Working papers are in draft form. This working paper is distributed for purposes of comment and discussion only. It may not be reproduced without permission of the copyright holder. Copies of working papers are available from the author. Organizational Designs and Innovation Streams Michael Tushman*

on the main Jewish center in the city of Buenos Aires, Argentina, in July 1994, all Jewish and Muslim institutions (including schools, synagogues, mosques and clubs) were given 24-hour police surveillance. Thus, this hideous event induced a geographical allocation of police forces that can be presumed

The thesis examines the evolution of mobile transceiver architecture using the management framework pioneered by Carliss Baldwin and Kim Clark. The thesis begins with an introduction and an overview of the wireless communication value network. The author subsequently distills the salient aspects of the Baldwin and Clark management framework predicated on bottleneck analysis, modularity, and return on invested capital. The prominence of bottleneck analysis motivates a technical chapter that summarizes the bottlenecks relevant to all wireless communication systems, namely data rate, error rate, and battery life. A brief chapter discussing the dominant wireless communication network architecture, TDMA and CDMA, corroborates the bottleneck analysis and effectively assigns the error rate and battery life bottlenecks to the handset ODM and supplier layers of the value network. With a clear vision of the competitive bottlenecks, the evolution of transceiver architecture is presented in the context of the aforementioned management framework. Through this analysis, design power is shown to have passed from handset ODMs to

Many investors purchase mutual funds through intermediated channels, paying brokers or financial advisors for fund selection and advice. This article attempts to quantify the benefits that investors enjoy in exchange for the costs of these services. We study broker-sold and direct-sold funds from 1996 to 2004, and fail to find that brokers deliver substantial tangible benefits. Relative to direct-sold funds, broker-sold funds deliver lower risk-adjusted returns, even before subtracting distribution costs. These results hold across fund objectives, with the exception of foreign equity funds. Further, broker-sold funds exhibit no more skill at aggregate-level asset allocation than do funds sold through the direct channel. Our results are consistent with two hypotheses: that brokers deliver substantial intangible benefits that we do not observe and that there are material conflicts of interest between brokers and their clients. (JEL G2, G11, G24) 1.

We develop a novel methodology to infer the amount of capital allocated to quantitative equity arbitrage strategies. Using this methodology, which exploits time-variation in the cross section of short interest, we document that the amount of capital devoted to value and momentum strategies has grown significantly since the late 1980s. We provide evidence that this increase in capital has resulted in lower strategy returns. However, consistent with theories of limited arbitrage, we show that strategy-level capital flows are influenced by past strategy returns, strategy return volatility, and that arbitrage capital is most limited during times when strategies perform best. This suggests that the growth of arbitrage capital may not completely eliminate returns to these strategies.

Abstract: This study examines whether mandatory adoption of International Financial Reporting Standards (IFRS) leads to capital market benefits through enhanced financial statement comparability. UK domestic standards are considered very similar to IFRS (Bae et al. 2008), suggesting any capital market benefits observed for UK-domiciled firms are more likely attributable to improvements in comparability (i.e., better precision of across-firm information) than to changes in information quality specific to the firm (i.e., core information quality). If IFRS adoption improves financial statement comparability, we predict this should reduce insiders ’ ability to benefit from private information. Consistent with these expectations, we find that abnormal returns to insider purchases―used to proxy for private information―are reduced following IFRS adoption. Similar results are derived across numerous subsamples and proxies used to isolate IFRS effects attributable to comparability. Together, the findings are consistent with mandatory IFRS adoption improving comparability and thus leading to capital market

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The ethnic composition of US scientists and engineers is undergoing a signi…cant transformation. This study applies an ethnic-name database to individual patent records granted by the United States Patent and Trademark O ¢ ce to document these trends with greater detail than previously available. Most notably, the contributions of Chinese and Indian scientists to US technology formation increased dramatically in the 1990s, before noticeably leveling o ¤ after 2000 and declining in the case of Indian researchers. Growth in ethnic innovation is concentrated in high-tech sectors; the institutional and geographic dimensions are further characterized.

Recent research documents that while men are eager to compete, women often shy away from competitive environments. A consequence is that few women succeed in and win competitions. Using experimental methods we show that affirmative action entices women to compete. When a preference is given to getting women winners, more women and fewer men enter competitions, and the response exceeds that predicted by changes in the probability of winning. This change in behavior is in part explained by the fact that under affirmative action the probability of winning depends not only on one’s rank relative to other group members, but also on one’s rank within gender. Both beliefs on rank and attitudes towards competition change when moving to a within-gender competition. The changes in competitive entry have important implications when assessing the performance costs associated with affirmative action. Specifically it implies that the minimum performance threshold for female winners need not be lowered to the extent predicted based on ex-ante entry decisions. When initial competitive entry is not payoff maximizing, employers may not need to lower their performance requirement to achieve a more diverse set of winners

We propose a signaling model in which investors are loss averse to reductions in dividends relative to the reference point set by prior dividends. Managers with strong but unobservable earnings separate themselves by paying high dividends and still retaining enough earnings to be likely to at least match the same dividend next period. The model matches several important features of the data, including equilibrium dividend policies that can follow a Lintner partialadjustment model; a modal dividend change of zero; a stronger market reaction to dividend cuts than dividend increases; and a signaling mechanism that does not involve public destruction of value, a notion that managers reject in surveys. We also find empirical support for some novel predictions. For helpful comments we thank Xavier Gabaix and seminar participants at NYU Stern, the University of