Aldo Musacchio

✨ Did you know that many firms have publicly available ratings from banks? Our new RAST paper with Ben Lourie, N. Bugra Ozel, and Chenqi Zhu reveals that bank ratings often deviate from CRA ratings, enhancing predictions of defaults and CRA revisions. These ratings offer valuable insights, supplementing CRA ratings with crucial info. https://lnkd.in/g4735NR5

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Grateful to Nicolai J. Foss and Peter Klein for their thoughtful engagement with our #Call for a #Renewed #Strategy #Paradigm - forthcoming in the Journal of Management Studies (with Tima Bansal, Rodolphe Durand, Markus Kreutzer and Anita McGahan) 🙏🏼 💡 Stay tuned for our Point (hopefully very soon) ... and check another Counterpoint by Jerry Davis and Teddy DeWitt entitled "Can Strategy Address the Climate Crisis Without Losing its Essence?" here: https://lnkd.in/eb3DmatZ In our Point, we argue that the field of strategy should more explicitly embrace the constraints of the natural environment. Abstract: "The field of Strategy has its origins in Business Policy, which emphasized how firms could pursue important social aims that individuals and governments could not pursue otherwise. This emphasis shifted in the 1970s as the field turned towards economics for insights. Strategy scholars began to address how market- and industry-level considerations, such as performance, price, and competition, were pursued by firms. By applying macro-level principles and assumptions analogically to a more micro-level of analysis, strategy scholars inadvertently committed what statisticians call an ecological fallacy. Educators and scholars in the field of Strategy started to accept the constructive consequences of growth, not only for the economy, but for every firm, without considering the implications for society and the natural environment. In so doing, Strategy scholarship inadvertently undermined its very ambition to advance social aims. Our Point advocates for reconsideration of the field’s foundations so as to remediate the ecological fallacy and to address the climate and biodiversity crises. The goal is to offer a brighter and more relevant future for our discipline." It is our hope that this Point-Counterpoint kicks off a constructive scholarly debate about this question. BTW: To state the obvious, I strongly encourage us and especially #PhD students to challenge the core premises and assumptions in Foss & Klein's piece. For example, William Nordhaus got the #Nobel #Prize in #Economics in 2018 for "endogeneizing" the natural environment in economic models: "At its heart, economics deals with the management of scarce resources. Nature dictates the main constraints on economic growth and our knowledge determines how well we deal with these constraints. William Nordhaus’ findings deal with interactions between society, the economy and climate change. In the mid-1990s, he created a quantitative model that describes the global interplay between the economy and the climate. Nordhaus’ model is used to examine the consequences of climate policy interventions, for example carbon taxes." (source: https://lnkd.in/edrDCQFf) #strategy #strategicmanagement #scholarlydebate #research #science #climatechange #IPCC

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The latest anniversary issue of The Foundation Review revisits its most popular articles over the past 15 years. We're honored to have ""Lost Causal: Debunking Myths About Causal Analysis in Philanthropy"" included with an added prologue. Co-authored by Jewlya Lynn, Sarah Stachowiak, and Julia Coffman, this piece takes a critical and necessary look at causal analysis and its role in learning and impact. Revisit it here: https://lnkd.in/gGEWCahU

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🚨 Reminder: The application deadline for the Tufts Certificate in Impact and Sustainable Investing (https://lnkd.in/gJmNqkzH) is August 15th! 📅 Don't miss this opportunity to gain practical skills in driving positive change through investing. If you have any questions or need clarification about the program, I'm here to help! Feel free to reach out and connect. Let's make a difference together! #ImpactInvesting #TuftsCertificate #ApplicationDeadline

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National Workshop on “Teaching of Economics – Emerging Trends and Challenges” Experts call for collective efforts to prepare students to address complex Global economic challenges effectively https://lnkd.in/g4F8gdDq

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Check out this blog by Betty N. Wainaina about the need to reform the international financial architecture. As we approach 2030, the urgency to close the SDG financing gap is critical. Explore her insightful solutions and associated challenges in global finance: https://go.unu.edu/oQsD0 #IFAreform NYU Center on International Cooperation (CIC)

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Thrilled to see our paper on the role of “misfortune” and “mistake” in the demand for high-cost consumer credit published in the Journal of Political Economy. Joint work with Leandro Carvalho and Dan Silverman. In this paper, we collaborated with Meniga to link rich administrative data with information from surveys and experiments, all at the individual level, to assess the influence of “misfortune” and “mistake” in determining the demand for high-cost credit. To my knowledge, this is the first paper to link experimental economic data to comprehensive and high-frequency bank data at the individual level. This approach opens a wealth of opportunities to address many important questions within the economics and finance literature. We are seeing more researchers employing this approach now and I am convinced we will see a lot more in the years to come. The paper can be downloaded here: https://lnkd.in/egtrqiv9

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A thoughtful article on the decline in citations of Informs journals. I am surprised and confused why the impact factor only included citations of recent papers. Strong methodological papers can be cited for decades. These accounting issues aside, there may be another contributing factor… the inexorable upward spiral of theoretical research, and the resulting bias toward stylized problems rather than real applications. David is sensitive to this issue in supply chain research, but it is very hard to fix. Referees like theory, and universities (in the OR community) tend to hire faculty with strong math skills. It is a self-reinforcing process. Working in an engineering school at Princeton, I have always worked close to many colleagues in the physical sciences who stay well grounded by laboratory research which keep them close to real applications. But once you start going down an analytical path, as most (but not all) Informs journals have, it is hard to contain the bias toward favoring more theoretical papers.

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I would like to share an entry in the New Palgrave Dictionary of Economics. I analyze how the discussion on structuralist thought in Latin America and its connection with innovation economics approaches is being revived, as well as the lines of research and researchers who work on https://lnkd.in/g-fvs7xA.

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My short paper on climate risks in corporate bonds is out in Economics Letters. It is available for reading at: https://lnkd.in/ghAJGXNk

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In our new paper, we provide two empirical results: 1. The Federal Reserve's decisions, while not providing new information for professional forecasters and rational investors, act as "information shocks" for overconfident equity investors who rely on the Fed's economic assessments to trade and provide liquidity. 2. Stocks sensitive to these Fed information shocks see increased trading volume, liquidity, and abnormal returns after positive interest rate surprises, especially in firms with high retail investor activity, low institutional holdings, and reduced analyst coverage.

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Our new paper: The assumption that better institutions are favoured in MNEs' location choices has been questioned in terms of whether emerging market MNEs might have different capabilities associated with the institutional conditions in their home country that they may exploit when internationalizing. They might seek to expand both to better institutional environments (institutional substitution) and to other emerging market environments (institutional complementarity). We examine if elements of institutional complementarity and substitution are evident in the internationalization decisions of Indian MNEs, and whether there are boundary conditions or limits attached to the benefits of these two effects. Rishika Nayyar

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Accelerate, Transform, Scale: A New Era in Education R&D with IES’ Seedlings to Scale Please share widely and re-post details about the Seedlings to Scale program from IES, led by Elizabeth Albro, PhD, and Matthew Soldner. The Institute of Education Sciences (IES) aims to lead in expanding knowledge about education outcomes from early childhood to adult education and improving employment and wage outcomes for relevant groups. In Phase One, teams will clarify the problem, refine their solution through stakeholder engagement, and create a detailed R&D plan. They will then use this plan to apply for Phase Two funding by demonstrating their idea's potential and providing a comprehensive development strategy. Phase One projects for Seamless Personalized Education Experiences Delivered at Scale (SPEED at Scale) focus on creating innovative solutions to help teachers effortlessly deliver personalized instruction for PreK-12 students. The Accelerate, Transform, Scale (ATS) Initiative supports education R&D to develop scalable solutions that enhance education outcomes for all learners and eliminate achievement gaps. The ATS Initiative Hub will help establish new ATS programs and assist the Institute of Education Sciences (IES) in coordinating existing programs under this initiative. From Seedlings to Scale (SPEED at Scale Phase One): Funding ranges from $300,000 to $500,000 for a one-year project. ATS Initiative Hub: Funding ranges from $500,000 to $1,500,000 annually, with a total project period of 5 years. Eligible applicants are organizations capable of conducting rigorous research and development. This includes institutions of higher education, as well as non-profit, for-profit, public, and private entities. Erin Mote outlines exciting aspects of this direction:  Faster research cycles Partnerships with industry Emphasis on development Bridging the gap between policy and practice A higher risk profile to encourage innovation This program shows a strong commitment to improving research and development in education. It aims to create a future where we focus on communities, inclusion, and quickly finding out what works best for different people and situations. The program also aims to connect policy and practice. More details and the full request for proposals (RFP) will be available soon. Federal register here https://lnkd.in/eCd3hqGR Alliance for Learning Innovation (ALI), Ed Dieterle, Christina Cipriano, Sara Schapiro, Auditi Chakravarty, Sasha Rabkin, Ed.D, Chris L., Marvin Smith, Robyn Schryer Fehrman, Laura Hamilton, Amanda Bickerstaff, Li Cai, Jeremy Roschelle, Britt Neuhaus, Jennifer Vranek, Brad Bernatek, Jessica Heppen, Alan Coverstone, Kelly Fitzsimmons, James L. Moore III, John Irons, Jonathan Sotsky, Katie Boody Adorno, Winnie Chan, Michelle Michelini, Kimberly Smith, Erika Wentworth, Pamela Cantor MD, Richard Culatta, Julia Fallon, Jennifer Bell-Ellwanger, Tara Czupryk, Virgel Hammonds

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Thanks Ana Simpson for great work. A thorough review of academic literature on intangibles. Excellent effort! And thank you for capturing the gist of my academic papers: 1.      “A Better Estimate of Internally Generated Intangible Capital,” Management Science. 2.      “Should Intangible Investments Be Reported Separately or Commingled with Operating Expenses? New Evidence,” Management Science, 3.      “Why Have Measures of Earnings Quality Changed over Time?”, Journal of Accounting and Economics 4.      “Trivialization of the Bottom Line and Losing Relevance of Losses,” Review of Accounting Studies My coauthors will be proud to have written policy relevant work Shiva Rajgopal, Luminita Enache, PhD, CPA, RN, Rong Zhao, Aneel Iqbal Sections 31, 42, 46, 76, and 77 well summarize our findings. Now, lets hope that IASB can convert the new realizations into new regulations, and a more appropriate accounting framework for modern economy. https://lnkd.in/gweZRjii Michael Mauboussin, Daniel McCarthy, Vijay Govindarajan (VG), Haskayne School of Business, Columbia Business School, American Accounting Association, EAA - European Accounting Association, Canadian Academic Accounting Association, International Accounting Standards Board (IASB), Financial Accounting Standards Board

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🚀 Excited to Share Our Latest Publication! 🚀 I'm thrilled to announce the release of our new research article, "ESG and climate-related risks versus traditional risks in commercial banking: A bibliometric and thematic review," recently published in the Future Business Journal. Our study dives deep into the impact of ESG (Environmental, Social, and Governance) and climate-related risks on traditional banking risks, examining how these emerging risk factors influence credit, market, and liquidity risks. Through a comprehensive bibliometric analysis of 869 articles from the Scopus and Web of Science databases, we've identified key trends, research gaps, and the evolving landscape of sustainable banking. 🔍 Key Insights Include: 11 clusters of banking risks influenced by ESG factors. 10 clusters of banking risks driven by climate-related risks. Identification of research gaps at the intersection of traditional and new banking risks. A thematic evolution of ESG risk in the banking sector. Our findings not only provide valuable knowledge for financial institutions but also open new avenues for future research on integrating ESG and climate-related considerations into risk management frameworks. A big thank you to Zbigniew Korzeb, Paweł Niedziółka, and Danuta Szpilko for their collaborative efforts, insights, and dedication to this project. I'm truly grateful for the chance to work with such talented colleagues. 🙏 This work was made possible thanks to the generous funding from the International Academic Partnership Program no. BPI/PST/2021/1/00011/U/00001 with the Polish National Agency for Academic Exchange. Let’s continue to push the boundaries of sustainable finance and make a real impact in the world of banking! 🌱💼 #ESG #ClimateRisk #SustainableBanking #RiskManagement #BibliometricAnalysis #Research #FutureBusinessJournal

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“Leading Disruptive Innovation in an Uncertain World” Strategic Finance Magazine by Scott D. Anthony (The Tuck School of Business at Dartmouth; Thinkers50) and Mark L. Frigo (DePaul Driehaus College of Business). A conversation with leading thinkers on disruptive innovation and long-term value creation.  CFOs can use the ideas discussed in this article to take a leadership role in creating long-term sustainable value in a rapidly changing and uncertain environment. This article is part of the Creating Long-Term Sustainable Value Creation series launched by the article Creating Long-Term Sustainable Value by Mark L. Frigo and Dominic Barton. #innovation #disruptiveinnovation #valuecreation #change

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We Need a New Story In his deeply reflective book, "The Purpose of Capital," sustainable finance pioneer Jed Emerson offered much-needed historical context for our current quandary. He observed that business and finance have become obsessed in recent years with the how—the quantifiable elements of strategy, execution, and metrics—while losing sight of the why—the positive contributions business might seek to make in the world. He concluded that if we are to get past our current financialized myopia, we must “rediscover the mythology of impact.” As I note in my new book "Beyond Shareholder Primacy," capitalism desperately needs a new myth in this sense—a compelling new story, one that brings out our better angels rather than encouraging only our animal spirits. Sustainability, with its focus on environmental regeneration and social equity, might just represent the new story that people so desperately need. Sustainable business can fill people with a sense of purpose and meaning, enabling employees to become deeply engaged with something that is bigger than themselves. Sustainability can bring with it a quest worthy of peoples’ full professional and emotional commitment: Lifting the poor and serving the needs of everyone while simultaneously regenerating the natural capital that supports all life on earth…and making money to accelerate the pace! Given the fact that business is currently the most powerful institution on the planet, with its outsized role in driving the existential crises we now face, it represents the key leverage point for changing the conversation—not only about the economy, but also with the wider set of cultural, political, educational, and social institutions that perpetuate the current economic era of Shareholder Capitalism. Thirty years from now, people may look back and realize that those who stepped up to lead the transformation to Sustainable Capitalism in our time became the new myth makers for the 21st century—latter-day versions of Adam Smith or Louis Brandeis. What will your role in the new story be? #SustainabilityBusinessStrategy #SustainabilityBusinessBook #GreenerBottomLines #BeyondShareholderPrimacy #ESG #CSR #Sustainability #SustainableCapitalism 

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JUST PUBLISHED in Academy of Management Perspectives! Get article at https://lnkd.in/erikxiyQ Defining and Measuring #Scholarly #Impact and Implications for Practice and Policy-making   1️⃣ Policy and Practice Implications: CSII scores (available at https://lnkd.in/ef_WV5By)  inform, but do not dictate, strategic and operational decisions in business schools. They offer a robust tool for assessing scholarly impact, which can guide resource allocation and reward systems.   2️⃣ Minimizing Gaming Potential: CSII’s design makes it difficult to manipulate because it is based on a wide array of journals and considers the quantity and quality of publications. However, reliance on any single measure can still be problematic.   3️⃣ Internal Funding Decisions: CSII can help business school leaders make informed internal funding decisions by providing insights into the potential and past impact of researchers, groups, and projects.   4️⃣ External Funding Decisions: For external stakeholders, CSII provides a transparent and efficient way to assess and compare the scholarly impact of business schools, aiding in more informed funding decisions.   5️⃣ Enhanced Benchmarking: CSII allows for better benchmarking of scholarly impact, offering a contextualized and temporally sensitive assessment that aligns with management research's specific needs and goals. These insights highlight the importance of using sophisticated and contextualized tools like CSII to enhance the assessment and management of scholarly impact in business schools. AACSB Academy of International Business (AIB) HR Division - Academy of Management Administrative Sciences Association of Canada Africa Academy of Management ANPAD ACEDE (Spanish Academy of Management) British Academy of Management Eastern Academy of Management EFMD Global EUROPEAN ACADEMY OF MANAGEMENT EGOS (European Group for Organizational Studies) GWSB Alumni Iberoamerican Academy of Management International Council for Small Business (ICSB) Indian Academy of Management - INDAM International Association for Chinese Management Research Management Faculty of Color Association (MFCA) MIDWEST ACADEMY OF MANAGEMENT INC Società Italiana di Management The George Washington University The George Washington University School of Business The PhD Project The Strategic Management Society Western Academy of Management (Official Site) Yönetim Akademisi Derneği - Turkish Academy of Management Christopher Bracey Ellen Granberg

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