In this paper we model the value of a firm based on its current earnings and cash balances. The value is modelled on the assumption that earnings follow a mean-reverting process. The effect of advertising on earnings is modelled, and the condition for optimal advertising derived. The value of...

This paper demonstrates the financial and real consequences of customer satisfaction using a novel and comprehensive Yelp dataset. I show that Yelp ratings are significant indicators of business outcomes in a regression discontinuity design setting. A one-half star increase in Yelp ratings leads...

We present evidence that restrictions to the set of feasible financial contracts affect buyer - supplier relationships and the organizational form of the firm. We exploit a regulation that restricted the maturity of the trade credit contracts that a large retailer could sign with some of its...

This paper studies how financial frictions affect product market decisions. As different products have different production cycles and generate cash-flow at different maturities, companies may adjust product mix in order to alleviate financial constraints. I use the wine sector in Portugal as a...

We propose a worldwide-based loan portfolio to measure banks’ sectoral concentration that features prominently in episodes of bank specialization. We use the banks’ real loan allocation worldwide instead of the in-sample data to compute a bank specialization. We find that firms borrowing...

Academic institutions, involved in technology transfer to industry, are always concerned about the "fairness" of the royalty rate payable to them. The common method used by practitioners is the "Industry-Standard Approach" which is based mainly on past experience. However, such an approach is...

This paper investigates how consumers and investors react to the standardized disclosure of data privacy practices. Since December 2020, Apple has required all apps to disclose their data collection practices by filling out privacy "nutrition" labels that are standardized and easy-to-read. We...

In April 2013 the International Integrated Reporting Council (IIRC) published a consultation draft of their Integrated Reporting (IR) - International Framework. This draft document was open for public comment until 15 July 2013 and the IIRC plans to issue the initial version of the Framework in...

The existence of bitcoins and NFTs, and perhaps also the possibility of founding a company on a blockchain network, should have gotten around after 15 years. At present, software engineers continue to work on solutions in Web3, new business activities such as coin minting, blockchain...

si les normes ISO 9000 traduisent un consensus international quant auxcaractéristiques essentielles que doit posséder un système qualité pour garantir le fonctionnement efficace de toute organisation, il semblerait qu'après des années de certification, les responsables qualité doivent...