Managers who are connected with the CEO:
• MUCH less likely to depart/more likely to get promoted
• No performance–dismissal sensitivity (it’s there for the unconnected)
• ≈ Same for hired vs. inherited connections!
Good for the shareholders? Hard to say but…
…looks like this “friends-with-benefits” situation is bad:
• Outside labor market outcomes after departure much poorer for dismissed connected managers than unconnected (the “retread” market)
• Appointing connected managers not associated with performance improvements
Also learned about their other fun paper in @ILRReview on how rookie TT finance profs tend to publish if they're hired by co-nationals (spoiler alert: not well) vs. alums of their grad school (spoiler alert: well; access to private info?) journals.sagepub.com/doi/full/10.11…
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Act I. I see this tweet👇 and DM old friend @ben_golub saying “yeah, that’s definitely not right, the seller would just invert Zillow’s signal, etc,, but I don’t want feel like a late night fight with a big account.” Ben’s like “I do.”
Act II. Turns out that while OP’s original post implied seller’s 𝘦𝘴𝘵𝘪𝘮𝘢𝘵𝘦 𝘰𝘧 𝘷𝘢𝘭𝘶𝘦 was N(1,s) but instead solved as if seller’s 𝘳𝘦𝘴𝘦𝘳𝘷𝘢𝘵𝘪𝘰𝘯 𝘱𝘳𝘪𝘤𝘦 were N(1,s), per this tweet👇
As usual, a great volatility explainer thread from Benn👇. It’s true that the market and VIX *usually* have a negative relationship. (The market tends to fall faster than it rises, there may be more hedging demand during downturns, …) But… 1/4
However, if you started paying attention recently… 2/4
…the (negative) VIX–market relationship probably looked *very* linear. In fact, as of ten days ago, the linearity was arguably the strongest it had *ever* been in the VIX’s 30-year history!
OK folks. Here’s my thread on technology for teaching online.🦠 I’m not an expert, but I’ve got some thoughts.
My goal is to cover a few things you might consider if you’re trying to quickly get an existing course online. And my focus is on technology, not pedagogy. 1/
Plan:
① Streaming/recording software
② Basic hardware
③ Presentation software
④ Advanced hardware
⑤ Tips and tricks
I’m not going to cover discussion forums, homework, etc. Your students probably already use an LMS (Blackboard or Canvas) and I’d stick with that for now. 2/
① STREAMING/RECORDING SOFTWARE
Key question is teaching synchronously (live) vs recorded.
Synchronous teaching should still get recorded for later, but ANY live viewing—and especially live interaction—requires particular software.
Suppose you had a side hustle catching snails on the weekend and delivering them to a restaurant catering to French tourists. You’d love to get some sense each Saturday of how many tourists are likely to arrive over the next week so you know how much time to spend snailing. 🐌 1/
You’re in luck: It turns out that there’s an arcane organization (the Coalition of Bakery Oven Examiners, or CBOE) who publish just such a forecast, called the FIX (i.e., the “French visitors IndeX”). Their forecast isn’t perfect, but it’s on their website so 🤷♂️. 2/
What does this have to do with baking? Who knows and who cares?! You’ve got your forecast and it helps you with your snailing.
But then you get an idea for a new side hustle. The French go on vacation in August. The FIX will go up then. You can predict it in advance! 💰 3/
Heading in to our first session at the 2020 Financial Reaearch Association conference; live-tweet starts now. (If you’re not interested, please 48-hour mute hashtag #FRA20 ). Program with paper links is here: fraconference.com/current-progra…
…and if you’re eager to get going early, here’s my #FRA2019 thread from last year:
Very excited for this Kentucky Finance Conference. It’s one of my favorite “boutique” conferences; always a great set of papers and awesome discussants. I met @arpitrage here for the first time last year.
First up, “Endogenous Price War Risks” by Winston Dou (with Yan Ji and Wei Wu). Price wars are moves to a new, collusive low-price Nash Equilibrium #KentuckyFin2019
Stylized facts: 1. (Low-frequency) consumption growth covaries with profit margins 2. There are more price wars when growth is low 3. Growth predicts profit margins particularly for low-innovation capacity industries #KentuckyFin2019