We analyze the implications of entrepreneurial spawning for a variety of firm characteristics such as size, focus, profitability, and innovativeness. We examine the dynamics of spawning over time. Our model accounts for much of the empirical evidence relating to the relation between spawning and firm characteristics. Firms that have higher patent quality spawn more, as do firms that have higher...

In addition to firm and industry characteristics, the heterogeneity of foreign direct investment (FDI) has to be taken into account when analyzing the determinants of outward FDI. We combine two firm-specific datasets on German firms with subsidiaries and joint ventures in the Czech Republic, compared to a control group of German firms without FDI in this host country. The impact of firm and in...

This paper provides new evidence about the link between firm level total factor productivity (TFP) and stock returns. We estimate firm level TFP and show that it is strongly related to several firm characteristics such as size, the book to market ratio, investment, and hiring rate. Low productivity firms earn a significant premium over high productivity firms in the following year, and this pre...

Prior studies consistently report higher explanatory power (R) for firm-specific returns-earnings models than for pooled models. The improvement in R by adding firm-specific coefficients to returns-earnings regressions is cited as evidence that price responses to earnings news vary with certain firm-specific characteristics. We argue that relying on R as a criterion to evaluate competing return...

Interorganizational alliances are widely recognized as critical to product innovation, particularly in high technology markets. Many new product development (NPD) alliances tend to be asymmetric, that is, they are formed between a larger firm and a smaller firm. These asymmetric alliances typically result in changes in the shareholder values of the partner firms. Are the changes in shareholder ...

I alliances are widely recognized as critical to product innovation, particularly in hightechnology markets. Many new product development (NPD) alliances tend to be asymmetric, that is, they are formed between a larger firm and a smaller firm. As is the case with alliances in general, asymmetric alliances also typically result in changes in the shareholder values of the partner firms. Are the c...

Interorganizational alliances are widely recognized as critical to product innovation, particularly in high technology markets. Many new product development (NPD) alliances tend to be asymmetric, that is, they are formed between a larger firm and a smaller firm. These asymmetric alliances typically result in changes in the shareholder values of the partner firms. Are the changes in shareholder ...