Download or read book The Lemons Problem in Markets for Strategy written by Mary J. Benner and published by . This book was released on 2015 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: Research in corporate governance has predominantly focused on the moral hazard problem and governance mechanisms that mitigate it. In this conceptual paper, we instead focus on adverse selection as an alternative agency problem, emphasizing well-intentioned managers making strategic choices they believe will increase firm value, but facing difficulty informing capital market participants about the value of these choices. We suggest that more valuable strategies are more difficult for market participants to evaluate, and that pressures on managers to adopt easy-to-evaluate strategies can generate this adverse selection or 'lemons' problem. We argue that governance mechanisms designed to mitigate moral hazard operate differently here, in some cases exacerbating rather than solving the adverse selection problem. We further propose that firms with unique and complex strategies may migrate to private equity.
Download or read book Understanding and Managing Strategic Governance written by Wei Shi and published by John Wiley & Sons. This book was released on 2021-08-04 with total page 323 pages. Available in PDF, EPUB and Kindle. Book excerpt: Explore the interplay between corporate governance and strategic decision-making in this startling new resource In Understanding and Managing Strategic Governance, strategy and management experts Dr. Wei Shi and Robert E. Hoskisson deliver an insightful exploration of the influence that governance actors, like the board of directors, activist investors, institutional investors, and securities analysts, have on important strategic decisions. Based on surveying the latest research and analyzing unique datasets compiled by the authors, the book explains the impact that governance actors have on a firm’s strategic choices and the quality of such choices as well as the unintended consequences of that impact. The authors also describe how executives can manage the conflicting interests of multiple governance actors and leverage the influence of these actors to make effective strategic decisions. In this book, you’ll discover: How to avoid the strategic pitfalls that arise from governance actor influence and harm firms’ long-term competitiveness The effect that governance actors can have on corporate strategy, competitive strategy, corporate innovation strategy, global strategy, stakeholder strategy, and more The latest trends in corporate governance and their implications for managers, regulators, and policy makers in this area Perfect for C-level executives, board of directors, and institutional investors as well as students of corporate governance and strategy, Understanding and Managing Strategic Governance is a revealing and original examination of the interplay between corporate governance and firm strategy and how to manage that interplay to create sustainable competitive advantages.
Download or read book Trading Dynamics in Decentralized Markets with Adverse Selection written by Benjamin Lester and published by . This book was released on 2013 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt: The authors study a dynamic, decentralized lemons market with one-time entry and characterize its set of non-stationary equilibria. This framework offers a theory of how a market suffering from adverse selection recovers over time endogenously; given an initial fraction of lemons, the model provides sharp predictions about how prices and the composition of assets evolve over time. Comparing economies in which the initial fraction of lemons varies, the authors study the relationship between the severity of the lemons problem and market liquidity. They use this framework to understand how asymmetric information contributed to the breakdown in trade of asset-backed securities during the recent financial crisis, and to evaluate the efficacy of one policy that was implemented in attempt to restore liquidity.
Download or read book Trading Dynamics in Decentralized Markets with Adverse Selection written by Benjamin Lester and published by . This book was released on 2011 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The authors study a dynamic, decentralized lemons market with one-time entry and characterize its set of non-stationary equilibria. This framework offers a theory of how a market suffering from adverse selection recovers over time endogenously; given an initial fraction of lemons, the model provides sharp predictions about how prices and the composition of assets evolve over time. Comparing economies in which the initial fraction of lemons varies, the authors study the relationship between the severity of the lemons problem and market liquidity. They use this framework to understand how asymmetric information contributed to the breakdown in trade of asset-backed securities during the recent financial crisis, and to evaluate the efficacy of one policy that was implemented in attempt to restore liquidity.
Download or read book Behavioral Strategy in Perspective written by Mie Augier and published by Emerald Group Publishing. This book was released on 2018-09-21 with total page 295 pages. Available in PDF, EPUB and Kindle. Book excerpt: Behavioral strategy has evolved as a field the last decades both intellectually and institutionally. This volume examines the relatively new field of behavioral strategy and its contribution to strategic management, with papers reflecting the past and present of behavioral strategy as a field, as well as possible avenues for future developments.
Download or read book Strategic Responses for a Sustainable Future written by Torben Juul Andersen and published by Emerald Group Publishing. This book was released on 2021-09-06 with total page 240 pages. Available in PDF, EPUB and Kindle. Book excerpt: Strategic Responses for a Sustainable Future considers how modern organizations can respond to and deal with increasingly uncertain environmental conditions with the aim of creating effective solutions that can sustain business growth and performance.
Download or read book Organizing Entrepreneurial Judgment written by Nicolai J. Foss and published by Cambridge University Press. This book was released on 2012-03-01 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Entrepreneurship, long neglected by economists and management scholars, has made a dramatic comeback in the last two decades, not only among academic economists and management scholars, but also among policymakers, educators and practitioners. Likewise, the economic theory of the firm, building on Ronald Coase's (1937) seminal analysis, has become an increasingly important field in economics and management. Despite this resurgence, there is still little connection between the entrepreneurship literature and the literature on the firm, both in academia and in management practice. This book fills this gap by proposing and developing an entrepreneurial theory of the firm that focuses on the connections between entrepreneurship and management. Drawing on insights from Austrian economics, it describes entrepreneurship as judgmental decision made under uncertainty, showing how judgment is the driving force of the market economy and the key to understanding firm performance and organization.
Download or read book Disruptive Change and the Capital Markets written by Marius Fischer and published by Walter de Gruyter GmbH & Co KG. This book was released on 2023-04-03 with total page 320 pages. Available in PDF, EPUB and Kindle. Book excerpt: The risk-based approach to capital markets regulation is in crisis. Climate change, shifting demographics, geopolitical conflicts and other environmental discontinuities threaten established business models and shorten the life spans of listed companies. The current rules for periodic disclosure in the EU fail to inform market participants adequately. Unlike risks, uncertainties are unquantifiable or may only be quantified at great cost, causing them to be insufficiently reflected in periodic reports. This is unfortunate, given the pivotal role capital markets must play in the economy’s adaptation to environmental discontinuities. It is only with a reformed framework for periodic disclosure, that gradual and orderly adaptation to these discontinuities appears feasible. To ensure orderly market adaptation, a new reporting format is required: scenario analysis should be integrated into the European framework for periodic disclosure.
Download or read book Endogenous Market Segmentation for Lemons written by Kyungmin Kim and published by . This book was released on 2009 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper explores the possibility of endogenous segmentation in a market where information asymmetry about the quality of goods may result in only low-quality goods trading (lemons problem). I consider a model in which there are multiple ex ante identical submarkets, agents costlessly choose submarkets to join, and exchanges take place in each submarket. In a submarket, each buyer randomly selects a seller and makes a take-it-or-leave-it offer. I demonstrate that a market suffering from the lemons problem can be endogenously segmented and high-quality goods, that cannot trade without segmentation, do trade with segmentation. The results have implications for several applied problems, such as the arrangement of multiple marketplaces or platforms, the informativeness of costless advertisements for experience goods, and the role of non-binding list prices in decentralized markets.
Download or read book Research Methodology in Strategy and Management written by Donald D. Bergh and published by Emerald Group Publishing. This book was released on 2009-05-26 with total page 333 pages. Available in PDF, EPUB and Kindle. Book excerpt: Strategic management relies on an array of complex methods drawn from various allied disciplines to examine how managers attempt to lead their firms toward success. This book discusses about key methodology issues in the strategic management field.
Download or read book Analyzing Strategic Behavior in Business and Economics written by Thomas J. Webster and published by Lexington Books. This book was released on 2014-02-07 with total page 287 pages. Available in PDF, EPUB and Kindle. Book excerpt: This textbook is an introduction to game theory, which is the systematic analysis of decision-making in interactive settings. Game theory can be of great value to business managers. The ability to correctly anticipate countermove by rival firms in competitive and cooperative settings enables managers to make more effective marketing, advertising, pricing, and other business decisions to optimally achieve the firm’s objectives. Game theory does not always accurately predict how rivals will act in strategic situations, but does identify a decision maker’s best response to situations involving move and countermove. As Nobel Prize winner Thomas Shelling noted: “We may wish to understand how participants actually do conduct themselves in conflict situations; an understanding of the ‘correct’ play may give us a bench mark for the study of actual behavior.” The concise and axiomatic approach to the material presented in this textbook is easily accessible to students with a background in the principles of microeconomics and college mathematics. The selection and organizations of topics makes the textbook appropriate for use in a wide range of curricula by students with different backgrounds.
Download or read book Luck written by Chengwei Liu and published by Routledge. This book was released on 2019-11-27 with total page 112 pages. Available in PDF, EPUB and Kindle. Book excerpt: Case studies of business and management success tend to focus on factors such as leadership, innovation, competition, and geography, but what about good fortune? This book highlights luck as a key idea for business and society. The author provides insights from economics, sociology, political science, philosophy, and psychology to create a brief intellectual history of luck. In positioning luck as a key idea in management, the book analyzes various facets of fortune such as randomness, serendipity, and opportunity. Often overlooked given psychological bias toward meritocratic explanations, this book quantifies luck to establish the idea in a more central role in understanding variations in business performance. In bringing the concept of luck in from the periphery, this concise book is a readable overview of management which will help students, scholars, and reflective practitioners see the subject in a new light.
Download or read book Beyond Competitive Advantage written by Todd Zenger and published by Harvard Business Review Press. This book was released on 2016-05-24 with total page 221 pages. Available in PDF, EPUB and Kindle. Book excerpt: A competitive advantage just isn't enough. Your company is turning in regular profits every year, and its market share is only getting bigger. Competitors can’t touch you. So why is your stock price so sluggish? The answer is as simple as it is cruel: investors aren’t interested in history, and they already know you’re profitable and competitive—that knowledge is baked into your stock price. The hard reality is that a competitive advantage just isn’t enough. Investors want companies to surprise them with unexpected value, which means that you can outperform market expectations only if you as a leader know how to find, create, and deliver a series of multiple competitive advantages. This is why a corporate theory is so important. A good corporate theory provides a compass for those at the strategic helm, guiding their decisions about what assets and activities to pursue, what investments to make, and what strategies to adopt. Behind every long-term corporate success story lies a basic theory about how that company creates value. In Beyond Competitive Advantage, strategy professor Todd Zenger describes what makes a great corporate theory and helps readers understand the many tensions and trade-offs they’ll face as they apply the theory to meet the challenge of market expectations. Based on years of research and analysis, Beyond Competitive Advantage provides managers and executives with a framework for both sustaining value and creating growth.
Download or read book Contemporary Strategy Analysis written by Robert M. Grant and published by John Wiley & Sons. This book was released on 2021-11-22 with total page 546 pages. Available in PDF, EPUB and Kindle. Book excerpt: The updated new edition of the market-leading strategic analysis textbook, addressing the emerging challenges that businesses face in an increasingly complex and dynamic environment In Contemporary Strategy Analysis, expert strategist and lecturer Robert M. Grant equips management students and working professionals with the concepts, frameworks, and techniques needed to make better strategic decisions. Designed to be accessible to readers from different backgrounds and with varying levels of experience, this classic textbook combines a rigorous approach to business strategy with real-world examples of current practice and highly relevant case studies personally written by the author. Contemporary Strategy Analysis focuses on the essential tasks of strategy, showing readers how to use the tools of strategy analysis to identify, analyze, and exploit the sources of superior business performance to secure competitive advantage. The eleventh edition examines the role of strategy in a world reshaped by the Covid-19 pandemic and discusses a wide range of trending topics — such as the corporate social responsibility movement and environmental, social, and governance innovation — presented alongside fully integrated business models and up-to-date examples of business model innovation. Perfect for undergraduate and MBA students of business, Contemporary Strategy Analysis has also proven influential with consultants, executives, and others engaged in the strategic direction of a modern enterprise.
Download or read book The Art of Strategy A Game Theorist s Guide to Success in Business and Life written by Avinash K. Dixit and published by W. W. Norton & Company. This book was released on 2010-01-04 with total page 512 pages. Available in PDF, EPUB and Kindle. Book excerpt: “I am hard pressed to think of another book that can match the combination of practical insights and reading enjoyment.”—Steven Levitt Game theory means rigorous strategic thinking. It’s the art of anticipating your opponent’s next moves, knowing full well that your rival is trying to do the same thing to you. Though parts of game theory involve simple common sense, much is counterintuitive, and it can only be mastered by developing a new way of seeing the world. Using a diverse array of rich case studies—from pop culture, TV, movies, sports, politics, and history—the authors show how nearly every business and personal interaction has a game-theory component to it. Mastering game theory will make you more successful in business and life, and this lively book is the key to that mastery.
Download or read book Routledge Handbook of Bounded Rationality written by Riccardo Viale and published by Routledge. This book was released on 2020-12-02 with total page 844 pages. Available in PDF, EPUB and Kindle. Book excerpt: Herbert Simon’s renowned theory of bounded rationality is principally interested in cognitive constraints and environmental factors and influences which prevent people from thinking or behaving according to formal rationality. Simon’s theory has been expanded in numerous directions and taken up by various disciplines with an interest in how humans think and behave. This includes philosophy, psychology, neurocognitive sciences, economics, political science, sociology, management, and organization studies. The Routledge Handbook of Bounded Rationality draws together an international team of leading experts to survey the recent literature and the latest developments in these related fields. The chapters feature entries on key behavioural phenomena, including reasoning, judgement, decision making, uncertainty, risk, heuristics and biases, and fast and frugal heuristics. The text also examines current ideas such as fast and slow thinking, nudge, ecological rationality, evolutionary psychology, embodied cognition, and neurophilosophy. Overall, the volume serves to provide the most complete state-of-the-art collection on bounded rationality available. This book is essential reading for students and scholars of economics, psychology, neurocognitive sciences, political sciences, and philosophy.
Download or read book Contemporary Strategy Analysis and Cases written by Robert M. Grant and published by John Wiley & Sons. This book was released on 2010-04-05 with total page 273 pages. Available in PDF, EPUB and Kindle. Book excerpt: NEW! Combined Text & Cases Version Considered by many to be the best textbook on Strategy, Contemporary Strategy Analysis 7th edition builds on the strengths of previous editions by introducing students to the core concepts and principles of strategy. In this most accessible strategy text, Robert M. Grant combines clarity of exposition with concentration on the fundamentals of value creation and an emphasis on practicality. In this seventh edition, a greater focus on strategy implementation reflects the needs of firms to reconcile scale economies with entrepreneurial flexibility, innovation with cost efficiency, and globalization with local responsiveness. Rob Grant eloquently combines theory with current real world examples and practice using a clearly written, logical and comprehensive style. Contemporary Strategy Analysis 7th edition is suitable for both MBA and advanced undergraduate students. Full teachings notes to the cases will be available upon publication at the companion website www.contemporarystrategyanalysis.com Contemporary Strategy Analysis 7th Edition is also available in a text only version – ISBN: 9780470747100
