Why Are Firms Rigid? A General Framework and Empirical Tests
نویسندگان
چکیده
We present a general framework for understanding why firms are slow to make major strategic changes in a wide range of empirical settings. We then apply this framework to investigate, more specifically, the relationship between firm age and scope in hedge funds. Our empirical analyses demonstrate that younger hedge funds outperform older hedge funds both before and after the launch of a new fund. Based on our framework, these results suggest that age-based rigidity in hedge funds is more attributable to internal political frictions that influence project selection than to constraints associated with exchange partners or implementation costs. We conclude by discussing how our framework can be used to identify the dominant source of rigidity in other contexts.
منابع مشابه
A model for employer’s decision for recruitment
This paper presents a theoretical and empirical analysis of this decision and how it relates to wage setting and the provision of general training. The theoretical framework is a promotion tournament involving M competing firms with heterogeneous productivities, two-level job hierarchies, and a fixed number of managerial positions. This paper also considers an alternative model based on variati...
متن کاملSupplier Development Activities and Buying Firm’s Performance: An Empirical Investigation of Iranian SMEs
This study attempts to investigate the major antecedent factors that influence manufacturing SMEs intentions toward the implementation of supplier development activities in Iranian SMEs. In order to achieve this objective, the research constructs were developed. The conceptual framework underlying this study was based on the theories of supplier development activities and social capital. These...
متن کاملMerger Waves: Theory and Evidence
This paper presents a model that incorporates product market competition into the standard neoclassical framework. The model explains why value-maximizing firms conduct mergers that appear to lower shareholder value. In a Cournot setting, the model demonstrates a prisoners’ dilemma for merging firms in a merger wave. Consistent with the model’s implications, the paper empirically documents that...
متن کاملEconomic Crisis and Audit Fees
Economic crisis generally increases firms’ bankruptcy and consequently audit risk. Hence, auditors are more likely to respond to this increased risk through increasing audit fees. However, in the lack of adequate empirical and theoretical evidence, the role of this macro-economic variable, economic crisis, is not clearly demonstrated on audit fees. Therefore, this study investigates the role of...
متن کاملتاثیرتوسعه بانکی بر انتشار CO2 درایران
Introduction: Identifying the effect of energy consumption, economic growth and foreign trade on CO2 emissions have been studied at both national and international levels. However, there have been very few researches on the effect of financial and banking development on the CO2 emissions, especially in Iran. So, this study aimed to cover this research gap. Methods: This study was a time-series...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید
ثبت ناماگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید
ورودعنوان ژورنال:
- Organization Science
دوره 26 شماره
صفحات -
تاریخ انتشار 2015