This paper provide a large-deviations approximation of the tail distribution of total financial losses on a portfolio consisting of many positions. Applications include the total default losses on a bank portfolio, or the total claims against an insurer. The results may be useful in allocating exposure limits, and in allocating risk capital across different lines of business. Assuming that, for...

Capital expenditures are a critical part of hospitals' efforts to maintain quality of patient care and financial stability. Over the past 20 years, finding capital to fund these expenditures has become increasingly challenging for hospitals, particularly independent hospitals. Independent hospitals struggling to find ways to fund necessary capital investment are often advised that their best st...

This article examines how research productivity, administrative service, and teaching affect reputational capital in the market for academic economists. Also, we investigate the issue of the durability of reputational capital, estimating the penalties associated with gaps in research output. Our results reveal that (1) the market makes a distiniction between the quantity and the quality of an i...

We investigate the relationship between venture capital (VC) networks and investment performance in China. Distinct features of China’s VC networks are captured in our econometric model through the inclusion of an index of network stability and a dummy variable that indicates a VC firm’s connections with the Chinese state. Our econometric analysis shows that a VC firm’s position in its network,...

How to design bank capital requirements when banks can misreport the value of their assets? We show that the answer depends critically on the existence of secondary markets for bank assets. Without secondary markets, capital requirements based on banks’reporting are more socially desirable than a fixed capital requirement if savings on costly bank capital are suffi ciently high. Yet with second...

This paper examines how professional service firms have used a combination of clan and bureaucratic control techniques to manage change over a 100-year period. Both sets of controls have been present throughout, but the mix between the two has altered to reflect changes in the broader institutional environment. These shifts create new contradictions that eventually undermine their very success....

venture capital, innovation models, research management, corporate research After carefully evaluating a variety of mechanisms to leverage the world class Venture Capital (VC) firms in the vicinity of Hewlett-Packard's Silicon Valley headquarters, Hewlett-Packard Labs (hpl.hp.com) and the venture capital firm Foundation Capital (www.foundationcapital.com) entered into a strategic relationship. ...

This paper explores the productivity differential between return migrants (“Sea Turtles”) and non-migrants through a case study of China’s venture capital (VC) industry. I find that even after correcting for selection bias, return venture capitalists are less productive than comparable non-migrants in targeting promising projects and/or providing value-added services. Given that the VC industry...

Both intellectual capital (IC) and knowledge management (KM) have been recognised as significant resources, when properly managed should enhance competitiveness, sustainability and performance. IC comprises the human, organisational and relational capital or resources. KM is about the ‘flow of knowledge’ from individual learning to organisational learning through KM processes to enhance organis...

This paper investigates venture capitalists' monitoring of managerial behaviour by examining their impact on CEO pay-performance sensitivity across various controlling structures in Chinese firms. We find that the effectiveness of venture capitalists' monitoring depends on different types of agency conflict. In particular, we find that venture capital (VC) monitoring is hampered in firms that e...