This paper proposes a risk-based explanation of the momentum anomaly on equity markets. Regressing the momentum strategy return on the return of a self-financing portfolio going long (short) in stocks with high (low) crash sensitivity in the USA from 1963 to 2012 reduces the momentum effect from a highly statistically significant 11.94% to an insignificant 1.84%. We find additional supportive out-of sample evidence for our risk-based momentum explanation in a sample of 23 international equity markets.
When confronted with the decision of how to pass on ownership and management, incumbent family business owners can choose between two different justice principles: Equality and equity. While equality typically represents the justice principle that prevails in the family sphere, equity is the prevalent justice principle in the business sphere. Our paper investigates which justice principle incumbents intend to choose when passing on the business within the family, and how the related preferences alter depending family influence in ownership and management. Based on survey responses of 1’258 owner-managers, we found that ownership and management are passed on according to different justice principles. Surprisingly, an increased family influence in ownership leads to a preference for the equity principle in management and ownership succession. With our study, we contribute to the literatures of family business succession, justice and governance.
Given the importance of the entrepreneurial founding team (EFT) at the top of a venture and the frequently observed turnovers within those teams, we investigate how EFT entries and exits impact new venture growth post transition. As turnovers have a negative impact on team members’ relational embeddedness and cohesion, we hypothesize that turnovers negatively impact venture growth. We further hypothesize that this negative relationship changes when the transition occurs for dyadic versus triadic teams. Employing a database on German start-ups, we find a negative succession-growth relationship which is greater for triadic teams. With our research, we contribute to the literatures on firm growth and entrepreneurial teams.
As family firms are often portrayed as path-dependent failing to implement organizational change, succession can act as a path breaker or amplifier affecting post-succession organizational change. We provide a model that investigates the power of the incumbent in the pre- and post-succession period as important determinants for organizational change post-succession.
Worldwide, more than one million people die on the roads each year. A third of these fatal accidents are attributed to speeding, with properties of the individual driver and the environment regarded as key contributing factors. We examine real-world speeding behavior and its interaction with illuminance, an environmental property defined as the luminous flux incident on a surface. Drawing on an analysis of 1.2 million vehicle movements, we show that reduced illuminance levels are associated with increased speeding. This relationship persists when we control for factors known to influence speeding (e.g., fluctuations in traffic volume) and consider proxies of illuminance (e.g., sight distance). Our findings add to a long-standing debate about how the quality of visual conditions affects drivers’ speed perception and driving speed. Policy makers can intervene by educating drivers about the inverse illuminance‒speeding relationship and by testing how improved vehicle headlights and smart road lighting can attenuate speeding.
Why does mass customization succeed in some East Asian markets but fail in others? Building on and extending prior work on uncertainty avoidance, this research suggests that providing mass customization in highly uncertainty-avoiding cultures can have negative consequences for consumers and companies, including longer configuration duration, lower conversion rates to actually purchase the customized product, and a reduced degree of sharing one’s product with other consumers. We provide support for those propositions based on two large-scale field studies involving more than 700,000 prospective car buyers in Japan and Taiwan (scoring high on uncertainty avoidance) versus China and Singapore (scoring low on uncertainty avoidance). Our findings on actual customers suggest that neglecting cross-national differences in uncertainty avoidance across East Asia puts both consumers and companies at risk due to more onerous customization experiences for consumers and substantially lower conversion for companies.
Although the end consumer is becoming increasingly important in the hearing aid market, little is known about the factors that lead consumers to choose one hearing aid brand over another. In an exploratory study, we find that consumers rely primarily on hearing care professionals, and less so on marketing communications and word of mouth, when choosing hearing aid brands. Competence emerges as the most effective characteristic of hearing care professionals, followed by their friendliness and the emphasis of product utility (vs. product features).
