At Columbia Business School, our faculty members are at the forefront of research in their respective fields, offering innovative ideas that directly impact the practice of business today. A quick glance at our publication on faculty research, CBS Insights, will give you a sense of the breadth and immediacy of the insight our professors provide.
As a student at the School, this will greatly enrich your education. In Columbia classrooms, you are at the cutting-edge of industry, studying the practices that others will later adopt and teach. As any business leader will tell you, in a competitive environment, being first puts you at a distinct advantage over your peers. Learn economic development from Ray Fisman, the Lambert Family Professor of Social Enterprise and a rising star in the field, or real estate from Chris Mayer, the Paul Milstein Professor of Real Estate, a renowned expert and frequent commentator on complex housing issues. This way, when you complete your degree, you'll be set up to succeed.
Columbia Business School in conjunction with the Office of the Dean provides its faculty, PhD students, and other research staff with resources and cutting edge tools and technology to help push the boundaries of business research.
Specifically, our goal is to seamlessly help faculty set up and execute their research programs. This includes, but is not limited to:
All these activities help to facilitate and streamline faculty research, and that of the doctoral students working with them.
The article offers the authors' views on expatriate management programs and the benefits from executives interacting with the people and institutions of the host country. The idea that international experience or interaction between foreign managers and local people will help managers become more creative, entrepreneurial, and successful is discussed. The concept of integrative complexity in bi-cultural managers which enhances job performance is mentioned.
The Kidney Case is multi-person exercise that involves the allocation of a single kidney. Students read profiles of eight candidates for the kidney and make a first allocation decision. Each candidate was designed to be high on some allocation principles but low or unknown on others (e.g., best, match, time in cue, age, personal responsibility for disease, future benefits to society, etc.). Then, students are put into groups and assigned to advocate for one of the candidates. Each group will prepare and give a 3-minute presentation on why their candidate should receive the kidney.
Emissions abatement alone cannot address the consequences of global warming for weather disasters. We model how society adapts to manage disaster risks to capital stock. Optimal adaptation — a mix of firm-level efforts and public spending — varies as society learns about the adverse consequences of global warming for disaster arrivals. Taxes on capital are needed alongside those on carbon to achieve the first best.
What are the sources of the returns to education? We study the allocation of higher education graduates from public institutions in Ohio across firms. We present three results. First, we confirm findings in the earlier literature of large pay differences across degrees. Second, we show that up to one quarter of pay premiums for higher degrees are explained by between-firm pay differences. Third, higher education degrees are associated with greater representation at the best-paying firms.
This article focuses on the role of threats in negotiations. Broadly speaking, a threat is a proposition that issues demands and warns of the costs of noncompliance. Even if neither party resorts to them, potential threats shadow most negotiations. Researchers have found that people actually evaluate their counterparts more favorably when they combine promises with threats rather than extend promises alone. Whereas promises encourage exploitation, the threat of punishment motivates cooperation.
We propose a simple approach to dynamic multi-period portfolio choice with quadratic transaction costs. The approach is tractable in settings with a large number of securities, realistic return dynamics with multiple risk factors, many predictor variables, and stochastic volatility. We obtain a closed-form solution for a trading rule that is optimal if the problem is restricted to a broad class of strategies we define as "linearity generating strategies" (LGS).
Despite a 20-year trend toward integrated marketing communications, advertisers seldom coordinate television and search advertising campaigns. We find that television advertising for financial services brands increases both the number of related Google searches and searchers' tendency to use branded keywords in place of generic keywords. The elasticity of a brand's total searches with respect to its TV advertising is 0.17, an effect that peaks in the morning.
The current research establishes a first-mover disadvantage in negotiation. We propose that making the first offer in a negotiation will backfire when the sender reveals private information that an astute recipient can leverage to his or her advantage. In two experiments, we manipulated whether the first offer was purely distributive or revealed that the sender's preferences were compatible with the recipient's preferences (i.e., the negotiators wanted the same outcome on an issue).
We propose a framework for the joint study of the consumer's decision of where to buy and what to buy. The framework is rooted in utility theory where the utility is for a particular channel/brand combination. The framework contains firm actions, the consumer search process, the choice process, and consumer learning. We develop research questions within each of these areas. We then discuss methodological issues pertaining to the use of experimentation and econometrics.
We investigate the consequences of the "revolving door" for trial lawyers at the SEC's enforcement division. If future job opportunities motivate SEC lawyers to develop and/or showcase their enforcement expertise, then the revolving door phenomenon will promote more aggressive regulatory activity (the "human capital" hypothesis). In contrast, SEC lawyers can relax enforcement efforts in order to develop networking skills and/or curry favor with prospective employers at private law firms (the "rent seeking" hypothesis).
This paper proposes an accounting framework that breaks up a country's gross exports into various value-added components by source and additional double-counted terms. Our parsimonious framework bridges a gap between official trade statistics (in gross value terms) and national accounts (in value-added terms), and integrates all previous measures of vertical specialization and value-added trade in the literature into a unified framework.
This paper lays out alternative valuation models and evaluates their features. Three themes underlie the discussion. First, we require that the models be consistent with the theory of finance. Second, valuation involves accounting, so accounting theory as well as finance theory comes into play. Third, valuation models are a tool for practical valuation, so the respective models are judged on how they perform or do not perform (as a practical matter), with the emphasis is on caveat emptor.
Recent findings of low societal consensus in cultural values suggest that our field’s dominant paradigm — culture as shared values — is a fallacy. The perennial persistence of this illusion may come from the fact that it appeals to the human brain’s hardwired capacity for essentialism. Evidence against value consensus, however, does not doom all shared-meaning models of culture (pace Schwartz, 2013).
Following the classic work of Mitjuschin, Polterovich and Milleron, necessary and sufficient as well as sufficient conditions have been developed for when the multicommodity Law of Demand holds. However, far less attention has been focused on the nature and properties of violations. To address these questions, the existing sufficient conditions although simpler in form are of little value unless they are also necessary. We show when the widely cited Mitjuschin and Poterovich sufficient condition also becomes necessary.
Learning requires acquiring and using knowledge. How do individuals acquire knowledge of another culture? How do they use this knowledge in order to operate proficiently in a new cultural setting? What kinds of training would foster intercultural learning? These questions have been addressed in many literatures of applied and basic research, featuring disparate concepts, methods and measures. In this paper, we review the insights from these different literatures. We note parallels among findings of survey research on immigrants, expatriate managers, and exchange students.
Risk free asset demand in the classic portfolio problem is shown to decrease with income if and only if the consumer's uncertainty preferences over assets satisfy the preference condition that the risk free asset is more readily substituted for the risky asset as the quantity of the latter increases. In this case, the risky asset is said to be "urgently needed" following the terminology of the classic certainty analysis of Johnson (1913). The urgently needed property tends to be more readily satisfied in uncertainty versus certainty settings.
The article describes the potential negative consequences of the courses about academia, and especially the danger of weakening research and the innovation system of research universities. The MOOC courses may disrupt the structure of higher education because their business model is effective in de-linking the three components of an active University: teaching, research, and approval of credit for degree-granting courses. In the end, the article offers universities several ways to deal with the negative consequences of these MOOC courses.
Rarely need one justify a topic as much as online entertainment for Africa. There is a lot of headshaking and muttering that it is not really important for Africans to watch TV shows on the Internet and that in any event their basic networks are too far behind to make this a realistic issue.
We study a scenario in which a firm designs the compensation contract for a salesperson who exerts unobservable effort to increase the level of uncertain demand and, jointly, the firm also decides the inventory level to be stocked. We use a newsvendor-type model in which actual sales depend on the realized demand but are limited by the inventory available, and unfulfilled demand cannot be observed. In this setup, under the optimal contract, the agent is paid a bonus for meeting a sales quota.
This paper presents a framework for addressing normative accounting issues for reporting to shareholders. The framework is an alternative to the emerging Conceptual Framework of the International Accounting Standards Board and the Financial Accounting Standards Board. The framework can be broadly characterized as a utilitarian approach to accounting standard setting. It has two main features. First, accounting is linked to valuation models under which shareholders use accounting information to values their stakes.
Over-the-counter (OTC) stocks are far less liquid, disclose less information, and exhibit lower institutional holdings than listed stocks. We exploit these different market conditions to test theories of cross-sectional return premiums. Compared to premiums in listed markets, the OTC illiquidity premium is several times higher, the size, value, and volatility premiums are similar, and the momentum premium is three times lower.
We present a model of the maturity of a bank's uninsured debt. The bank borrows funds and chooses afterwards the riskiness of its assets. This moral hazard problem leads to an excessive level of risk. Short-term debt may have a disciplining effect on the bank's risk-shifting incentives, but it may lead to inefficient liquidation. We characterize the conditions under which short-term and long-term debt are feasible, and show circumstances under which only short-term debt is feasible and under which short-term debt dominates long-term debt when both are feasible.
Historical cost accounting deals with uncertainty by deferring the recognition of earnings until the uncertainty has largely been resolved. Such accounting affects both earnings and book value and produces expected earnings growth deemed to be at risk. This paper shows that the earnings-to-price and book-to-price ratios that are the product of this accounting forecast both earnings growth and the risk to that growth.
What is a good banker? What is the economic value added of banks? The economics literature on financial intermediation focuses on the role of banks as deposit-taking institutions and as delegated monitors of borrowers. But this description barely begins to represent what banks do in a modern economy. Besides commercial lending, large banks are engaged in a number of other activities ranging from cash management, trade credit, swaps and derivatives trading and underwriting of securities.
It has been observed that ad-evoked feelings exert a positive influence on brand attitudes. To investigate the empirical generalizability of this phenomenon, we analyzed the responses of 1,576 consumers to 1,070 TV commercials from more than 150 different product categories. The findings suggest five empirical generalizations. First, ad-evoked feelings indeed have a substantial impact on brand evaluations, even under conditions that better approximate real marketplace settings than past studies did.
We review the burgeoning political economy literature on the influence of mass media on politics and policy. This survey, which covers both theory and empirics, is organized along four main themes: transparency, capture, informative coverage, and ideological bias. We distill some general lessons and identify some open questions.
We propose that the psychological states individuals bring into newly formed groups can produce meaningful differences in status attainment. Three experiments explored whether experimentally created approach-oriented mindsets affected status attainment in groups, both immediately and over time. We predicted that approach-oriented states would lead to greater status attainment by increasing proactive behavior.
In transitions from state socialism, property rights are re-allocated to organizations and groups, creating new markets and new forms of economic enterprise that reshape the stratification order. A generation of research has estimated individual-level outcomes with income equations and mobility models, relying on broad assumptions about economic change. We redirect attention to the process of economic change that structures emerging markets.
Previous research suggests that there is a fundamental link between expansive body postures and feelings of power. The current research demonstrates that this link is not universal, but depends on people's cultural background (Western versus East Asian) and on the particular type of expansive posture enacted. Three types of expansive postures were examined in the present studies: the expansive-hands-spread-on-desk pose (Carney et al., 2010), the expansive-upright-sitting pose, and the expansive-feet-on-desk pose (Carney et al., 2010).
How likely is a catastrophic event that would substantially reduce the capital stock, GDP, and wealth? How much should society be willing to pay to reduce the probability or impact of a catastrophe? We answer these questions and provide a framework for policy analysis using a general equilibrium model of production, capital accumulation, and household preferences.
Hedge fund managers trade o the benefits of leveraging on the alpha-generating strategy against the costs of inefficient fund liquidation. In contrast to the standard risk-seeking intuition, even with a constant-return-to-scale alpha-generating strategy, a risk-neutral manager becomes endogenously risk-averse and decreases leverage following poor performance to increase the fund's survival likelihood. Our calibration suggests that management fees are the majority of the total compensation.
In this study of the impact of protests against Walmart (a first entrant) on Target (a second entrant) from 1998 to 2008 in U.S. geographic markets, we develop and test a theory of information spillovers from protests against corporations proposing to enter a new market. We argue that the number of protests directed against a first entrant is a noisy signal for the second entrant because such protests are likely to be dominated by protest-prone activists and so do not reflect the sentiments of the community.
If individuals buy a Snickers bar and subsequently see their favorite basketball team begin to play better, they might attribute this improved performance to their purchase decision. Even as consumers acknowledge that this type of control is irrational, we demonstrate that they are willing to superstitiously alter their purchase behavior (by choosing a less-preferred option) in hopes of helping their favorite team.
Perspective taking is often the glue that binds people together. However, we propose that in competitive contexts, perspective taking is akin to adding gasoline to a fire: It inflames already-aroused competitive impulses and leads people to protect themselves from the potentially insidious actions of their competitors. Overall, we suggest that perspective taking functions as a relational amplifier.
I examine the relationship across diseases between the long-run growth in the number of publications about a disease and the change in the age-adjusted mortality rate from the disease. The diseases analyzed are almost all the different forms of cancer, i.e. cancer at different sites in the body (lung, colon, breast, etc.). Time-series data on the number of publications pertaining to each cancer site were obtained from PubMed. For articles published since 1975, it is possible to distinguish between publications indicating and not indicating any research funding support.
We present a theoretical model of reappropriation — taking possession of a slur previously used exclusively by dominant groups to reinforce another group's lesser status. Ten experiments tested this model and established a reciprocal relationship between power and self-labeling with a derogatory group term. We first investigated precursors to self-labeling: Group, but not individual, power increased participants' willingness to label themselves with a derogatory term for their group. We then examined the consequences of such self-labeling for both the self and observers.
Consumer psychology faces serious issues of internal and external relevance. Most of these issues originate in seven fundamental problems with the way consumer psychologists plan and conduct their research that could be called the seven sins of consumer psychology.
For generations, the Pritzkers, one of the wealthiest and most philanthropic families in the United States, primarily managed their assets in order to enrich the family as a whole, as opposed to generating wealth for individual family members. The Pritzkers were historically publicity shy, but their saga gained much media attention in the early 2000s when some family members questioned the asset distribution and leadership requests of their forefathers.