Operational disruptions can impact a firm's risk, which manifests in a host of operational issues, including a higher holding cost for inventory, a higher financing cost for capacity expansion, and a higher perception of the firm's risk among its supply chain partners. While disruptions have...

Multiple delays of the Airbus A380 have shocked analysts and investors alike. What are the causes of these delays and how should investors respond to the signals they may be sending about the company's outlook?

We analyze a signaling game between the manager of a firm and an investor in the firm. The manager has private information about the firm's demand and cares about the short-term stock price assigned by the investor. Previous research has shown that under continuous decision choices and the...