firm behavior

Getting the Deal Done
LI, J. T. | LI, Peixin | WANG, Baolian

Recently, the amount of outward foreign direct investment from emerging economies has been growing at a rapid pace, with numerous state-owned enterprises (SOEs) being part of the process. State ownership affects not only the resou ...

Benevolent Leadership Promotes Employee Creativity
LIN, Weipeng | MA, Jingjing | ZHANG, Qi

The success of an organization is largely dependent on the effectiveness of the leadership process, rendering the study of leadership essential. Virtuous leader behavior in form of benevolent leadership, referring to leaders&rsquo ...

To Quit or Not to Quit?
WONG, Ellick K.F. | CHENG, Cecilia

Deciding to leave a job and actually leaving it are not the same thing. Whether the intention to quit translates into real turnover behavior—known as the turnover intention–behavior link—is strongly affected by c ...

Out of Stock?
FENG, Youyi | XU, Jianjun | ZHENG, Shaohui

Downward substitution is common in many industries and occurs in supply chain management when a firm used a higher value item to satisfy the demand of a lower value item that is out of stock. This type of substitution is driven by ...

Ask the Audience

Traditionally, firms had to rely mainly on their employees to solve any problems. However, with the increased popularity of crowd-based ideation contests, in which “seekers” engage “solvers” to come up with ...

The Value of Analysts' Capital Expenditure Forecasts

Financial analysts are important information intermediaries in capital markets. Traditional research outputs of analysts, such as buy/sell recommendations and EPS forecasts, have been the mainstream focus of market participants. I ...

Firms’ Information Environment: Implications for Investors’ and Managers’ Decisions
HANN, Rebecca N. | KIM, Heedong | ZHENG, Yue

An earnings announcement – a public statement of a company’s profitability, usually issued on a quarterly basis – provides useful information to assess peer firms’ expected cash flows, as well as the uncert ...

Anticollusion Enforcement Affects Firms’ Financing
DASGUPTA, Sudipto | ZALDOKAS , Alminas

Price-fixing cartels are pervasive. However, antitrust enforcement around the world has been recently picking up speed. Higher fines and new tools such as leniency programs for cartel whistleblowers have led to unprecedented antit ...

The Personal Touch: Interpersonal Relationships in Business Lending
LI, Xinlei | KHAN, Urooj | WILLIAMS, Christopher | WITTENBERG-MOERMAN, Regina

When a business borrows money, its information asymmetry and the associated agency problems and its perceived ability to repay the debt are crucial considerations for lenders. However, these are not the only factors at play. HKUST ...

Executive Hubris: Good News for Innovation
YANG, Hongyan | TANG, Yi | LI, J. T.

Overconfidence among top managers may be “instrumental” to firm innovation, according to a pioneering new study of more than 6,000 U.S. and Chinese companies. Given the crucial role played by executives in every aspect ...