The Fragility of Organization Capital
Firms with high levels of organization capital (OK), a firm-specific production factor provided by key employees, are known to be risky and earn high stock returns. We argue that fragility of OK (i.e., its sensitivity to potential disruptions) is an independently important dimension of this risk. We...
Gespeichert in:
| Veröffentlicht in: | Journal of financial and quantitative analysis 2022-05, Vol.57 (3), p.857-887 |
|---|---|
| Hauptverfasser: | , , |
| Format: | Artikel |
| Sprache: | eng |
| Schlagworte: | |
| Online-Zugang: | Volltext |
| Tags: |
Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
|
| container_end_page | 887 |
|---|---|
| container_issue | 3 |
| container_start_page | 857 |
| container_title | Journal of financial and quantitative analysis |
| container_volume | 57 |
| creator | Boguth, Oliver Newton, David Simutin, Mikhail |
| description | Firms with high levels of organization capital (OK), a firm-specific production factor provided by key employees, are known to be risky and earn high stock returns. We argue that fragility of OK (i.e., its sensitivity to potential disruptions) is an independently important dimension of this risk. We proxy for fragility by the size of the top management team and show that firms with small teams outperform firms with big teams by 5% annually. The return spread increases in the level of OK and correlates with the outside options of top executives. Further supporting our interpretation, shocks to team composition from unexpected deaths of chief executive officers cause larger value losses in smaller teams. |
| doi_str_mv | 10.1017/S0022109021000144 |
| format | Article |
| fullrecord | <record><control><sourceid>proquest_cross</sourceid><recordid>TN_cdi_proquest_journals_2653334461</recordid><sourceformat>XML</sourceformat><sourcesystem>PC</sourcesystem><cupid>10_1017_S0022109021000144</cupid><sourcerecordid>2653334461</sourcerecordid><originalsourceid>FETCH-LOGICAL-c407t-2bc6295286a50c7bb14229e2899395f36d84d77bfb4b036b3bd6691c62c2ccfb3</originalsourceid><addsrcrecordid>eNp1UM1LwzAUD6Jgnf4B3grisfry0aQ5ynBTGOzgPJckTWvG1tSkO8y_3owNdhAv78H7fT1-CN1jeMKAxfMHACEYJKQBgBm7QBkWJS-4xPwSZQe4OODX6CbGdeKkA2TocfVl81lQndu4cZ_7Nl-GTvXuR43O9_lUDW5Um1t01apNtHenPUGfs9fV9K1YLOfv05dFYRiIsSDacCJLUnFVghFaY0aItKSSksqypbypWCOEbjXTQLmmuuHpvyQyxJhW0wl6OPoOwX_vbBzrtd-FPkXWhJeUUsY4Tix8ZJngYwy2rYfgtirsawz1oY36TxtJkx811vjexbOiAhC0xEAThZ5s1VYH13T2nP6_8S-x4miC</addsrcrecordid><sourcetype>Aggregation Database</sourcetype><iscdi>true</iscdi><recordtype>article</recordtype><pqid>2653334461</pqid></control><display><type>article</type><title>The Fragility of Organization Capital</title><source>EBSCOhost Business Source Complete</source><source>Cambridge University Press Journals Complete</source><creator>Boguth, Oliver ; Newton, David ; Simutin, Mikhail</creator><creatorcontrib>Boguth, Oliver ; Newton, David ; Simutin, Mikhail</creatorcontrib><description>Firms with high levels of organization capital (OK), a firm-specific production factor provided by key employees, are known to be risky and earn high stock returns. We argue that fragility of OK (i.e., its sensitivity to potential disruptions) is an independently important dimension of this risk. We proxy for fragility by the size of the top management team and show that firms with small teams outperform firms with big teams by 5% annually. The return spread increases in the level of OK and correlates with the outside options of top executives. Further supporting our interpretation, shocks to team composition from unexpected deaths of chief executive officers cause larger value losses in smaller teams.</description><identifier>ISSN: 0022-1090</identifier><identifier>EISSN: 1756-6916</identifier><identifier>DOI: 10.1017/S0022109021000144</identifier><language>eng</language><publisher>New York, USA: Cambridge University Press</publisher><subject>Börsenkurs ; Capital ; Companies ; Financial analysis ; Führungskräfte ; Humankapital ; Return on investment ; Stocks ; Teams ; Top management ; USA</subject><ispartof>Journal of financial and quantitative analysis, 2022-05, Vol.57 (3), p.857-887</ispartof><rights>The Author(s), 2021. Published by Cambridge University Press on behalf of the Michael G. Foster School of Business, University of Washington</rights><rights>Copyright University of Washington, School of Business Administration May 2022</rights><lds50>peer_reviewed</lds50><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c407t-2bc6295286a50c7bb14229e2899395f36d84d77bfb4b036b3bd6691c62c2ccfb3</citedby><cites>FETCH-LOGICAL-c407t-2bc6295286a50c7bb14229e2899395f36d84d77bfb4b036b3bd6691c62c2ccfb3</cites></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><linktohtml>$$Uhttps://www.cambridge.org/core/product/identifier/S0022109021000144/type/journal_article$$EHTML$$P50$$Gcambridge$$H</linktohtml><link.rule.ids>164,314,780,784,27924,27925,55628</link.rule.ids></links><search><creatorcontrib>Boguth, Oliver</creatorcontrib><creatorcontrib>Newton, David</creatorcontrib><creatorcontrib>Simutin, Mikhail</creatorcontrib><title>The Fragility of Organization Capital</title><title>Journal of financial and quantitative analysis</title><addtitle>J. Financ. Quant. Anal</addtitle><description>Firms with high levels of organization capital (OK), a firm-specific production factor provided by key employees, are known to be risky and earn high stock returns. We argue that fragility of OK (i.e., its sensitivity to potential disruptions) is an independently important dimension of this risk. We proxy for fragility by the size of the top management team and show that firms with small teams outperform firms with big teams by 5% annually. The return spread increases in the level of OK and correlates with the outside options of top executives. Further supporting our interpretation, shocks to team composition from unexpected deaths of chief executive officers cause larger value losses in smaller teams.</description><subject>Börsenkurs</subject><subject>Capital</subject><subject>Companies</subject><subject>Financial analysis</subject><subject>Führungskräfte</subject><subject>Humankapital</subject><subject>Return on investment</subject><subject>Stocks</subject><subject>Teams</subject><subject>Top management</subject><subject>USA</subject><issn>0022-1090</issn><issn>1756-6916</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2022</creationdate><recordtype>article</recordtype><recordid>eNp1UM1LwzAUD6Jgnf4B3grisfry0aQ5ynBTGOzgPJckTWvG1tSkO8y_3owNdhAv78H7fT1-CN1jeMKAxfMHACEYJKQBgBm7QBkWJS-4xPwSZQe4OODX6CbGdeKkA2TocfVl81lQndu4cZ_7Nl-GTvXuR43O9_lUDW5Um1t01apNtHenPUGfs9fV9K1YLOfv05dFYRiIsSDacCJLUnFVghFaY0aItKSSksqypbypWCOEbjXTQLmmuuHpvyQyxJhW0wl6OPoOwX_vbBzrtd-FPkXWhJeUUsY4Tix8ZJngYwy2rYfgtirsawz1oY36TxtJkx811vjexbOiAhC0xEAThZ5s1VYH13T2nP6_8S-x4miC</recordid><startdate>20220501</startdate><enddate>20220501</enddate><creator>Boguth, Oliver</creator><creator>Newton, David</creator><creator>Simutin, Mikhail</creator><general>Cambridge University Press</general><scope>OQ6</scope><scope>AAYXX</scope><scope>CITATION</scope><scope>8BJ</scope><scope>FQK</scope><scope>JBE</scope></search><sort><creationdate>20220501</creationdate><title>The Fragility of Organization Capital</title><author>Boguth, Oliver ; Newton, David ; Simutin, Mikhail</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c407t-2bc6295286a50c7bb14229e2899395f36d84d77bfb4b036b3bd6691c62c2ccfb3</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2022</creationdate><topic>Börsenkurs</topic><topic>Capital</topic><topic>Companies</topic><topic>Financial analysis</topic><topic>Führungskräfte</topic><topic>Humankapital</topic><topic>Return on investment</topic><topic>Stocks</topic><topic>Teams</topic><topic>Top management</topic><topic>USA</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Boguth, Oliver</creatorcontrib><creatorcontrib>Newton, David</creatorcontrib><creatorcontrib>Simutin, Mikhail</creatorcontrib><collection>ECONIS</collection><collection>CrossRef</collection><collection>International Bibliography of the Social Sciences (IBSS)</collection><collection>International Bibliography of the Social Sciences</collection><collection>International Bibliography of the Social Sciences</collection><jtitle>Journal of financial and quantitative analysis</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Boguth, Oliver</au><au>Newton, David</au><au>Simutin, Mikhail</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>The Fragility of Organization Capital</atitle><jtitle>Journal of financial and quantitative analysis</jtitle><addtitle>J. Financ. Quant. Anal</addtitle><date>2022-05-01</date><risdate>2022</risdate><volume>57</volume><issue>3</issue><spage>857</spage><epage>887</epage><pages>857-887</pages><issn>0022-1090</issn><eissn>1756-6916</eissn><abstract>Firms with high levels of organization capital (OK), a firm-specific production factor provided by key employees, are known to be risky and earn high stock returns. We argue that fragility of OK (i.e., its sensitivity to potential disruptions) is an independently important dimension of this risk. We proxy for fragility by the size of the top management team and show that firms with small teams outperform firms with big teams by 5% annually. The return spread increases in the level of OK and correlates with the outside options of top executives. Further supporting our interpretation, shocks to team composition from unexpected deaths of chief executive officers cause larger value losses in smaller teams.</abstract><cop>New York, USA</cop><pub>Cambridge University Press</pub><doi>10.1017/S0022109021000144</doi><tpages>31</tpages></addata></record> |
| fulltext | fulltext |
| identifier | ISSN: 0022-1090 |
| ispartof | Journal of financial and quantitative analysis, 2022-05, Vol.57 (3), p.857-887 |
| issn | 0022-1090 1756-6916 |
| language | eng |
| recordid | cdi_proquest_journals_2653334461 |
| source | EBSCOhost Business Source Complete; Cambridge University Press Journals Complete |
| subjects | Börsenkurs Capital Companies Financial analysis Führungskräfte Humankapital Return on investment Stocks Teams Top management USA |
| title | The Fragility of Organization Capital |
| url | https://sfx.bib-bvb.de/sfx_tum?ctx_ver=Z39.88-2004&ctx_enc=info:ofi/enc:UTF-8&ctx_tim=2024-12-23T12%3A23%3A49IST&url_ver=Z39.88-2004&url_ctx_fmt=infofi/fmt:kev:mtx:ctx&rfr_id=info:sid/primo.exlibrisgroup.com:primo3-Article-proquest_cross&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.genre=article&rft.atitle=The%20Fragility%20of%20Organization%20Capital&rft.jtitle=Journal%20of%20financial%20and%20quantitative%20analysis&rft.au=Boguth,%20Oliver&rft.date=2022-05-01&rft.volume=57&rft.issue=3&rft.spage=857&rft.epage=887&rft.pages=857-887&rft.issn=0022-1090&rft.eissn=1756-6916&rft_id=info:doi/10.1017/S0022109021000144&rft_dat=%3Cproquest_cross%3E2653334461%3C/proquest_cross%3E%3Curl%3E%3C/url%3E&disable_directlink=true&sfx.directlink=off&sfx.report_link=0&rft_id=info:oai/&rft_pqid=2653334461&rft_id=info:pmid/&rft_cupid=10_1017_S0022109021000144&rfr_iscdi=true |