Business Administration, Management, and Operations Commons^™

The Dark Side Of Executive Compensation Duration: Evidence From Mergers And Acquisitions, Zhi Li, Qiyuan Peng

Business Faculty Articles and Research

We find that contrary to popular belief, CEOs with long compensation duration do not make better long-term investment decisions. Using a comprehensive pay duration measure, we find that acquisitions conducted by CEOs with long compensation duration receive more negative announcement returns, and experience significantly worse post-acquisition abnormal operating and stock performance, compared with deals conducted by CEOs with short compensation duration. The negative correlation between compensation duration and mergers and acquisitions (M&A) performance is driven by long-term time-vesting plans, not by performance-vesting plans. The results suggest that extending CEO pay horizons without implementing performance requirements is insufficient to improve managerial …

Technology Transfer In Spatial Competition When Licensees Are Asymmetric, Sougata Poddar, Swapnendu Banerjee, Monalisa Ghosh

Economics Faculty Articles and Research

We study technology transfer in a spatial competition with two asymmetric licensees (firms) with an outside innovator who decides how many licenses to offer and the optimal licensing contract. We show the optimal licensing policy is pure royalty contract to both licensees leading to a complete diffusion of the new technology. The result holds irrespective of the cost differentials between the licensees and for innovation of all sizes, that is, drastic or non‐drastic. This robust finding although supports the dominance of royalty licensing in practice; however, consumers may not be necessarily better off. We also throw light on the situation …

Antecedents To Buyer-Supplier Coordination In The Pharmaceutical Supply Chain, Thanigavelan Jambulingam, Ravi Kathuria

Business Faculty Articles and Research

Purpose

The purpose of this study is to understand the antecedents that influence supply chain coordination in the pharmaceutical supply chain using the transaction cost analysis framework.

Design/methodology/approach

Data from 156 retail pharmacies on their relationship with the pharmaceutical wholesalers are used to test the hypotheses.

Findings

The findings of this paper show the importance of antecedents that are based on the transactional cost theory, such as asset specificity and environmental uncertainty. These antecedents impact the supply chain process coordination at different levels – transactional, operational and strategic.

Research limitations/implications

Future research may investigate additional antecedents using other theoretical lenses. …