E. Lucien Cox

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We use a well-developed dynamic panel generalized method of moments (GMM) estimator to alleviate endogeneity concerns in two aspects of corporate governance research: the effect of board structure on firm performance and the determinants of board structure. The estimator incorporates the dynamic nature of internal governance choices to provide valid and(More)
Although the resource-based view (RBV) is one of the most popular and fruitful areas of strategy research, it often perplexes scholars from other disciplines. Also, it is unclear whether strategy scholars themselves agree on the RBV’s basic issues and premises. To clarify the contribution of the RBV, in this paper we elaborate its basic tenets and relate(More)
We examine interactions between financing and investment decisions in a setting where equityholders make self-interested investment decisions. The firm has the flexibility to exercise and reverse the exercise of a growth option whose underlying asset may be correlated with assets-in-place. The firm’s menu of financing decisions includes the choice of debt(More)
Grocery retailers increasingly view other retail formats, particularly mass merchandisers, as a competitive threat. We present an empirical study of household shopping and packaged goods spending across retail formats — grocery stores, mass merchandisers, and drug stores. Our study considers competition between these formats and explores how retailer(More)
Although recent studies provide convincing evidence that firms manage earnings to achieve certain reporting objectives, there is still little evidence on what steps firms take to manage their earnings. This paper presents evidence as to which components firms use in order to manage bottom-line, reported earnings. Specifically, we identify a set of firms(More)
We construct a contingent claims model of the firm to examine interactions between investment and financing decisions in a setting where equityholders make self-interested investment decisions. The key feature of the model is the separate, but possibly correlated stochastic processes for the firm’s assets-in-place and the asset underlying a growth option.(More)
This paper suggests a new way of predicting the likelihood of a corporate bond being callable. We compute the probability that a bond, if callable, would actually be called within a certain period. We also hypothesize a positive relationship between this probability and the likelihood of the bond being issued with a call feature. Comparative static results(More)
We examine the impact of stockholder-bondholder conflicts over the exercise decision of a firm’s investment option on corporate financing decisions. We find that an equity-maximizing firm exercises the option too early relative to a valuemaximizing strategy, and we show how this problem can be characterized as one of overinvestment in risky investment(More)
We consider the impact of sequential investment and active management on the value of a portfolio of real options. The options are assumed to be interdependent, in that exercise of any one is assumed to produce, in addition to some intrinsic value based on an underlying asset, further information regarding the values of other options based on related(More)