Over the years since airline deregulation five of the remaining U.S. legacy carriers lost money on mergers that cost them a total of $29.6 billion. The combined market cap of these carriers at the end of 2007 was $15.5 billion. In other words, their return on merger investments was -48%. Why?...

Improving business performance, profits, as well as economic growth in the globalisation age becomes vital for enterprises which efficiently and effectively foster and meet the reasonable expectancies of their stakeholders - consumers, employees, suppliers, investors, community and environment -...

Persuasion is a fundamental part of social activity, yet it is rarely studied by economists. We compare the traditional economic model, in which persuasion is communication of objectively valuable information, with a behavioral model, in which persuasion is an effort to fit the message into the...

In this paper, we investigate the effectiveness of the firm's proactive management of consumer-to-consumer communication. We are particularly interested in understanding how, if at all, the firm should go about effecting meaningful word-of-mouth. To tackle this problem, we implemented a...

This paper provides empirical evidence that industry-specific non-financial metrics, whose disclosure is mandated by the U.S. Department of Transportation (DOT) for the ten largest U.S. airlines, have explanatory power for top executive pay-for-performance relations beyond that provided by...

In this paper, we evaluate growth stocks by modeling a company's customer equity. We start with the observation that the number of customers in successful start-ups increases very quickly (exponentially) in the first few years. Then the customer base converges towards an industry average. On the...

In this study we examine the possible reasons for firing of ad agencies and relate them to the stock price consequences of such firings using event-study methodology. After analyzing a variety of performance measures for profitability, sales, and market share of the client firms prior to the...

We demonstrate that people discount delayed task outcomes due to perceived changes over time in supplies of slack. Slack is the perceived surplus of a given resource available to complete a focal task. For temporally near events, investing a resource for one purpose may cause one to fail to...

There is little question that new product innovation is a cornerstone to firm success. Particularly in technologically dynamic markets like personal computers, new products are central to long-term financial performance. However, exactly how new product introductions influence firm value is less...