What is the role of Knowledge Management Systems (KMS) for a firm's innovativeness and absorptive capacity (ACAP)? Research shows that a firm's capacity to acquire and utilise relevant knowledge, i.e., its absorptive capacity, is decisive for innovation success. We develop a theoretical model...

Abstract The production network under examination consists of a number of workstations. Each workstation is a parallel configuration of machines performing the same kind of tasks on a given part. Parts move from one workstation to another and at each workstation a part is assigned randomly to a...

We consider the random conductance model where the underlying graph is an infinite supercritical Galton–Watson tree, and the conductances are independent but their distribution may depend on the degree of the incident vertices. We prove that if the mean conductance is finite, there is a...

This paper evaluates numerous diversification strategies as a possible remedy against widespread costly investment mistakes of individual investors. Our results reveal that a very broad range of simple heuristic allocation schemes offers similar diversification gains as well-established or...

We analyze whether the diversification discount is driven by the book value bias of corporate debt. Book values of debt may be a more downward biased proxy of the market value of debt for diversified firms, relative to undiversified firms, as diversification leads to lower firm risk. Thus,...

Previous research indicates that a lack of financial sophistication might explain the past strong growth in active management. We construct an objective financial literacy score and analyze the relation between financial literacy and mutual fund investment behavior. We show that there is a...