In this empirical study, we investigate the effects of IT investments on firm risk-return profile, emphasizing the complementarities between IT investments and firm boundary strategies; i.e., diversification and vertical integration. Our results are consistent with a strong moderating role of IT in leveraging firm boundary strategies on both the return and risk dimensions of firm financial perf...

We consider a monopolistic firm producing a good while polluting and using a fossil energy. This firm can adopt a clean technology by incurring an investment cost decreasing exponentially with the adoption date. This clean technology does not pollute and has a lower production cost because it uses a renewable energy. We determine the optimal adoption date for the firm in the case where it is no...

A common focus of merger review is horizontal mergers, namely transactions bringing together two firms that compete directly for at least some sales. However, antitrust agencies also consider the potential anticompetitive effects of vertical mergers, namely transactions bringing together one firm that sells an input with a firm that uses the input in manufacturing its product. The firm selling ...

From the real options perspective the firm is conceived as a portfolio of real options. However, the theory of the firm traditionally argues into a similar direction by viewing the firm as either a set of institutions, as set of property rights or as a set of contracts. Due to this similarity, the question arises how far real options analysis can contribute to the theory of the firm and to an u...

Does Manager Turnover Improve Firm Performance? New Evidence Using Information from Dutch Soccer, 1986-2004 This research examines the impact of manager turnover on firm performance using information from the Dutch soccer league in the period 1986-2004. The advantage of using sports data is that both manager characteristics and decisions and firm outcomes are directly observable. Both differenc...

I extended recruitment research by sampling from the applicant population to investigate factors related to a firm’s attractiveness as an employer on college campuses. Specifically, I surveyed potential applicants at nine different universities and university personnel (faculty and placement staff) at eight of those universities to investigate relationships of recruitment activities, organizati...

This study uses the current financial crisis as a quasi-experiment to examine whether and to what extent corporate boards affect the performance of firms. Using cumulative stock returns over the crisis to measure of firm performance, we find that board independence, as traditionally defined, does not significantly affect firm performance. However, when we re-define independent directors as outs...

We propose a firm lifecycle model in which the firm privately invests in its quality and thereby its reputation. Over time, both the firm and the market learn about the firm’s evolving quality via infrequent breakthroughs. The firm can also exit if its value becomes negative, giving rise to selection effects. In a pure-strategy equilibrium, incentives are single-peaked: the firm shirks immediat...

This paper examines strategic information revelation in a Cournot duopoly with incomplete information about firm 1’s cost and information precision. Firm 2 relies on certifiable and ex post submissions of firm 1, without necessarily knowing whether firm 1 knows its cost or not. The sequential equilibria of the induced communication game are determined for different certifiability possibilities....