I’m pleased to highlight several recent research papers published in top academic journals, and congratulate the authors on their achievement:
John Busenbark, Assistant Professor of Management & Organization
Retaining problems or solutions? The post-acquisition performance implications of director retention (Strategic Management Journal)
Acquiring firms often onboard directors from the target during an acquisition, but academic treatments of the topic provide equally compelling logic for whether this would benefit or undermine performance for the ongoing acquiring firm. In our research, we find that retaining a director from the target reduces long-term investor value for the acquirer, and we postulate this is because such directors disrupt the delicate dynamics of the acquiring firm's board.
Retaining problems or solutions? The post-acquisition performance implications of director retention (Strategic Management Journal)
Acquiring firms often onboard directors from the target during an acquisition, but academic treatments of the topic provide equally compelling logic for whether this would benefit or undermine performance for the ongoing acquiring firm. In our research, we find that retaining a director from the target reduces long-term investor value for the acquirer, and we postulate this is because such directors disrupt the delicate dynamics of the acquiring firm's board.
Peter Easton, Notre Dame Alumni Professor of Accountancy
Zhi Da, Howard J. and Geraldine F. Korth Professor of Finance
"Who Pays Attention to SEC Form 8-K?" (The Accounting Review)
The SEC requires public companies to disclose material information on Form 8-K within four days of a triggering event. We show that, on 8-K event dates, there is already significant abnormal institutional attention and price discovery, suggesting that the subsequent 8-K filing may have little direct informational benefit, particularly to retail investors.
Zhi Da, Howard J. and Geraldine F. Korth Professor of Finance
"Who Pays Attention to SEC Form 8-K?" (The Accounting Review)
The SEC requires public companies to disclose material information on Form 8-K within four days of a triggering event. We show that, on 8-K event dates, there is already significant abnormal institutional attention and price discovery, suggesting that the subsequent 8-K filing may have little direct informational benefit, particularly to retail investors.
Benjamin Golez, Associate Professor of Finance
"Disagreement in the equity options and stock returns" (Review of Financial Studies)
What is the effect of investor disagreement on stock returns? We shed light on this question by studying disagreement among equity options investors. We show that the effect of disagreement depends on whether the news about companies is positive or negative. On average high disagreement predicts low stock returns.
"Disagreement in the equity options and stock returns" (Review of Financial Studies)
What is the effect of investor disagreement on stock returns? We shed light on this question by studying disagreement among equity options investors. We show that the effect of disagreement depends on whether the news about companies is positive or negative. On average high disagreement predicts low stock returns.
Daewon Sun, Professor of IT, Analytics, and Operations
"Impact of Organizational Structure on Development Strategy under Equity‐Based Incentives" (Production and Operations Management)
This study considers the product development process for a start-up that relies on equity-based incentives to motivate effort by vendors who are hired to contribute to the development process. We study how the organizational structure of the start-up affects the choice between sequential and concurrent development using a two-task model, in which both tasks must be completed for the start-up to earn revenue.
"Impact of Organizational Structure on Development Strategy under Equity‐Based Incentives" (Production and Operations Management)
This study considers the product development process for a start-up that relies on equity-based incentives to motivate effort by vendors who are hired to contribute to the development process. We study how the organizational structure of the start-up affects the choice between sequential and concurrent development using a two-task model, in which both tasks must be completed for the start-up to earn revenue.
Katie Wowak, Associate Professor of IT, Analytics, and Operations
Nick Berente, Viola D. Hank Associate Professor of IT, Analytics, and Operations
"A Behavioral Perspective on Service Center Routing: The Role of Inertia" (Journal of Operations Management)
We explore the presence of behavioral inertia, which is the propensity for routing agents in service centers to route issues more frequently to other agents with whom they have experience, rather than optimally routing those issues. Leveraging a unique dataset of more than 70,000 routing decisions, we find that, overall, inertia hurts performance, but in certain situations can be beneficial.
Nick Berente, Viola D. Hank Associate Professor of IT, Analytics, and Operations
"A Behavioral Perspective on Service Center Routing: The Role of Inertia" (Journal of Operations Management)
We explore the presence of behavioral inertia, which is the propensity for routing agents in service centers to route issues more frequently to other agents with whom they have experience, rather than optimally routing those issues. Leveraging a unique dataset of more than 70,000 routing decisions, we find that, overall, inertia hurts performance, but in certain situations can be beneficial.
My thanks to all for advancing Mendoza’s research contributions.
In Notre Dame,
Martijn