Columbia Business School Research

Business collective action (BCA) has long been a topic of interest to management scholars. However, our theoretical understanding of this important phenomenon has been hindered by its fragmented development in the literature. To address this shortcoming, we conduct a comprehensive review of BCA across a wide range of disciplines in management including corporate political activity, private regulation, strategic management, and organizational institutionalism.

A growing body of research has revealed that firms leverage nationalism in their strategies. However, it is unclear why some firms are more likely to do so than others. This paper uses institutional theory to address this question and examines the influences of domestic and foreign customers. We study firms’ responses to nationalist movements, a type of sociopolitical mobilization arising in response to international controversies.

Firms increasingly delegate job screening to third-party recruiters, who must not only satisfy employers' demand for different types of candidates, but also manage yield by anticipating candidates' likelihood of accepting offers. We study how recruiters balance these objectives in a novel, two-sided field experiment. Our results suggest that candidates' behavior towards employers is very correlated, but that employers' hiring behavior is more idiosyncratic.

We study optimal workforce and contract design for a firm that employs a team of two agents. The agents have possibly diverse demographic characteristics captured by their discount factors. We also study optimal team design for four agents with given discount factors—two with low discount factors and two with high discount factors—who are to be assigned to two teams and identify conditions under which diverse assignment is optimal.

This research tests a solution for consumers to recover faster from negative experiences. We identify this solution by examining how the manner in which review writers express their emotions and rational thoughts in their reviews causally influences review writers.

Investment funds that claim to focus on socially responsible stocks have proliferated in recent times. In this paper, we verify whether ESG mutual funds actually invest in firms that have stakeholder-friendly track records. Using a comprehensive sample of self-labelled ESG mutual funds (as identified by Morningstar) in the United States from 2010 to 2018, we find that these funds hold portfolio firms with worse track records for compliance with labor and environmental laws, relative to portfolio firms held by non-ESG funds managed by the same financial institutions in the same years.

We show theoretically that a critical determinant of the attractiveness of VC-backed entrepreneurship for high-earning potential founders is the expected time to develop a startup’s initial product. This is because founder-CEOs’ cash compensation increases substantially after product development, alleviating the non-diversifiable risk that founders face at startup birth.

Women are unequally represented in the highest positions in society. Beyond discrimination and bias, women are missing from the top because they are less likely to pursue high-ranking opportunities. We propose that experience is a critical moderator of gender differences in pursuing leadership opportunities, with low-experience women being particularly unlikely to seek higher-level positions. Field analyses of 96 years of U.S. Senator and Governor elections examined male and female politicians’ propensity to run for higher political offices.

In this paper, I estimate the magnitude of an informational friction limiting credit reallocation to firms during the 2007 to 2009 financial crisis. Because lenders rely on private information when deciding which relationship to end, borrowers looking for a new lender are adversely selected. I show how to separately identify private information from information common to all lenders but unobservable to the econometrician by using bank shocks within a discrete choice model of relationships.

We decompose long-term nominal bond yields into real and inflation components in an international context using inflation-linked and nominal bonds. In contrast to extant results, real rate variation dominates the variation in inflation-linked and nominal yields. Cross-country nominal and inflation-linked yield correlations have declined since the Great Recession. Real rates are the main source of the correlation between nominal yields. Our results are robust to various alternative measurements of inflation expectations and the liquidity premium.

We use discounted cash flow analysis to measure the projected fiscal capacity of the U.S. federal government. We apply our valuation method to the CBO’s projections for the U.S. federal government’s primary deficits between 2022 and 2052 and projected debt outstanding in 2052. The discount rate for projected cash flows and future debt must include a GDP or market risk premium in recognition of the risk associated with future surpluses. Despite current low interest rates, we find that U.S. fiscal capacity is more limited than commonly thought.

We study the competitive provision and endogenous acquisition of political information. Our main result identifies a natural equilibrium channel through which a more competitive market decreases the efficiency of policy outcomes. A critical insight we put forward is that competition among information providers leads to informational specialization: firms provide relatively less information on issues that are of common interest and relatively more information on issues on which agents’ preferences are heterogeneous.

Supervisors are usually older, more educated, and longer tenured than their subordinates, a situation known as status congruence. However, subordinates are increasingly experiencing status incongruence, in which their supervisors lack these traditional status markers. We examine how status congruence versus incongruence interacts with subordinates’ judgments of their supervisors’ competence to influence subordinates’ perceptions of the promotion system.

Information provision in games influences behavior by affecting agents' beliefs about the state, as well as their higher-order beliefs. We first characterize the extent to which a designer can manipulate agents' beliefs by disclosing information. We then describe the structure of optimal belief distributions, including a concave-envelope representation that subsumes the single-agent result of Kamenica and Gentzkow (2011). This result holds under various solution concepts and outcome selection rules.

We consider a portfolio selection problem for an investor who consumes at the end of a finite horizon. With important qualifications on the sufficiency part, we show that convergence of the optimal investment policy as the horizon becomes distant occurs if and only if the corresponding Arrow-Pratt coefficient of relative risk aversion converges as wealth increases. A major step in the proof shows that convergence of the Arrow-Pratt coefficient of relative risk aversion is equivalent to regular variation of the marginal utility function.

Economic frictions pervade the founding, financing, growing, and exiting of high-growth entrepreneurial firms. This chapter considers one friction that currently affects a small, but important, set of entrepreneurs: racial and gender discrimination. I first collect facts from a large empirical literature that show clear gender and race gaps in participation and financing of startups. Female founders manage 16-25% of all startups, while Black entrepreneurs rarely exceed 3% of the startup population.

We study the role of commitment in communication and its interactions with rules, which determine whether information is verifiable. Our framework nests models of cheap talk, information disclosure, and Bayesian persuasion. It predicts that commitment has opposite effects on information transmission under the two alternative rules. We leverage these contrasting forces to experimentally establish that subjects react to commitment in line with the main qualitative implications of the theory. Quantitatively, not all subjects behave as predicted.

We provide evidence that in certain contexts, firms set upward-striving goals and that this upward striving yields significant performance and visibility benefits. We develop a model of variable attention in which, as firms’ performance levels approach cognitively salient round numbers, managers strategically shift their focus from easier-to-reach goals based on historical and social reference points to more challenging goals that provide external visibility and capital market benefits.

Evaluations play a critical role in the allocation of resources and opportunities.
Although evaluation systems are a cornerstone of organizational and market
processes, they often reinforce social and economic inequalities. The body of
organizational research on inequality and evaluations is extensive, but it is also
fragmented, siloed within specific contexts and types of evaluations (e.g., hiring,
performance). As a result, we currently lack a systemic understanding of the
conditions under which inequalities emerge. This paper provides a unifying

From Netflix to Spotify to TikTok, consumers’ entertainment experiences increasingly revolve around personalized content. Does consuming personalized content in a specific entertainment domain influence the likelihood of consumers discussing that domain overall, beyond the specific content they engage with? Across eleven experiments, we investigate the impact of personalized content in the music and short-form video domains (i.e., content that feels tailored to one’s tastes) on the intent to discuss domain-related topics. We find that the impact of consuming personalized content (vs.

New laws aim to reduce inequality by limiting the information employers can seek. Although employers are forbidden from seeking certain information, workers are free to disclose voluntarily. A large survey of the US workforce shows that men are more likely to disclose their salaries unprompted, particularly when they believe that other candidates are volunteering. Women report higher disclosure costs (particularly non-pecuniary psychological or cultural costs), and are more likely to resist disclosing (even if others disclose).

Widespread narratives about leadership often emphasize the importance of exhibiting agentic traits like assertiveness, ambition, and confidence. Counter to this perspective, the present research suggests that when evaluating leaders, followers especially value communal traits, such as honesty, open-mindedness, and compassion—even at the expense of agentic traits. Eight preregistered studies reveal that people describe their ideal leader as more communal than the typical leader, representing a divide between preferred versus prototypical leaders.

The equity variance risk premium is the expected compensation earned for selling variance risk in equity markets. The variance risk premium is positive and shows only moderate persistence. High variance risk premiums coincide with the left tail of the consumption growth distribution shifting down. These facts, together with risk neutral skewness being substantially more negative than physical return skewness, refute the bulk of the extant consumption-based asset pricing models. We introduce a tractable habit model that does fit the data.