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Recent Journal Publications by COB Faculty

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Academic Journal
Strategy & Entrepreneurship
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Academic Journal
Finance

“The efficiency of international information flow: Evidence from the ETF and CEF Prices”

While similar in their trading and organization, closed-end funds (CEFs) and exchange-traded funds (ETFs) differ in their liquidity and ease of arbitrage. We compare their price transmission dynamics using a sample of funds that invest in foreign securities and are most likely to show the deficiencies in the manner in which they process information. Our analysis shows that ETF returns are more closely related to their portfolio returns than CEF returns. However, both fund types underreact to portfolio returns but overreact to domestic stock market returns. A simple trading strategy using these results is profitable with roundtrip trading costs less than 1.38% for CEFs and 0.71% for ETFs.
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Academic Journal
Strategy & Entrepreneurship

“The evolution and internalization of international joint ventures in a transitioning economy”

Although international joint ventures (IJVs) may mature over time and develop competitive viability, they maintain some risk of instability owing to their shared ownership. Such instability can ultimately lead to their internalization by one of the partners. In this study, we consider factors that influence (1) whether IJVs evolve toward becoming a wholly owned subsidiary, and (2) which parent (foreign or local) gains ownership of the venture. We use a sample of Hungarian joint ventures, and find that only when there is both a power imbalance between the parents and high levels of conflict is the likelihood that the joint venture converts to a wholly owned subsidiary enhanced. The extent to which the joint venture has learned from the foreign parent indirectly determines which parent gains full ownership. Extensive knowledge transfer to a joint venture in a transitioning economy combined with high levels of conflict increases the likelihood of the foreign parent gaining full ownership. In contrast, when there is extensive knowledge transfer and low conflict between the parents, the local parent is more likely to internalize the venture. Our results suggest that the relationship between partner power and outcomes in ventures is more complex than originally believed, and is contingent upon the level of conflict between the parents of the IJV.
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Academic Journal
Marketing

“The Evolving Family Assemblage: How Senior Families 'Do' Family”

Purpose
A growing stream of consumer research has examined the intersection of family dynamics, consumption practices, and the marketplace. The purpose of this research is to make sense of the complex nature of family for senior families (adult children and their elderly parents) who employ the use of elder care services and facilities.

Approach
This research analyzes data gathered from in-depth interviews with adult siblings and their elderly parents through the lens of assemblage theory.

Findings
This paper advances a conceptulisation of the family as an evolving assemblage of components, including individual members; material possessions and home(s); shared values, goals, memories, and practices; prominent familial attributes of love and care; and marketplace resources. Three features of the assemblage come to the fore in senior families: the fluid meaning of independence for the elderly parent, the evolution of shared family practices, and the trajectory of the assemblage that is a function of its history and future.

Originality/Value
This research 1) focuses on a stage of family life that has been undertheorised; 2) applies assemblage theory to the family collective, demonstrating that a family can be conceptualised as an ever-evolving assemblage of human and non-human components, and this is a useful lens for understanding how senior families ‘do’ family; and 3) argues for a broader notion of family – one that is not household-centric or focused on families with young children, that encompasses members and materiality, and that foregrounds the dynamic, evolving nature of family life.
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Academic Journal
Finance

“The Financially Material Effects of Mandatory Non-Financial Disclosure”

Complaints from institutional investors suggest that principles-based disclosure regimes that rely on financial materiality standards produce inadequate nonfinancial environmental and social (E&S) information. Using the staggered introduction of 40 country-level regulations that mandate disclosure, I document that reporting E&S information relates to increased investment from institutional owners and has material effects on firms’ investment and financing decisions. Firms mandated to disclose E&S information allocate more investment toward long-term, innovative projects and raise more equity capital. Evidence indicates that disclosure attracts long-term–oriented institutional clientele with E&S preferences, which then feeds back on firm decision making. Although the effects of nonfinancial disclosure are similar to those of improved financial disclosure, this clientele mechanism is unique. Taken together, these results suggest that jurisdictions that rely solely on financial materiality disclosure standards create nonfinancial information frictions with material effects on investors and firm decision making.
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