This paper provides a theory of firm behavior motivated by moral duty, self-interest, and social pressure. A morally-managed and a self-interested firm compete in a market in which their corporate social performance (CSP) provides product differentiation. In addition to acting as consumers,...

We develop a model in which firms set their salary levels before matching with workers. Wages fall relative to any competitive equilibrium while profits rise almost as much, implying little inefficiency. Furthermore, the best firms gain the most from the system while wages become compressed. We...

In this study, we investigate the role of experience diversity on learning by U.S. airlines. Do firms learn more from diverse of homogeneous accident experiences? Existing literature provides conflicting answers to this question, with some theories suggesting that heterogeneous experiences are...

In this study we investigate the role played by managerial actions in explaining stock market returns and accounting earnings of 57 Internet firms engaged in Business-to-Business (B2B) e-commerce. We classify 3,166 managerial actions undertaken by our sample firms between the firm's IPO date and...

Experimental evidence suggests that people make time-inconsistent choices and display overconfidence about positive personal attributes. Do these features affect consumer behavior in the market? To address this question we use a new panel data set from three US health clubs with information on...

This paper uses daily fund flow data to examine the extent of late trading in the mutual fund industry. Using data from a 10-15 percent subsample of the industry, I find annual long-term shareholder losses due to late trading of about 5 basis points in international equity funds and 0.6 basis...

The authors argue that emotions characterized by certainty appraisals lead to heuristic information processing, while emotions characterized by uncertainty appraisals lead systematic information processing. The firs study demonstrated that participants who are induced to feel emotions...

We study the evolution of industries in terms of three interrelated key themes that together form an analytical lens. The first theme--strategy and strategic dynamics--raises the question of how companies can gain, sustain, or regain profitable growth in the face of various types of strategic...

The central argument for increasing the number of women on corporate boards of directors has been the so-called "business case for diversity" which proposes that women and minorities add valuable new perspectives that result in enhanced corporate performance. Unfortunately, the empirical...