1,720,993 research outputs found
Do cultural differences affect the share price puzzle?
Full text linkWe examine the impact of cultural differences on nominal share prices across 63 countries from 2002 to 2018. Using institutional and catering theories, we assess how cultural dimensions—including World Governance Indicators (WGI), legal systems, religious influences, and GLOBE dimensions—affect the spatial heterogeneity of share price levels. Our findings indicate that share prices are higher in countries with common law systems and comprehensive information reporting, as these environments tend to attract institutional investors. Conversely, cultural traits emphasizing altruistic values correspond with lower share prices, reflecting the preferences of individual investors
Incorporating non-academics in academic spin-off entrepreneurial teams: the vertical diversity that can make the difference
Full text linkTo enhance the development of academic spin-offs, surrogate (external) entrepreneurs are often added to the entrepreneurial team comprising academics. Existing research focused on entrepreneurial team diversity (horizontal member differences) and has mixed results. Vertical member differences (i.e., inequality) between academics and non-academics are not addressed. However, strategic decision making is one of the main responsibilities of an entrepreneurial team. Decision-making power, as reflected in ownership, in particular, is thus of the essence. Based on a sample of 164 Italian academic spin-offs, this article investigates the impacts of both horizontal and vertical heterogeneity of entrepreneurial teams on the firms’ performance. The findings confirm that surrogate entrepreneurs generally make a positive contribution to academic spin-off performance but become counter-productive when their presence overpowers that of academics
Artist Names as Human Brands: Brand Determinants, Creation and co-Creation Mechanisms
Full text linkConsidering all transactions related to modern and contemporary visual artists mediated by galleries in Italy between 2007 and 2012, we propose an empirical measure of artist brand and explore its relationship with artist-specific characteristics, such as talent, fame, and popularity, through a structural model. We find that artist brand depends positively on talent, fame, and popularity. Moreover, we find that a co-creation mechanism is at work in the Italian art market, where galleries choose their specialization strategies in picking their artist portfolios. We interpret our findings in light of a novel conceptual framework of human branding and co-creation in the visual art market
Beyond numbers: rethinking host professionalism on Airbnb
Full text linkPurpose: We challenge the conventional approach to distinguish between professional and non-professional Airbnb hosts by solely using the number of managed listings. Design/methodology/approach: We leverage the recently released platform policy that categorizes hosts' professionalism by their self-declared status. Our multinomial modeling approach predicts true host status, factoring in the number of managed listings and controlling for listing and host traits. We employ data from five major European cities collected through scraping the Airbnb webpage. Findings: Our research reveals that relying solely on the number of listings managed falls short of accurately predicting the host type, leading to difficulties in evaluating the platform's impact on the local housing market and reducing the effectiveness of policy intervention. Moreover, we advocate using more fine-grained measures to differentiate further between semi-professional and professional hosts who exhibit heterogeneous economic behaviors. Research limitations/implications: Reliable professionalism metrics are essential to curb unethical practices, promote market transparency and ensure a level playing field for all market participants. Originality/value: This work pioneers the revelation of the inadequacy of a commonly used measure for predicting host professionalism accurately
Do overconfident and over-optimistic entrepreneurs invest too much in their companies? Theory and evidence from Italian SMEs
No full textResearch Summary: Entrepreneurs often invest a large share of their personal wealth in their firms, exposing themselves to idiosyncratic risk. We propose a theoretical model showing how overconfidence and overoptimism may help to explain this evidence. We focus on overprecision, but we also consider overestimation and overplacement. Numerical examples show a more substantial role for overconfidence than overoptimism in determining entrepreneurs' portfolio allocations. We test the effect of the two latent variables—overconfidence and overoptimism—on small business owners' portfolio allocations. We use a unique dataset including private information on Italian small and medium enterprises and a structural equation modeling approach. A positive relationship between overconfidence and entrepreneurs' investments in their own companies is confirmed. Managerial Summary: We propose a theoretical model showing how overconfidence and overoptimism explain the evidence that entrepreneurs invest a large share of their personal wealth in their firms, exposing themselves to specific risk. Overconfidence leads to underestimating risk, while overoptimism to overestimate expected returns. Using numerical examples, we show a more substantial role for overconfidence than overoptimism in determining entrepreneurs' portfolio allocations. Using a unique dataset including private information on Italian small and medium enterprises, we test our model and find a positive relationship between overconfidence and small business owners' investments in their own companies
Security-voting structure and equity financing in the banking sector: ‘one head-one vote’ versus ‘one share-one vote’
No full textUsing a unique dataset including all rights issues of new shares and other equity-like securities announced by Italian listed banks between 1989 and 2014, and exploiting the ideal setting provided by the Italian Banking Law, which allows for listed co-operative banks, we test if the ‘one head-one vote’ principle of co-operative banks and the ‘one share-one vote’ voting system of joint stock banks imply different costs of equity. Our empirical results, obtained using an event-study methodology, regressions and matching estimators, support our research hypothesis that the one head-one vote principle makes it more difficult raising new capital compared to one share-one vote principle, and contribute to the literature on demutualization and cooperative hybrids
Misurare e gestire i rischi per l’impresa
No full textIl contributo presenta criticamente gli aspetti fondamentali di misura e gestione dei rischi aziendali con particolare riferimento al rischio da tasso di cambio e di interesse. Si enfatizza l'importanza della gestione dei rischi alla luce di Basilea 2 con particolare riferimento alle piccole e medie imprese
Market reaction to second-hand news: inside the attention-grabbing hypothesis
No full textThis article investigates whether the market reaction to second-hand information
is due to price pressure or information dissemination. We use the perspective of
attention grabbing to analyse the market reaction to the dissemination of analysts’
recommendations published in print media. This perspective is able to explain the
asymmetric market reaction to ‘buy’ and ‘sell’ advice, which is difficult to
rationalize within the price pressure hypothesis. We base our empirical analysis
on the content of a weekly column in the most important Italian financial newspaper,
which publishes past information and analysts’ recommendations on listed
companies. Our findings show asymmetric price and volume reactions on the
publication day. Contrary to previous evidence, we document a positive relationship
between the number of analysts quoted in the column and the price (volume)
increase associated with positive recommendations. Because the weekly columns
seem to simply attract investors’ attention, with no additional new information,
observing a reaction positively related to the column’s salience (proxied by the
number of quoted analysts) is natural. In addition, we find that the market reaction
is higher when the order size is lower, i.e., when individual investors’ trades
constitute a higher fraction of the total trading activity in the market
The efficiency of the Italian stock exchange: market reaction following changes in recommendations
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