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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)
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 thank Peter MacKay, Rex Thompson and seminar participants at the University of Texas at Dallas for many helpful comments and suggestions. Abstract 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(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)
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)
We examine how intra-industry variation in financial structure relates to industry factors and whether real and financial decisions are jointly determined within competitive industries. We find that industry and group factors beyond standard industry fixed effects are also important to firm financial structure. Firm financial leverage, capital intensity,(More)