This article introduces a new measure of long-term firm performance: long-term investor value appropriation (LIVA). This measure helps to address a disconnect between the common theoretical assumption that managers optimize firm value, and the widespread empirical practice of measuring...

This paper presents a formal model of how higher-order resources affect profit persistence. Higher-order resources provide an abstract representation of dynamic capabilities, and are defined as resources that do not affect profit directly, but can affect other resources that in turn affect...

This paper presents a formal model that elucidates how sustained performance heterogeneity emerges from competitive amplification due to endogenous resource investment under uncertainty. Specifically, the model shows that if resources are scale free, any small resource differences are amplified...

This paper presents Monte Carlo simulations to assess which regression estimators can lead to elevated rates of false positives: results that appear “significant" while they are not. Structuralestimators, such as random effects, logit, and Poisson, are compared to ordinary least squares (OLS),...