News and Events
Mark Young’s book "Trojan Tennis – A History of the Storied Men’s Tennis Program at the University of Southern California" is now in print.
The book traces the history (1899-2907) of USC Men's Tennis. Mark spent six years digging through USC tennis archives, published articles, websites and family scrapbooks and even went into SC’s library stacks (!) to unearth a great deal of information that was in danger of being forgotten. He combines interviews with over 60 players including many of USC’s greatest team members such as Stan Smith (who wrote one of the forewords), Bob Lutz, Dennis Ralston, Steve Johnson (who wrote the second foreword) and coaches Dick Leach and Peter Smith to tell the story of the greatest men’s collegiate tennis team of all time.
Mark and Men’s Head Tennis Coach, Peter Smith just completed an interview on the Tennis Channel which can be seen here: https://www.facebook.com/tennischannel/videos/10156499619509175/
Congratulations, Mark. (05-21-18)
Nan Jia and Yongxiang Wang just had an article entitled "Value Creation and Value Capture in Governing Shareholder Relationships: Evidence from a Policy Experiment in an Emerging Market" accepted by the Strategic Management Journal. The research and managerial abstracts are below. Congratulations, Nan and Yongxiang!
Protecting minority shareholders is a central issue in corporate governance. A common tool of empowering minority shareholders is to curb controlling shareholders’ power of expropriating firm value, but this approach was rarely successful because of the resistance from powerful controlling shareholders. We examine an alternative way of empowering minority shareholders without directly fighting with controlling shareholders. A major corporate governance reform in China gave minority shareholders a decision right over certain actions that affected the creation of firm value. We demonstrate that, the greater the extent to which minority shareholders’ actions can influence the firm’s value ex-post, the more value controlling shareholders concede to minority shareholders ex-ante. This effect becomes even stronger when controlling shareholders are able to expropriate a larger portion of firm value.
Minority shareholders often have to contend with excessive extraction of firm value by powerful controlling shareholders, particularly in emerging markets. When this tension is considered as a zero-sum game in which every gain to controlling shareholders has to come from a loss to minority shareholders, controlling shareholders strongly resist any effort to empower minority shareholders. We propose an alternative approach to empower minority shareholders. A major reform of Chinese listed firms bestowed upon minority shareholders decision rights to take certain actions that could ex-post create a larger “pie” (firm value) for all shareholders. We find that controlling shareholders give away greater value ex-ante to minority shareholders to induce more of these actions. Consequentially, minority shareholders are more effectively empowered when they can affect firm value.
Minority shareholders often have to contend with excessive extraction of firm value by powerful controlling shareholders, particularly in emerging markets. When this tension is considered as a zero-sum game in which every gain to controlling shareholders has to come from a loss to minority shareholders, controlling shareholders strongly resist any effort to empower minority shareholders. We propose an alternative approach to empower minority shareholders. A major reform of Chinese listed firms bestowed upon minority shareholders decision rights to take certain actions that could ex-post create a larger “pie” (firm value) for all shareholders. We find that controlling shareholders give away greater value ex-ante to minority shareholders to induce more of these actions. Consequentially, minority shareholders are more effectively empowered when they can affect firm value. (05-21-18)
As announced at the Marshall Awards last week:
- John Boudreau won the Herbert Heneman Jr. Award for Career Achievement from the HR Division of the Academy of Management this year. To be recognized at the AOM meeting in Atlanta on August 13, 2018 at the Breakfast Awards Ceremony.
- Shon Hiatt won the Golden Apple for the Full-Time MBA Core, awarded annually by students to outstanding Marshall Faculty members in recognition of their excellence in teaching.
- Edward Lawler won the Dean’s Award for Impact on Practice at the Marshall Annual Faculty Awards
- Michael Mische won the Golden Apple Teaching Awards for Effective Course Teaching by the Marshall Business Student Government (MBSG), presented at the Marshall Undergraduate Commencement ceremony on May 11, 2018. (05-07-18)
Cheryl Wakslak recently had a manuscript accepted by Social Psychological and Personality Science. It is co-authored with Alison Ledgerwood, Amber Sanchez, and Heather Rees (all at UC Davis). Title and abstract are below. Congratulations, Cheryl!
A Brief, Distance-Based Intervention Can Increase Intentions to Follow Evidence-Based Guidelines in Cancer Screening
Although research findings are increasingly accessible to the public, people may choose to rely on anecdotal over evidence-based information when making important decisions. Thus, a key challenge facing the scientific community is to develop effective strategies for increasing people’s reliance on research evidence in their decision-making. Focusing on the critical context of cancer-screening decisions, we find that a brief, distance-based intervention can influence people’s intentions to follow evidence-based rather than anecdotal information. Specifically, in a preregistered and well-powered experiment (N=224), participants who set a screening schedule for the next ten years before considering a decision for an upcoming appointment were more inclined to follow the implications of evidence-based screening guidelines (vs. an anecdote), compared to participants who only considered the upcoming appointment. The success of this distance-based intervention represents an important first step in translating decades of laboratory research on distance into practical interventions for more complex and consequential decisions. (05-02-18)
Nan Jia just had a manuscript with Kenneth Huang and Cyndi Zhang accepted for publication by AMJ. The title and abstract are below. As she notes, this paper benefited much from the feedback from two O&S meetings, for which the authors are grateful. Congratulations, Nan!
Public Governance, Corporate Governance, and Firm Innovation: An Examination of State-Owned Enterprises, Nan Jia, Kenneth G. Huang, Cyndi Man Zhan
Innovation activities create substantial firm value, but they are difficult to manage owing to agency risk which is commonly thought to result in shirking, hence underinvestment in innovation. However, agency risk can also create inefficient allocation of resources among innovation activities, on which the literature provided limited understanding. We examine an important outcome created by agency risk—that agents pursue the quantity of innovation at the expense of the novelty, and investigate how it is influenced by corporate and public governance. We theorize that improved corporate governance tools, including better alignment of agents’ private incentives and stronger monitoring, and high-quality public governance reduce such agency risk in state-owned enterprises (SOEs). Furthermore, higher-quality public governance enhances the functioning of corporate governance tools in further reducing such agency risk in innovation. We test our theory in the context of Chinese SOEs that responded to state’s pro-innovation policies relying disproportionately on quantifiable outcomes (e.g., patent counts) for assessing innovation performance. Our difference-in-differences estimates provide overall support for the hypotheses. These findings provide new insights on how agency risk affects innovation by distinguishing the consequences on quantity and novelty of innovation and on how conventional corporate governance tools shaping innovation is dependent on public governance. (04-19-18)