As a result of sustained housing market fragility, a growing number of borrowers are walking away from their underwater homes even though they have the ability to pay. Despite recent advances, questions remain about what influences this decision. In this paper, we use survey data to examine the role of social expectations, financial literacy and knowledge of default consequences. We find that h...

A recently published meta-analysis of the impact of strategic planning on financial performance omitted a major study of corporate planning practice in Fortune 500 manufacturing firms. This article briefiy reviews that study in light of the results of the meta-analysis. Additional analysis examines performance and firm survival over a longer time period than in the original work. The overall co...

We conduct a detailed, micro-level analysis of 126 strategic alliance contracts, all of which were written to sponsor early-stage, genomics-based biotechnology research at small R&D companies. All contracts prescribe staged investment decisions to capture the option value associated with the sequential resolution of uncertainty, but the contracts deal with agency problems differently. Among pre...

In this paper we shall represent strategic planning problems by dynamic decision trees, in which the nodes are projects that can be deferred or postponed for a certain period of time. Using the theory of real options an enhanced option pricing method is provided, where the relationship of investments is taken into consideration as well, and the optimal path of the decision tree, i.e. the path w...

This study examines the possibility to apply the theory of multidimensional accounting (momentum accounting) in a Brazilian Navy’s Services Provider Military Organization (Organização Militar Prestadora de Serviços OMPS). In general, the core of the said theory is the fact that Accounting does not recognize the inertia of transactions occurring in an entity, and that occur repeatedly in some ca...

As the reach of outsourcing extends to include strategic business functions, a central question for outsourcing managers is whether outsourcing creates value. In contrast with transactional outsourcing, strategic outsourcing is characterised by higher levels of business uncertainty and complex co-ordination requirements. Consequently, strategic outsourcing involves greater contractual risks and...

Several papers have identified the hazards associated with event-induced variance, yet event studies continue to ignore the problem. This study demonstrates that the most commonly used abnormal return detection methods reject the null hypothesis of zero abnormal returns too often. This causes researchers to conclude the detection of abnormal performance when none is present. Two easy to employ ...

Two decision-makers choose hawkish or dovish actions in a conflict game with incomplete information. The decision-making can be manipulated by “extremists” who send publicly observed cheaptalk messages. The power of extremists depends on the nature of the underlying conflict game. If actions are strategic complements, a “hawkish extremist” (provocateur) can increase the likelihood of conflict b...

Many agent-based models of financial markets have been able to reproduce certain stylized facts that are observed in actual empirical time series data by using “zero-intelligence” agents whose behaviour is largely random in order to ascertain whether certain phenomena arise from market microstructure as opposed to strategic behaviour. Although these models have been highly successful, it is not...