Research Seminars

Article TBD

Accounting & Management Control

Speaker: Rick Mergenthaler
The University of Iowa

20 November 2015 - HEC Campus - From 2:00 pm to 4:00 pm


Article TBD

Accounting & Management Control

Speaker: Yves GENDRON
Laval

29 October 2015 - From 2:00 pm to 4:00 pm


Analyst use of corporate toxic emissions data to assess firm’s future financial performance: an empirical analysis

Accounting & Management Control

Speaker: Yue LI
Rotman School of Management, University of Toronto, Toronto, Canada

19 June 2015 - Room S126 - From 2:00 pm to 4:00 pm


This study examines financial analysts’ use of non-financial, non-corporate disclosure environmental performance information to assess firms’ future earnings and financial prospect. Specifically, we examine analyst reactions to annual release of the Toxics Release Inventory (TRI) data by the U.S. Environmental Protection Agency (EPA). We hypothesize that analysts use the TRI data to assess corporate environmental risks and impound such risks into their stock recommendations and earnings forecasts. Using a large sample of U.S. public companies from 1997 to 2011, we find that increased environmental risk exposure is associated with lower accuracy and higher dispersion in analyst earnings forecasts. We also find that analysts are more likely to revise their stock recommendations and earnings forecasts of a firm downward if the firm experiences an increase in their environmental risk exposures, and vice versa. In addition, we find evidence that analyst revisions in stock recommendations following the TRI release favourably impact firm’s future pollution reduction, consistent with analyst actions motivating firms to improve future environmental performance. Overall, the findings are consistent with analysts using non-financial, not-corporate disclosure environmental performance information to assess corporate environmental risk exposure and shed light on the mechanism through which corporate environmental risks are impounded into the stock prices.

Readmission analytics - Care transformation through information technology

Operations Management & Information Technology

Speaker: Mohan Tanniru, Ph.D
Professor , Oakland University

16 June 2015 - HEC Jouy-en-Josas Campus - Building V Council room - From 2:30 pm to 4:00 pm


Health care providers are facing multiple challenges such as improving patient satisfaction, operating with reduced reimbursements, and reducing frequent readmissions. Care providers who address these challenges independently often miss out on opportunities that surface when patient care is viewed within a system, influenced by two environments: clinical environment within the hospital and social environment of patients post-discharge. While hospitals strive for greater efficiencies within the clinical environment, they often find coordination post-discharge to reduce readmissions a major challenge. By viewing the system of patient care through the readmission lens and applying some of the templates discussed under Systematic Inventive Thinking: SIT2 (Inside the Box), this presentation looks at several innovative approaches that can help address patient care both inside and outside the hospital walls by leveraging advances in information technology. Several on-going research projects of care transformation through IT will be highlighted including on-going work of patient care at St Joseph Mercy Hospital in Pontiac, MI and peri-operative care in Stanford Medical School (inside the hospitals), and patient empowerment studies at dialysis centers (DaVita) and medication reconciliation/patient follow-up at nursing homes (outside the hospital).

Emergent Phenomena and Process Dynamics: The Next Frontier for Team Research

Management & Human Resources

Speaker: Steve W. J. KOZLOWSKI
Michigan State University USA

12 June 2015 - R09 - Building S - From 1:30 pm to 3:00 pm


Emergence has received relatively limited direct research attention in the micro and meso disciplines of organizational science (i.e., organizational psychology, organizational behavior, and human resource management). It has largely been treated as latent and assumed, assessed within a limited conceptualization, and examined in a static fashion. This is part of a broader problem in organizational psychology and behavior research (OP/B) that treats team (and other) processes as static constructs. I will discuss emergence as a multilevel process and focus on its point of origin, interaction patterns, and the dynamics of how phenomena emerge. I will discuss how emergent phenomena are typically studied in organizational science and the limitations inherent in the dominant approaches. Once emerged, team processes also exhibit dynamics with respect to the stability of the emerged phenomenon, the form of emergence, and variability in its level. Given these conceptual complexities, investigating emergence is challenging and necessitates new methodologies. I will discuss innovations in research design and measurement that are required to advance understanding of emergence as a process and team processes as dynamic phenomena. I will present some novel approaches and will illustrate them by highlighting my current research.

Background Readings (for those who may be interested)

Cronin, M. A., Weingart, L. R., & Todorova, G. (2011). Dynamics in groups: Are we there yet? The Academy of Management Annals, 5, 571-612.

Kozlowski, S. W. J., & Chao, G. T. (2012). The dynamics of emergence: Cognition and cohesion in work teams. Managerial and Decision Economics, 33, 335-354.

Kozlowski, S. W. J., Chao, G. T., Grand, J. A., Braun, M. T., & Kuljanin, G. (2013). Advancing multilevel research design: Capturing the dynamics of emergence. Organizational Research Methods, 16, 581-615.

Kozlowski, S. W. J., & Klein, K. J. (2000). A multilevel approach to theory and research in organizations: Contextual, temporal, and emergent processes. In K. J. Klein & S. W. J. Kozlowski (Eds.), Multilevel theory, research and methods in organizations: Foundations, extensions, and new directions (pp. 3-90). San Francisco, CA: Jossey-Bass.

Marks, M. A., Mathieu, J. E., & Zaccaro, S. J. (2001). A temporally based framework and taxonomy of team processes. Academy of Management Review, 26, 356-376.

Do Banks Pass Through Credit Expansions? The Targeting Problem of Bank-Mediated Stimulatory Policy

Finance

Speaker: Johannes Stroebel
New York University

11 June 2015


The effectiveness of bank-mediated stimulatory policy in raising household borrowing depends on the extent to which banks pass through credit expansions to households with a high marginal propensity to borrow (MPB). We use a panel dataset of 160 million credit card accounts and over 1,000 credit limit regression discontinuities to estimate MPB for households with different credit scores. We find substantial heterogeneity, with a $1 increase in credit limits raising total unsecured borrowing after 12 months by 54 cents for households with the lowest FICO scores (<660) versus 3 cents for households with the highest FICO scores (≥ 740). We use the same credit limit regression discontinuities to estimate banks’ marginal propensity to lend (MPL) out of a decrease in the cost of funds. For the lowest FICO score households, increased credit limits raise default rates and reduce marginal fee revenue, limiting pass-through. We estimate that a 1- percentage point reduction in the cost of funds increases credit limits by $249 for borrowers with the lowest FICO scores (< 660) versus $959 for households with the highest FICO scores (≥ 740). We conclude that banks have the least incentive to pass-through credit to households that want to borrow the most, diminishing the effectiveness of bank-mediated stimulatory policy.

Corn or Soybean: Dynamic Farmland Allocation under Uncertainty

Operations Management & Information Technology

Speaker: Onur BOYABATLI
Assistant Professor , Singapore Management University

5 June 2015 - HEC Paris - Jouy en Josas Campus - Building S - Room 227 - From 10:30 am to 12:00 pm


This paper studies the farmland allocation decision of a farmer between two crops in a multi-period framework. In each growing period, the farmer chooses the allocation in the presence of revenue uncertainty, and crop rotation benefits across periods, i.e. revenue is stochastically larger when a crop is planted in a rotated land (where the other crop was planted in the previous period). We identify two strategies, monoculture, i.e. fully allocate the farmland to one of the crops, and rotate, i.e. plant each crop in the rotated farmland, which characterize the optimal allocation decision in each period. Our analysis provides rules of thumb for the impact of revenue uncertainty: The farmer benefits from a lower revenue correlation between the two crops. Interestingly, the farmer benefits from a higher revenue volatility only when this volatility is sufficiently high; otherwise, a lower revenue volatility increases the profitability. We propose a heuristic allocation policy which we characterize in closed form. Using a calibration based on a representative farmer planting corn and soybean in Iowa, we show that the proposed policy is near-optimal, and significantly outperforms the commonly used heuristic allocation policies in practice (such as the myopic policy, always-rotate policy and monoculture policy).

Independent Boards and Innovation

Finance

Speaker: Gustavo Manso
Berkeley

4 June 2015


Much research has suggested that independent boards of directors are more effective in reducing agency costs and improving firm governance. Less clear, however, is how independent boards influence innovation search strategies. Relying on regulatory changes that required shareholders to appoint a majority of independent directors, we demonstrate that firms that transition to independent boards are less likely to explore uncrowded and unfamiliar technologies. Such firms patent more and get more citations to their patents, though the increase comes mainly from patents in the middle of the citation distribution; the numbers of uncited and highly cited patents do not change significantly

Thought Leaders in Customer Engagement and Customer Relationship Management Conference

Marketing

3 June 2015 - Eurosites George V, Paris


HEC Paris is happy to welcome you to the Thought Leaders in Customer Engagement and Customer Relationship Management Conference. This event is organized in conjunction with the Marketing Science Institute and Journal of the Academy of Marketing Science special issue on Understanding and Managing Customer Engagement Using Customer Relationship Management (CRM).

Measuring the effectiveness of mobile marketing

Operations Management & Information Technology

Speaker: Anindya Ghose
Professor of Information, Operations and Management Sciences and Professor of Marketing , New York University's Leonard N. Stern School of Business

3 June 2015 - HEC - Jouy-en-Josas Campus - Building V - Council Room - From 11:00 am to 12:00 pm


The explosive growth of smartphone and location-based services (LBS) has contributed to the rise of mobile advertising. In this talk, we will present results from multiple studies in Europe and Asia that are designed to measure the effectiveness of mobile marketing promotions. In the first randomized field experiment, using data from a location-based app for smartphones, we measure the effectiveness of mobile coupons. The aim is to analyze the causal impact of geographical distance between a user and retail store, the display rank, and coupon discounts on consumers’ response to mobile coupons. In a second large scale field study where we exploit a quasi-natural experiment we examine the role of contextual crowdedness on the redemption rates of mobile coupons. We find that people become increasingly engaged with their mobile devices as trains get more crowded, and in turn become more likely to respond to targeted mobile messages. The study results were consistent across peak and off-peak times, and on weekdays and weekends. The change in behavior can be accounted for by the phenomenon of “mobile immersion”: to psychologically cope with the loss of personal space in crowded trains and to avoid accidental gazes, commuters can escape into their personal mobile space. In turn, they become more involved with targeted mobile messages they receive, and, consequently, are more likely to make a purchase in crowded trains. These studies causally show that mobile advertisements based on real-time static geographical location and contextual information can significantly increase consumers’ likelihood of redeeming a geo-targeted mobile coupon. However, beyond the location and contextual information, the overall mobile trajectory of each individual consumer can provide even richer information about consumer preferences. In the third study, we propose a new mobile advertising strategy that leverages full information on consumers’ offline moving trajectories. To examine the effectiveness of this new mobile trajectory-based advertising strategy, we designed a large-scale randomized field experiment in one of the largest shopping malls in the world. We find that mobile trajectory-based advertising can lead to highest redemption probability, fastest redemption behavior, and highest transaction amount from customers at the focal advertising store as well as in the shopping mall. Our studies help firms better understand the question of which kinds of mobile advertising are most effective and how machine learning techniques can be combined with statistical models and field experiments to offer the right product to the right audience at the right time on the right channel.