The Faculty at Simon have been published in a variety of academic journals. For an extensive listing of the published articles and papers, visit the Social Science Research Network (SSRN).
Dan Horsky and Marshall Freimer
A consumer products company comes out with a series of ads for a few months, takes a break, then airs a new set several months later. Inconsistent? Spotty? Turns out this is good for business. In their paper, “Periodic Advertising Pulsing in a Competitive Market,” Simon professors Dan Horsky and Marshall Freimer build a theoretical model showing that advertising in concentrated bursts, interspersed with breaks—called pulsing—is the best advertising strategy.
One of the basic tenets taught in business school is that debt is a good thing for profitable firms. They reap desirable tax deductions from the interest they pay. Some of the research done on tradeoff theories of capital structure, however, predicts that debt is actually a detriment. Not so, says a study of the accounting data for publicly traded firms in the United States, written by Simon professor Toni Whited and her colleagues Andras Danis and Daniel Rettl. They argue that debt is a benefit. Read more here.
Firms led by Democrats and headquartered in Democratic-leaning states spend significantly more on corporate social responsibility than do their Republican counterparts in Republican states, a Simon professor has found. While his finding didn’t surprise Leonard Kostovetsky, the extent of the spending did. He and co-author Alberta Di Giuli estimate that Corporate Social Responsibility (CSR) costs Democratic-leaning firms approximately $20 million more in annual SG&A expenses—or about 10 percent of net income—than GOP-led firms. Read more here.
Companies hold more cash than they used to. In the early 1980s, 10 percent of a firm’s assets were invested in Treasury bonds, cash accounts, and the like. These days, it’s more like 20 percent. In “Competition, Cash Holdings, and Financing Decisions,” Simon professor Boris Nikolov and co-authors Erwan Morellec and Francesca Zucchi build a model that provides a theoretical framework to figure out the benefits and costs of holding cash and test predictions generated by the model to help answer these questions.
In a new study, Assistant Professor Jeanine Miklós-Thal shows that retailers can collude more easily on the prices consumers pay by also agreeing among them to pay above-cost wholesale prices and slotting fees to their suppliers. “Colluding Through Suppliers” is the first to look at collusion on wholesale prices as a method to facilitate collusion on output prices.
Barry A. Friedman
What drives people to become entrepreneurs, particularly in countries with transitional economies? The question is of special interest to Simon School lecturer Barry A. Friedman. He has a doctorate in Industrial and Organizational Psychology, and teaches abroad during breaks. Dr. Friedman is interested in how the role of entrepreneurship differs among economies. Read more here.
New research by Simon School assistant professor Guy Arie brings a fresh look at competition among firms that operate in multiple markets. Multimarket firms, common in the United States and world economy, compete in more than one market but don’t overlap in all markets. Companies move in and out of markets all the time as they expand sales and acquire other firms. The decisions they make about price, quantity, and other facets of product management expand or reduce their presence in various regions. Read more here.
Media companies seeking new ways to promote their products—television shows in particular—will find new insight in recent research by Simon School assistant professor Mitchell Lovett. Lovett and co-author Richard Staelin of Duke University studied the roles that social engagement and advertising play in building entertainment brands. Read more here.
A new paper by Simon professor Abraham Seidmann and Professor Bing Jing of Cheung Kong Graduate School of Business, “Finance Sourcing in a Supply Chain,” examines the merits of trade versus bank credit between a manufacturer and a retailer with limited capital. The study adds critical new insights to an active research area that has important managerial implications.
Paulo Albuquerque and Yulia Nevskaya
Scheduling product innovation is one of the toughest tasks managers tackle. How long should a TV series last, for example? How frequently should video game updates be released? At its core, the answer lies in knowing why and how consumers are using the product. In a new paper, “The Impact of Innovation on Product Usage: A Dynamic Model with Progression in Content Consumption,” Paulo Albuquerque, associate professor of marketing, and doctoral candidate Yulia Nevskaya built a model that both explains how consumers make decisions about products that undergo regular updates and provides insights on product innovation.
What is it about brands that drive word of mouth? Many studies have been done about word-of-mouth (WOM) marketing, and more still on brands. Though both are central concepts in marketing, surprisingly little research has focused on the role of brands in word of mouth. Mitchell J. Lovett, assistant professor of marketing, is a co-author of a new study that is the first to explore the relationship between them. Lovett produced on “On Brands and Word-of-Mouth” with Renana Peres of Hebrew University of Jerusalem and Ron Schachar of IDC Herzliya’s Arison School of Business.
Competition for patients among urology physicians groups has a direct effect on women’s health, a new study has found. Ryan McDevitt, assistant professor of economics and management, and James Roberts of Duke University, co-authored “Market Structure and Gender Disparity in Health Care: Preferences, Competition, and Quality of Care.”
Jeanine Miklós-Thal and co-author Hannes Ullrich were looking for a way to test whether future career prospects affect current effort incentives when they hit upon the perfect testing ground: European soccer. “Soccer is a nice way to test these incentives,” says Miklós-Thal, assistant professor of economics and marketing at the Simon School. “You need an environment where some people have a chance to be promoted and others do not. You can’t test the same thing in a business environment.” Read more here.
Simon School professors Joanna Shuang Wu, associate professor of accounting, and Edward L. Owens, assistant professor of accounting, set out to investigate for themselves whether a large sample of bank-holding companies were indeed window-dressing leverage numbers to mask fluctuations during the quarter. They also wanted to see if the market knew—and if it cared. Read more on "Banks and Short-Term Borrowing."
Paul Ellickson,Simon School assistant professor of economics and of marketing, who studies the economics of retail competition, researched the question with Paul Grieco of Pennsylvania State University, in “Density versus Differentiation: The Impact of Wal-Mart on the Grocery Industry". Read more on "Density versus Differentiation: The Impact of Wal-Mart on the Grocery Industry."
Journal of Accounting and Economics
Journal of Financial Economics
Journal of Monetary Economics