Firm resources and joint ventures: what determines zero‐sum versus positive‐sum outcomes?

Wolff, James A.; Reed, Richard

doi:10.1002/mde.991

Cited by 20 publications

(30 citation statements)

References 61 publications

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“…Jancenelle et al, 2016), the event-study methodology (Fama et al, 1969) was used to measure the market’s reactions to earnings surprises and post-earnings announcement conference calls. The CAR variable has been commonly used in prior research to examine the impact of firm events on stock price returns, such as acquisition announcements (e.g., Capron and Pistre, 2002), joint-venture announcements (e.g., Wolff and Reed, 2000), and surprises on earnings prior to conference calls (e.g., Jancenelle et al, 2016). For this study, a 2-day event window was used, corresponding to t − 1 and t 0 , where t − 1represents the day right before the announcement of earnings and t 0 represents the next trading day.…”

Section: Methodsmentioning

confidence: 99%

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Making investors feel good during earnings conference calls: The effect of warm-glow rhetoric

Jancenelle

Storrud‐Barnes

Iaquinto

2019

Journal of General Management

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In recent years, earnings conference calls have become a popular disclosure tool through which top managers can provide more information to the market regarding the quarterly earnings of their firms. Although some research has indicated that the tone of earnings conference calls is crucial in mitigating investors’ negative reactions to earnings surprises, relatively little is still known about other rhetorical tactics that may be available for managers to create value during times of heightened earnings uncertainty. This article contends that warm-glow rhetoric may be another way to mitigate investors’ negative reactions to earnings surprises, as warm-glow theory suggests that individuals are willing to make suboptimal economic choices when they receive warm-glow payouts. Hypotheses drawing on warm-glow theory and the incremental useful information perspective are developed and tested using computer-assisted text analysis (CATA) and event study methodology on a longitudinal sample of 1920 calls, and it is suggested that warm-glow rhetoric positively moderates the relationship between earnings surprises and financial performance (as measured through cumulated abnormal returns). The findings illustrate how the warm-glow effect can be used as an unconventional, yet effective tactic with which managers can create market value. A discussion of the findings and their implications for theory and practice concludes the study.

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Section: Methodsmentioning

confidence: 99%

“…Capron and Pistre, 2002), joint venture announcements (e.g. Wolff and Reed, 2000), and earnings conference calls (e.g. Jancenelle et al, 2016; Price et al, 2012).…”

Section: Introductionmentioning

confidence: 99%

Making investors feel good during earnings conference calls: The effect of warm-glow rhetoric

Jancenelle

Storrud‐Barnes

Iaquinto

2019

Journal of General Management

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“…A customary estimation window of 200 days was used for each stock return-series, beginning on day t -270 and ending on day t -71. This is a typical length of estimation for event studies (e.g., Wolff & Reed, 2000). This estimation window is consistent with prior research.…”

Section: Methodsmentioning

confidence: 99%

Organizational Psychological Capital During Earnings Conference Calls: Mitigating Shareholders’ Sell-Off in the Face of Earnings Surprises?

Jancenelle

2018

Journal of Leadership & Organizational Studies

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Publicly traded firms release their earnings figures quarterly, and subsequently hold earnings conference calls where top managers can comment on firm strategy. Markets are particularly sensitive to earnings surprises, and conference calls are becoming an increasingly useful tool capable of mitigating shareholders' negative reactions to surprises on earnings. This article argues that top managers who cue organizational-level positive psychological capital (PsyCap) are likely to mitigate investors' reactions unanticipated changes in earnings. The developed hypotheses draw on arguments from the incremental useful information perspective, upper echelons theory, and the PsyCap literature. The analysis relies on a longitudinal data set composed of 1,920 observations including calls held for firms listed on the S&P 500 for all quarters of 2015. Computer-assisted text analysis is used to assess cues of organizational PsyCap included within each call, and event-study methodology is used to assess market performance. The findings suggest that organizational PsyCap mitigates stockholders' negative reaction to earnings surprise, thereby indicating that psychological capital is well-perceived by investors and adds back market value for firms. A discussion of the findings and their implications for research and practice concludes the study.

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“…A positive force (e.g., Respect→ + Involved) offers potential for uniform increase, but also decrease, of both origin and destination perceptions (Wolff & Reed, 2000). A positive force is an unconscious reaction, or conscious behavior, considered helpful to a viable collaboration, but damaging to a failing one.…”

Section: History Of Collaboration Theorymentioning

confidence: 99%

PILAR: A Model of Collaboration to Encapsulate Social Psychology

Heslop

Stojanovski

Paul

et al. 2018

Review of General Psychology

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This article presents an iterative examination of a grounded theory of collaboration in conjunction with social psychology literature. The resulting PILAR (Prospects, Involved, Liked, Agency, Respect) model of collaboration encapsulates over 30 social and group psychology (SGP) theories, including social identity theory, social network analysis, and psychological safety. Selected works of the early 20th-century scholars Lewin, Moreno, Simmel, and Foucault resonate with the PILAR model. We considered that, in constructing a generalized model of collaboration made possible by the availability of modern SGP theory, PILAR may represent advancement toward accomplishing these early scholars’ original intent. To validate PILAR, we proposed an empirical investigation for its consistency with organizational psychology, positive psychology, and appreciative inquiry, and for testing whether learning PILAR may improve collaboration skills for individuals lacking empathy.

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Firm resources and joint ventures: what determines zero‐sum versus positive‐sum outcomes?

Cited by 20 publications

References 61 publications

Making investors feel good during earnings conference calls: The effect of warm-glow rhetoric

Making investors feel good during earnings conference calls: The effect of warm-glow rhetoric

Organizational Psychological Capital During Earnings Conference Calls: Mitigating Shareholders’ Sell-Off in the Face of Earnings Surprises?

PILAR: A Model of Collaboration to Encapsulate Social Psychology

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