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We highlight two mechanisms of limited attention for expert information intermediaries, i.e., analysts, and the effects of such limited attention on the market price discovery process. We approach analysts' limited attention from the perspective of day-to-day arrival of information and processing of tasks. We examine the attention-limiting role of competing tasks (number of earnings announcements and forecasts for portfolio firms) and distracting events (number of earnings announcements for non-portfolio firms) in analysts' forecast accuracy and the effects of such, on the subsequent price discovery process. Our results show that competing tasks worsen analysts' forecast accuracy, and competing task induced limited attention delays the market price adjustment process. On the other hand, distracting events can improve analysts' forecast accuracy and accelerate market price adjustments when such events relate to analysts' portfolio firms through industry memberships.

The purpose of this paper is to find out whether investors tend to reward firms that resist the urge to borrow and operated with debt free balance sheet and penalize firms that have high levels of debt.

The performance of portfolios of debt free firms are compared to comparable portfolios of leveraged firms. Debt free firms are matched with conventional firms of the same size from the same sector. Two tests of differences in the performance are conducted for a long period and for a short period.

The results of the study indicate that investments in portfolios of debt free firms tend to generate higher returns than investments in their peers of portfolios of leveraged firms over long and short periods. The results have clear implications on investment decisions and investment performance. Investors tend to reward firms that resist the urge to borrow heavily and operate with debt free balance sheet and penalize firms that have high level of debt.

The results of the study can be of great interest to investors as well as firms specially during periods of financial crises. It raises again the question as to what is the optimal level of debt a firm should have in normal times and during periods of economic or financial crises.

This paper aims to seek answers to a primary question: “How much do divergent leverage factors account for fluctuations in time-varying financial leverage in leading hospitality sub-sectors decomposed by four exclusive sub-portfolios?” In the path of seeking answers, this paper investigated the effects of both firm-specific and macroeconomic indicators to firms’ varying financial leverage in those primary sub-sectors overtime.

In each sub-sector portfolios, firms were sorted based on market-to-book values (Mktbk _it ) with median breakpoint percentiles. For hypothesis testing, this paper constructed panel regression models with firm fixed-effects to layout fluctuant financial leverage phenomenon engaged with a set of 11 leverage factors in each Mktbk _it sorted sub-sector portfolios.

Results exhibited assorted evidences. The bottom line was: firms with different market capitalization rates in each portfolio acted differently in regard to the magnitude of financial leverage across time.

The final sample of 415 firms in four sub-sector portfolios sufficiently embraced financial leverage composition in the hospitality industry across time. However, by reason of lack of data in the other intra-hospitality industries, such as gaming and/or cruise lines, findings did not represent the firms operated in those sub-industries.

This paper departed from the established context of the previous literature in the manner that it expects to add to the literature by demonstrating the core drivers causing the deviations in financial structure in four exclusive, hospitality industry sub-sector portfolios with varying leverage proxies overtime.

The purpose of this paper is to present a new index summarizing women’s leadership in entrepreneurial ventures (WLEV) in the context of venture capital (VC) firm portfolios. Gender representation among VC portfolio firms is a concern for academics, and increasingly for practitioners aiming to reap the benefits of gender diversity.

Drawing on the institutional theory and gender role congruity theory, the authors present dimensions of women’s involvement in leadership roles in VC-funded companies. As previous research has not provided standard definitions, the authors clarify the relevant dimensions. In addition, the authors present an empirical analysis of 153 VC fund portfolios and demonstrate women’s involvement across the three key dimensions forming the WLEV Index: involvement in leadership, management and founding of portfolio companies.

The authors present a summary of WLEV index aligned with previous research. The index has suitable characteristics for future research and introduces a first comparison with existing statistics. The authors’ findings show relatively low scores of women’s leadership in the VC portfolio companies investigated, especially as compared to average USA companies.

This paper introduces standardized definitions for women’s leadership in terms of: women-led, women-founded and women-managed. This paper also introduces a methodology and constructs an index to uniformly compare VC firm portfolio companies according to all three dimensions of women’s leadership. These contributions can be expected to form the basis of future research on gender representation in VC portfolio companies.

Lai, Li, Conover, and Wu (2010) propose a four-factor financial distress model to explain stock returns in the U.S. and Japanese markets. We examine this model in the stock markets of Australia, and six Asian markets (Hong Kong, Indonesia, Korea, Malaysia, Singapore, and Thailand). We find broad empirical support for the four-factor financial distress risk asset-pricing model in those markets. The four-factor financial distress asset pricing model improves explanatory power beyond the Fama–French (1993) three-factor asset pricing model in six of the seven Asian-Pacific markets (12 of 14 portfolio groupings), while the Carhart (1997) momentum-based asset pricing model only improves explanatory power beyond the Fama–French model in three of the seven markets (4 of 14 portfolio groupings).

We examine explicitly priced financial distress risk in post-1990 equity markets. We add a financial distress risk factor to Fama and French's (1993) three-factor model, based on Griffin and Lemmon's (2002) findings that financial distress is not fully captured by the book-to-market factor. We test three-factor and four-factor capital asset pricing models using both annual buy-and-hold analysis and monthly time series analysis across portfolios adjusted for common book-to-market, size, and financial distress factors. We find empirical support for an Ohlson (1980) O-score-based financial distress risk four-factor asset pricing model in the U.S. and Japanese markets.

This paper explores how two understudied characteristics of a firm's product portfolio, namely, aging of products and (non)innovativeness of products, affect firm survival. The influence of these product portfolio characteristics on organizational mortality can be observed both at the firm and at the industry levels. Paradoxically, the portfolio's influence at the firm and at the industry levels may go in opposite directions. Specifically, I predict that portfolios with aging products make their firms weaker competitors and survivors. However by weakening these firms, “aging” portfolios reduce competitive pressures at the industry level and, therefore, improve firm survival indirectly by changing industry vital rates. In contrast, firms with innovative product portfolios should be stronger survivors. At the same time, they are likely to intensify competition in the industry and, as a result, diminish survival chances of all firms, including those with innovative products. The analyses of all firms’ product portfolios in the worldwide optical disk drive industry, 1983–1999, support these predictions.

Firms are increasingly depending on supplier portfolios in the quest for firm innovation. However, whether concentrated supplier portfolios are beneficial to innovation remains highly disputed. This study aims to investigate the effect of supplier portfolio concentration on firm innovation and the contingencies that shape this effect.

The authors build on the knowledge search view to theorize a U-shaped effect of supplier portfolio concentration on firm innovation and further propose that the U-shaped effect is contingent on financial slack and growth opportunities. The authors collected panel data from 1,320 manufacturing firms in China. The negative binomial regression analyses were performed to test the hypotheses.

Supplier portfolio concentration has a U-shaped effect on firm innovation. This U-shaped effect is weakened and flipped by financial slack but strengthened by growth opportunities.

The findings extend current understandings of the influence of supplier portfolio on firm innovation by clarifying the U-shaped effect of supplier portfolio concentration on innovation and the circumstances under which supplier portfolio concentration is more effective for firm innovation.

The purpose of this study is to investigate the effects of increased fund commitments on portfolio size and subsequent effects on portfolio success rates. This paper empirically analyzes the changes in average portfolio size over a 20‐year time period and how these changes affect the venture capitalists' ability to successfully exit their investments.

The authors utilize venture capitalists' fund level data and conduct both univariate and multivariate analysis. The multivariate analysis is conducted using a two‐limit regression tobit model. This is justified since the authors' dependent variable is a ratio bounded by zero and one, hence the tobit specification is the most appropriate methodology.

The authors find that increasing the size of portfolios not only leads to a decrease in the number of successful investments but also significantly affects portfolio success rates. They also find evidence which suggests that some optimal portfolio size exists.

The sample was limited to independent private partnerships that raised funds specifically for investment in US portfolio companies and it represents all funds maintained in the SDC database with non‐missing data on fund size and other fund characteristics.

There are three main practical implications derived from this study. First, venture capitalists overextend themselves by investing in too many portfolio firms. Second, some optimal portfolio size exists beyond which success rate of the venture capitalist's portfolio declines. Third, portfolio size is an important determinant of venture capital portfolio success rates.

The study presents new evidence that venture capitalists have a tendency to increase their portfolio size in years following growth in fund inflows, an idea that has not been investigated earlier. The authors also use data that is not adulterated by significant economic and financial conditions such as internet bubble burst of 2000 and financial crisis of 2007/2008.

The purpose of this study is to investigate the association of international orientation and market orientation and their joint effects on export market success. Additionally, it aims to examine how firms’ foreign market portfolio diversity moderates this association.

On the basis of a review of the literature on market orientation and international orientation in relation to manufacturers’ performance on export markets, the paper proposes a set of hypotheses. The hypotheses are empirically tested using 249 questionnaire responses from CEOs supplemented with census data.

The results indicate that international orientation is positively related to export market success and that this relationship is independent of market portfolio diversity. The paper provides insights to the limitations of the dominant position that holds market orientation as an undisputed valuable strategic capability since market orientation has different non‐linear associations with export market success depending on market portfolio diversity. Finally, the results indicate that the joint effects of international orientation and market orientation on export market success only are present for firms with a focused market portfolio.

The authors argue that the performance implications of different strategic orientations on export market success are context‐dependent and that firms’ market portfolio diversity assists in providing this nuanced insight. The study's empirical cross‐sectional setting limits inference about causality among the constructs.

While all exporting manufacturing firms may benefit from an international orientation, business practitioners are advised to pay particular attention to the diversity of their foreign market portfolio prior to allocating resources to market‐oriented activities.

In this empirical contribution, the authors show how international orientation explains performance differentials among manufacturing exporters as well as how market orientation positively moderates this relationship. Furthermore, the paper shows the context dependency of the value of firms’ market orientation on the basis of export market portfolio diversity.