ABSTRACT Japanese stock returns are even more closely related to their book‐to‐market ratios than are their U.S. counterparts, and thus provide a good setting for testing whether the return premia associated with these characteristics arise because the characteristics are proxies for covariance with priced factors. Our tests, which replicate the Daniel and Titman (1997) tests on a Japanese sample, reject the Fama and French (1993) three‐factor model, but fail to reject the characteristic model.

The Declining Price Anomaly in Dutch Dutch Rose Auctions by Gerard J. van den Berg, Jan C. van Ours and Menno P. Pradhan. Published in volume 91, issue 4, pages 1055-1062 of American Economic Review, September 2001

This paper examines whether firms emerging from conglomerate stock breakups are able to affect the types of financial analysts that cover their firms as well as the quality of information generated about their performance. Our sample comprises 103 focus‐increasing spin‐offs, equity carve‐outs, and targeted stock offerings between 1990 and 1995. We find that, after these transactions, sample firms experience a significant increase in coverage by analysts that specialize in subsidiary firms’ industries, and a 30–50% increase in analyst forecast accuracy for parent and subsidiary firms. The improvement in forecast accuracy is partially attributable to expanded disclosure. However, forecast improvements for specialists exceed those for non‐specialists, leading us to conclude that corporate focus can facilitate improved capital market intermediation by financial analysts with industry expertise.

It is difficult for the firm competing through information technology resources to gain a sustainable advantage because systems are easy to imitate and substitute resources are often available to competitors. The innovator may be unable to appropriate all of the benefits from information technology investments. Airlines have installed computerized reservations systems in travel agencies to appropriate the returns from their investments in information technology. The airlines expected to obtain a number of benefits from this strategy, including increased efficiency, possible bias in favor of the computerized reservations systems owner on the part of the travel agent, and fees from other airlines for making reservations for them. The purpose of this paper is to evaluate the appropriation of value by computerized reservations systems owners from deploying systems in travel agencies. These benefits, beyond fees from travel agents, should be seen in the vendor airline's market share between cities and in the overall performance of the airline at an industry level. This paper models airline performance as a function of computerized reservations systems ownership at two levels: for selected city-pairs and at the overall level of the firm. The city-pair analysis employs a multinomial logit market share model that analyzes five years of data on 72 city-pair routes. The industry model uses longitudinal data for a panel of 10 airlines for 12 years. The results of both analyses support hypotheses that computerized reservations systems ownership is positively related to airline performance. It appears that strong airlines have appropriated the benefits of their computerized reservations systems, turning them into highly specialized assets for further travel-related innovation. This work offers useful theoretical extensions and methodological approaches for the study of similar kinds of network technology innovations that are currently being deployed in association with electronic commerce on the Internet.

C. Marlene Fiol, Edward J. O'Connor, Herman Aguinis, All for One and One for All? The Development and Transfer of Power across Organizational Levels, The Academy of Management Review, Vol. 26, No. 2 (Apr., 2001), pp. 224-242

This paper examines learning curves in the health care setting to determine whether organizations achieve performance improvements from cumulative experience at different rates. Although extensive research has shown that cumulative experience leads to performance improvement across numerous contexts, the question of how much of this improvement is due to mere experience and how much is due to collective learning processes has received little attention. We argue that organizational learning processes may allow some organizations to benefit more than others from equivalent levels of experience. We thus propose that learning curves can vary across organizations engaged in the same “learning task,” due to organizational learning effects. To investigate this proposition, we investigate cardiac surgery departments implementing a new technology for minimally invasive cardiac surgery. Data on operative procedure times from a sample of 660 patients who underwent the new operation at 16 different institutions are analyzed. The results confirm that cumulative experience is a significant predictor of learning, and further reveal that the slope of the learning curve varies significantly across organizations. Theoretical and practical implications of the work are discussed.

A model integrating competing theories of social capital with research on career success was developed and tested in a sample of 448 employees with various occupations and organizations. Social capital was conceptualized in terms of network structure and social resources. Results of structural equation modeling showed that network structure was related to social resources and that the effects of social resources on career success were fully mediated by three network benefits: access to information, access to resources, and career sponsorship.

The study investigates the impact of patriotism, nationalism and internationalism as antecedents to consumer ethnocentrism in Turkey and the Czech Republic. Controlling for demographics, the findings indicate that the impact of patriotism and nationalism is not consistent across the two countries. Consumer ethnocentrism in Turkey is fueled by patriotism, and in the Czech Republic by nationalism. Internationalism does not have a significant effect on consumer ethnocentrism in either country. Managerial implications of these findings are considered and future research directions are identified.