How Do Auditors Increase Substantially Firm Value?

How Do Value Creation and Competition Determine Whether a Firm Appropriates Value?

Do Treasure Islands Create Firm Value?∗

They do! Otherwise, their use would not have been so prevalent among firms. How much firm value they create, however, is still an open question. Exploiting a political event in the U.K. that suddenly raised the cost of using tax havens, we find that there was a 0.87% reduction in cumulative abnormal return (CAR) among the sampled firms, corresponding to about £532 million in market capitalizati...

How Do Large Depreciations Affect Firm Performance?

This paper examines how 12 “major depreciations” between 1997 and 2000 affected different measures of firm performance in a sample of over 13,500 companies from around the world. Results suggest that in the year after depreciations, firms have significantly higher growth in market capitalization, but significantly lower growth in net income (when measured in local currency). Firms with a higher...

How Do Social Media Increase Firm Performance? Entrainment of Innovation to Contention

In this theoretical paper, we propose a mechanism through which social media may enhance firm performance. To do so, we tab into a time lens, entrainment—the alignment of the timing and pace of a cyclic activity with those of another activity. We then argue that firms with high social media capabilities can more easily entrain their innovation to the speed, type, amount, and range of contention...

How Do Consumer Buzz and Traffic in Social Media Marketing Predict the Value of the Firm?

Consumer buzz in the form of user-generated reviews, recommendations and blogs signals consumer attitude and advocacy can influence firm value. Web traffic also affects brand awareness and customer acquisition, and is a predictor of the performance of a firm’s stock in the market. The information systems (IS) and accounting literature have treated buzz and traffic separately in studying their r...