Financial Slack, Strategy, and Competition in Movie Distribution

Published Online:https://doi.org/10.1287/orsc.1120.0765

References

  • Abadie A, Imbens GW. (2006) Large sample properties of matching estimators for average treatment effects. Econometrica 74:(1)235–267.CrossrefGoogle Scholar
  • Ackerberg DA. (2001) Empirically distinguishing informative and prestige effects of advertising. RAND J. Econom. 32(2):316–333.CrossrefGoogle Scholar
  • Argote L, Greve HR. (2007) A Behavioral Theory of the Firm–40 years and counting: Introduction and impact. Organ. Sci. 18(3):337–349.LinkGoogle Scholar
  • Baker T, Nelson RE. (2005) Creating something from nothing: Resource construction through entrepreneurial bricolage. Admin. Sci. Quart. 50(3):329–366.CrossrefGoogle Scholar
  • Baron J, Hershey J. (1988) Outcome bias in decision evaluation. J. Personality Soc. Psych. 54(4):569–579.CrossrefGoogle Scholar
  • Bebchuk L, Grinstein Y, Peyer U. (2010) Lucky CEOs and lucky directors. J. Finance 65(6):2363–2401.CrossrefGoogle Scholar
  • Bernardo AE, Chowdhry B. (2002) Resources, real options, and corporate strategy. J. Financial Econom. 63(2):211–234.CrossrefGoogle Scholar
  • Bertrand M, Mullainathan S. (2001) Are CEOs rewarded for luck? The ones without principals are. Quart. J. Econom. 116(3):901–932.CrossrefGoogle Scholar
  • Blanchard OJ, Lopez-de-Silanes F, Shleifer A. (1994) What do firms do with cash windfalls? J. Financial Econom. 36(3):337–360.CrossrefGoogle Scholar
  • Bourgeois LJ. (1981) On the measurement of organizational slack. Acad. Management Rev. 6(1):29–39.CrossrefGoogle Scholar
  • Bromiley P. (1991) Testing a causal model of corporate risk taking and performance. Acad. Management J. 34(1):37–59.CrossrefGoogle Scholar
  • Camerer C, Loewenstein G, Weber M. (1989) The curse of knowledge in economic settings: An experimental analysis. J. Political Econom. 97(5):1232–1254.CrossrefGoogle Scholar
  • Chisholm DC, Norman G. (2006) When to exit a product: Evidence from the U.S. motion-picture exhibition market. Amer. Econom. Rev. 96(2):57–61.CrossrefGoogle Scholar
  • Cox A, Summers J. (1987) Heuristics and biases in the intuitive projection of retail sales. J. Marketing Res. 24(3):290–297.CrossrefGoogle Scholar
  • Curren M, Folkes V, Steckel J. (1992) Explanations for successful and unsuccessful marketing decisions: The decision maker’s perspective. J. Marketing 56(2):18–31.CrossrefGoogle Scholar
  • Cyert RM, March JG. (1963) A Behavioral Theory of the Firm (Prentice Hall, Englewood Cliffs, NJ).Google Scholar
  • Daniel F, Lohrke FT, Fornaciari CJ, Turner R. (2004) Slack resources and firm performance: A meta-analysis. J. Bus. Res. 57(6):565–574.CrossrefGoogle Scholar
  • Denrell J. (2004) Random walks and sustained competitive advantage. Management Sci. 50(7):922–934.LinkGoogle Scholar
  • Denrell J, Fang C. (2010) Predicting the next big thing: Success as a signal of poor judgment. Management Sci. 56(10):1653–1667.LinkGoogle Scholar
  • Denrell J, Fang C, Zhao Z. (2013) Inferring superior capabilities from sustained superior performance: A Bayesian analysis. Strategic Management J. 34(2):182–196.CrossrefGoogle Scholar
  • Duggan MG. (2000) Hospital ownership and public medical spending. Quart. J. Econom. 115(4):1343–1373.CrossrefGoogle Scholar
  • Einav L. (2007) Seasonality in the U.S. motion picture industry. RAND J. Econom. 38(1):128–146.CrossrefGoogle Scholar
  • Elberse A, Anand B. (2007) The effectiveness of pre-release advertising for motion pictures: An empirical investigation using a simulated market. Inform. Econom. Policy 19(3–4):319–343.CrossrefGoogle Scholar
  • Fazzari SM, Hubbard RG, Petersen BC. (1988) Financing constraints and corporate investment. Brookings Papers Econom. Activity (1):144–195.Google Scholar
  • Fee CE. (2002) The costs of outside equity control: Evidence from motion picture financing decisions. J. Bus. 75(4):681–711.CrossrefGoogle Scholar
  • Fee CE, Hadlock CJ, Pierce CJ. (2009) Investment, financing constraints, and internal capital markets: Evidence from the advertising expenditures of multinational firms. Rev. Financial Stud. 22(6):2361–2392.CrossrefGoogle Scholar
  • Fresard L. (2010) Financial strength and product market behavior: The real effects of corporate cash holdings. J. Finance 65(3):1097–1122.CrossrefGoogle Scholar
  • Gilchrist S, Himmelberg CP. (1995) Evidence on the role of cash flow for investment. J. Monetary Econom. 36(3):541–572.CrossrefGoogle Scholar
  • Harrison JR, March JG. (1984) Decision making and postdecision surprises. Admin. Sci. Quart. 29(1):26–42.CrossrefGoogle Scholar
  • Hayes D, Bing J. (2004) Open Wide: How Hollywood Box Office Became a National Obssession (Miramax Books and Hyperion, New York).Google Scholar
  • Hendricks K, Sorensen A. (2009) Information and the skewness of music sales. J. Political Econom. 117(2):324–369.CrossrefGoogle Scholar
  • Joo HH. (2009) Social learning and optimal advertising in the motion picture industry. . Working paper, University of Pennsylvania, Philadelphia.Google Scholar
  • Kim H, Kim H, Lee PM. (2008) Ownership structure and the relationship between financial slack and R&D investments: Evidence from Korean firms. Organ. Sci. 19(3):404–418.LinkGoogle Scholar
  • Lampel J, Shapira Z. (2001) Judgmental errors, interactive norms, and the dificulty of detecting strategic surprises. Organ. Sci. 12(5):599–611.LinkGoogle Scholar
  • Lefgren L, Platt B, Price J. (2011) Sticking with what (barely) worked. . NBER Working Paper 17477, National Bureau of Economic Research, Cambridge, MA.Google Scholar
  • Mishina Y, Pollock TG, Porac JF. (2004) Are more resources always better for growth? Resource stickiness in market and product expansion. Strategic Management J. 25(12):1179–1197.CrossrefGoogle Scholar
  • Moretti E. (2011) Social learning and peer effects in consumption: Evidence from movie sales. Rev. Econom. Stud. 78(1):356–393.CrossrefGoogle Scholar
  • Myers SC, Majluf NS. (1984) Corporate financing and investment decisions when firms have information that investors do not have. J. Financial Econom. 13(2):187–221.CrossrefGoogle Scholar
  • Nohria N, Gulati R. (1996) Is slack good or bad for innovation? Acad. Management J. 39(5):1245–1264.CrossrefGoogle Scholar
  • Penrose ET. (1959) The Theory of the Growth of the Firm (John Wiley & Sons, New York).Google Scholar
  • Perren A. (2004) A big fat indie sucess story? Press discourses surrounding the making and marketing of a “Hollywood” movie. J. Film Video 56(2):18–31.Google Scholar
  • Powell T. (2003) Varieties of competitive parity. Strategic Management J. 24(1):61–86.CrossrefGoogle Scholar
  • Ratner R, Herbst K. (2005) When good decisions have bad outcomes: The impact of affect on switching behavior. Organ. Behav. Human Decision Processes 96(1):23–37.CrossrefGoogle Scholar
  • Rauh JD. (2006) Investment and financing constraints: Evidence from the funding of corporate pension plans. J. Finance 61(1):33–71.CrossrefGoogle Scholar
  • Ravid SA. (1999) Information, blockbusters, and stars: A study of the film industry. J. Bus. 72(4):463–492.CrossrefGoogle Scholar
  • Rossman G, Chiu MM, Mol JM. (2008) Modeling diffusion of multiple innovations via multilevel difiusion curves: Payola in pop music radio. Sociol. Methodol. 38(1):201–230.Google Scholar
  • Singh JV. (1986) Performance, slack, and risk taking in organizational decision making. Acad. Management J. 29(3):562–585.CrossrefGoogle Scholar
  • Sorensen AT. (2007) Bestseller lists and product variety. J. Indust. Econom. 55(4):715–738.CrossrefGoogle Scholar
  • Sorenson O, Waguespack DM. (2006) Social structure and exchange: Self-confirming dynamics in Hollywood. Admin. Sci. Quart. 51(4):560–589.CrossrefGoogle Scholar
  • Winter S. (2004) Specialised perception, selection, and strategic surprise: Learning from the moths and bees. Long Range Planning 37(2):163–169.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.