Suchergebnisse

ABSTRACTThe importance of knowledge management (KM) processes for organizational performance is now well recognized. Seeking to better understand the short‐term impact of KM on firm value, this article focuses on public announcements of information technology (IT)‐based KM efforts, and uses cumulative abnormal return (CAR) associated with an announcement as the dependent variable. This article employs a contingency approach, arguing that the KM announcement would have a positive short‐term impact on firm value in some conditions but not in others. Thus, it pursues the following research question: What are the effects of contextual factors on the CAR associated with the announcement of an IT‐based KM effort? Specific hypotheses are proposed based on information‐processing theory, organizational learning theory, the knowledge‐based theory of the firm, and the theory of knowledge creation. These hypotheses link CARs to alignment between industry innovativeness and the KM process, alignment between firm efficiency and the KM process, firm‐specific instability, and firm diversification. The empirical study utilizes secondary data on 89 KM announcements from 1995 to 2002. The results largely support the hypotheses. Overall, this article provides empirical support for the theory‐based arguments, and helps develop a contingency framework of the effectiveness of KM efforts.

AbstractThe investor overconfidence theory predicts a direct relationship between market‐wide turnover and lagged market return. However, previous research has examined this prediction in the equity market, we focus on trading in the options market. Controlling for stock market cross‐sectional volatility, stock idiosyncratic risk, and option market volatility, we find that option trading turnover is positively related to past stock market return. In addition, call option turnover and call to put ratio are also positively associated with the past stock market return. These findings are consistent with the overconfidence theory. We also find that overconfident investors trade more in the options market than in the equity market. We rule out explanations other than investor overconfidence, such as momentum trading and varying risk preferences, for our findings.

ABSTRACTManuscript Type: EmpiricalResearch Question/Issue: We examine the relationship of concentration of shareholdings with the number of financial analysts following a firm to see if concentrated shareholders substitute for the monitoring activities of analysts.Research Findings/Results: Using a clean ownership dataset with a sample of 3,115 firm‐year observations for U.S. firms and regression techniques that address any potential endogeneity, we find that analyst following is negatively related to the concentration of outsider and insider shareholdings. We find similar relations for changes in analyst following and changes in ownership concentration.Theoretical Implications: Our results support the argument that an outsider with a larger stake in a firm is more likely to produce its own in‐house information for the monitoring of the firm's managers and avoid both the cost and moral hazard problems associated with analysts. The results also support the argument that if senior managers hold large stakes in the firm, there is a greater likelihood that managerial incentives will be aligned with those of other shareholders.Practical Implications: We contend that there is a governance substitution effect, with concentrated shareholders substituting for the monitoring activities of analysts. Our results are consistent with the opinion that regulators need not fear large shareholders. This is especially applicable to large outside shareholders as we find that the economic effect of concentrated outsider shareholdings is quite strong and greater than that of concentrated insider shareholdings.

AbstractWe use Google search frequency to construct sentiment indices (positive and negative) for the housing market. We find that future housing prices are negatively related to our measure of negative sentiment but not significantly related to that of positive sentiment. These relationships are robust to controls for macroeconomic variables, stock market return, and Housing Market Index, a survey‐based housing sentiment index. Furthermore, we find that an increase in negative sentiment results in a significant negative response in housing prices, while a decrease evokes little response. Thus, the housing market exhibits asymmetric responses to negative and positive sentiment and to increases versus decreases in negative sentiment. We attribute these asymmetric responses to the "negativity effect." Finally, we find that home prices are more sensitive to sentiment during recessionary periods.