Global B-School Research

A look at recent research by Cox School faculty

Financial Market Regulation: New York vs. the World
Is New York becoming uncompetitive vis-à-vis other global financial centers such as London? New evidence proves that certain regulations are in fact valued by markets and investors, and that over-regulation is not the source of America’s woes for foreign firms coming to the U.S. Novel research by Finance Chair Darius Miller of SMU Cox and co-authors shows that an attempt to enhance U.S. competitiveness by relaxing regulations for foreign firms listing in the U.S. has had the opposite effect. (Forthcoming in Journal of Financial Economics)

Smarter and More Modern Ways to Pay for Infrastructure
Given the deficits of state and federal budgets, bringing the private sector into the financing equation through public-private partnerships (PPP) makes more sense. Certain types of infrastructure projects illustrate the challenge of funding, implementation and the need for private sector involvement. As a new form of public-private partnership, U.S. and global capital markets can offer a viable source of funds, promote better governance, and bring transparency to the infrastructure challenge. (The unpublished opinion piece by Distinguished Finance Professor Andrew Chen and co-author Jennifer Warren is available upon request.)

Generous Unemployment Benefits Reduce Entrepreneurial Activity
While unemployment benefits are helpful to cushion the blow of job loss, overly generous benefits reduce the incentive for new start-ups. This is worrisome given their multiplier effect. The authors show that a 0.1% GDP increase in benefits reduces the share of entrepreneurs by 3%; of a population of 200 million that’s at loss of 600,000 start-ups. With entrepreneurs employing two or more people, 1,200,000 jobs could conservatively be lost -- all of the adults in the city of Houston. This calculation excludes other indirect effects of unemployment benefits for established firms. The study by Entrepreneurship Chair Maria Minniti and co-author Philipp Koellinger is forthcoming in Economic Letters. (Paper and summary can be requested.)

Innovation and Imitation: How Entrepreneurs Impact Economic Growth
Most governments are in hot pursuit of growth or soft landing policies to lessen the effects of recession and financial crisis. Spending in research and development (R&D) and the innovation it brings is often a target for growth. But what can be learned from China’s economic miracle, with scant R&D spending? SMU Cox Professor Maria Minniti and co-author shatter some myths about entrepreneurs, innovation, and the growth of an economy -- with lessons for policymakers.

The Price Women Pay
As their numbers grow, women are increasingly making pricing decisions in the professions. But the role gender plays in the income-gender disparity is still not well understood. A new study on gender and how it impacts pricing decisions helps explain a piece of the puzzle about the income gap between men and women. Management Professor John Slocum of SMU Cox and co-authors explain why women’s salary gaps are still widening compared to men.

New Ideas Needed for 2009? Try Brainwriting
Generating creative ideas is critical for organizations given the challenging business and economic climate. A different approach to generate novel ideas may bring employees, managers and the customers they serve out of the doldrums. SMU Cox Management Professor Peter Heslin shows how the technique of brainwriting may prove useful for organizations searching for breakthrough ideas or simply a better way forward.

http://www.cox.smu.edu/article/research/research.do