Stockholm, Sweden. It is known for research contribution in the topics: Population & Entrepreneurship. The organization has 1186 authors who have published 4891 publications receiving 285543 citations. The organization is also known as: Stockholm Business School & Handelshögskolan i Stockholm.

Pension Reform, Ownership Structure, and Corporate Governance: Evidence from a Natural Experiment

Abstract: Sweden offers a unique natural experiment to analyze the effects of institutionalized saving on the ownership structure, corporate governance, and firm performance. The Swedish pension reform increased the stock market participation of pension funds, causing a significant reshuffling in the ownership of pension funds. We show that the effects of institutional investment on firm performance depend on the industry structure of pension funds. Firm valuation improves if public pension funds and large independent private pension funds increase their shareholdings. Additionally, controlling shareholders appear reluctant to relinquish control and the control premium increases if public pension funds acquire shares. {JEL G3, G23) A large literature in corporate finance analyzes the effects of ownership on firm performance. Thus far, this literature has not been successful in establishing whether institutional ownership enhances firm value. Partly, this is because ownership and performance are jointly determined and an increase in institutional ownership may be positively correlated with performance merely because investors select firms that they expect to perform better. It is thus impossible to draw conclusions about causal relations simply by saturating firm performance regressions with a large number of firm characteristics in addition

Top management control and knowledge creation in new product development

Abstract: Purpose – The purpose of this paper is to examine the role of top management control in stimulating innovation through their effect on the creation of knowledge in new product development (NPD) projects. Top management has a crucial role in stimulating innovation in companies, in particular as top managers affect knowledge creation through their interaction with project teams before and during an NPD project, which can of course affect innovation.Design/methodology/approach – Through comparative case‐based research in two companies in high‐velocity industries, chosen through theoretical sampling, the authors have studied six NPD projects.Findings – The control top management exercise over an NPD project influences the creation of knowledge in different ways, both hampering and facilitating knowledge creation. In particular, this control focuses on explicit knowledge, and not tacit knowledge, which may reduce the overall capacity for knowledge creation and ultimately innovation.Research limitations/implica...

Influencer marketing: The impact of disclosing sponsorship compensation justification on sponsored content effectiveness

Abstract: Purpose The purpose of this paper is to investigate the effects of a particular form of sponsorship disclaimer in sponsored content by social media influencers (SMIs), namely a sponsorship compensation justification disclosure. A sponsorship compensation justification disclosure explains why influencers and brands engage in sponsorship collaborations by providing a normative reason that justifies the existence and dissemination of sponsored content. Design/methodology/approach An experimental design was used to compare the effects of a sponsorship compensation justification disclosure made by either an influencer or the sponsoring brand, to a simple sponsorship disclosure and a no disclosure control post, on consumers’ responses to a product-review video by a YouTube influencer. Findings The paper offers empirical evidence that sponsorship compensation justification generates more positive consumer attitudes toward influencers receiving sponsorship compensation, and increases source and message credibility, compared to a simple sponsorship disclosure. Research limitations/implications The hypotheses were tested on one YouTube video, comprising of a single product category, one SMI and one social media platform. Further studies might replicate the experiment on different product categories and on different social media platforms. Practical implications This empirical study can offer brand communication managers and influencers important information on how to communicate and design sponsorship disclosures to reach-desired responses from consumers. Originality/value The study is the first study to empirically demonstrate the effects of this particular type of sponsorship disclosure.

Talent in Distressed Firms: Investigating the Labor Costs of Financial Distress

Abstract: The importance of skilled labor and the inalienability of human capital expose firms to the risk of losing talent in critical times Using Swedish micro-data, we document that firms lose workers with the highest cognitive and noncognitive skills as they approach bankruptcy In a quasi-experiment, we confirm that financial distress is driving these results: following a negative export shock caused by exogenous currency movements, talent abandons the firm, but only if the exporter is highly leveraged Consistent with talent dependence being associated with higher labor costs of financial distress, firms that rely more on talent have more conservative capital structures