We determine empirically how the Big Three automakers accommodate shocks to demand. They have the capability to change prices, alter labor inputs through temporary layoffs and overtime, or adjust inventories. These adjustments are interrelated, non-convex, and dynamic in nature. Combining weekly...

The purpose of this study is to reveal the relationship between real earnings management through sales manipulation and firm performance in Chinese A-listed companies. We analyze abnormal operating cash flows to identify real earnings management through sales manipulation. Fixed-effect panel...

We examine whether corporate social responsibility is related to management sales forecast accuracy. More specifically, we question whether firms that present a high social responsibility level commit lower sales forecast errors, as compared to firms that do not meet analogous levels of social...

The researchers sought to evaluate the impact of revenue volatility on the financial performance of the manufacturing companies in Kenya given the anecdotal arguments that point to both positive and negative relationships. Revenue volatility was measured using the coefficient of variation of...

This paper uses a rich weekly price database from the largest supermarket in Uruguay to analyze the relationship among prices, micro-level sales, and business cycle conditions. On average, 7% of products were on sale each month, and we show a positive and statistically significant but small...

Customers are considered to be major stakeholders whose demands and preferences have a strong influence on corporate strategies. In this sense, increased consumer environmental awareness has led to a growing demand for environmentally friendly products which, in turn, has compelled firms to...

We examine the effect of consumer reviews on relative sales of books on Amazon.com and BarnesandNoble.com. We find that 1) reviews are overwhelmingly positive at both sites, but there are more reviews and longer reviews at Amazon.com, 2) an improvement in a book's reviews leads to an increase in...

I propose to use volatility to infer opportunistic insider sales. I argue that insider sales occurring when volatility is low are suspicious and that these suspicious sales are likely to be driven by insiders’ private information for the following reasons. Suppose that insider sales are not...

A major obstacle to wider adoption of the newsvendor model is the difficulty of obtaining its key input---the demand distribution forecast, specifically when the products are new and no historical data are available. In such cases, judgmental forecasting methods are a commonly suggested...

Temporary price reductions (sales) are common for many goods and naturally result in large increase in the quantity sold. We explore whether the data support the hypothesis that these increases are, at least partly, due to dynamic consumer behavior: at low prices consumers stockpile for future...

Recording industry revenue has fallen sharply in the last three years, and some -- but not all -- observers attribute this to file sharing. We collect new data on albums obtained via purchase and downloading, as well as the consumers' valuations of these albums, among a sample of US college...

In this paper, we explore and discuss the effects of sales returns on the retail and E-commerce industry. We also take into consideration the positive and negative impact of sale returns on the minds of consumers as well as retailers. Sales returns in the simplest of terms means merchandise that...

Since the 1998 Master Settlement Agreement between states and the tobacco industry, states have unprecedented resources for programs to reduce tobacco use. Decisions concerning the use of these funds will, in part, be based on the experiences of states with existing programs. We review the...

We empirically analyze the role of e-Commerce and brick-and-mortar retailers in discovering new bestsellers in the book market, using the German market as an example. Using an AR(1)-Process, we find that when a title becomes a bestseller sales increase in e-Commerce and decrease in...

Although typically overlooked, many purchase datasets exhibit a high incidence of products with zero sales. We propose a new estimator for the Random-Coefficients Logit demand system for purchase datasets with zero-valued market shares. The identification of the demand parameters is based on a...

This paper uses data from two online shopping platforms to investigate the impact of an embedded question and answer system on product sales. This research problem is important as online marketplaces are increasingly incorporating the questioning and answering capability. Yet, the economic...

Some economists assert that as valuable works transition from copyrighted status and fall into the public domain they will be underexploited and their value dissipated. Others insist instead that without an owner to control their use, valuable public domain works will be overexploited or...

Forecasting is a necessary and efficient tool that can give a company plenty of competitive advantage. Traditional methods of sales forecasting focused primarily on roll up of committed sales deals display intrinsic weakness due to their monotony of strategy across agreed sales period. This...

In October of 2018, Sears, a U.S. retail giant, filed for bankruptcy. Walmart, the largest U.S. retail operation, recently introduced a new business model whereby on-line orders can be picked up or even delivered. Both events can be seen as part of a major shift away from the traditional...

This study covers the application of asymmetric accuracy metrics in the daily retail sales prediction problem. The paper is focused on the empirical validation of an accuracy metric derived from the newsvendor model. We scrutinize the accuracy metric's advantages and describe its properties....

This empirical study aims to investigate the influence of green marketing strategy on sales growth of green cars in Jordan. The study analyses the data of 332 car dealers during 2010-2014. The results reveal both positive (green product, green promotion and green process) and negative (green...

We show that in successful episodes of export market entry, there are statistically and economically significant post-entry dynamics of quantities, but no post-entry dynamics of markups. This suggests that shifts in demand play an important role in successful entry, but that firms do not use...

Purpose: In nowadays economy, the role of Small and Medium Enterprises (SMEs) is continually increasing as they represent the primary source of employment, economic development, poverty alleviation, new product development, and innovations. The SMEs' growth depends mostly upon its internal...

We empirically analyze the role of e-Commerce and brick-and-mortar retailers in discovering new bestsellers in the book market, using the German market as an example. Using an AR(1)-Process, we find that when a title becomes a bestseller sales increase in e-Commerce and decrease in...

In an RCT, a large retail chain’s CEO sets new goals for the managers of the treated stores by asking them “to do what they can” to reduce the employee quit rate. The treatment decreases the quit rate by a fifth to a quarter, lasting nine months before petering out, but reappearing after a...

Although typically overlooked, many purchase datasets exhibit a high incidence of products with zero sales. We propose a new estimator for the Random-Coefficients Logit demand system for purchase datasets with zero-valued market shares. The identification of the demand parameters is based on a...

Although typically overlooked, many purchase datasets exhibit a high incidence of products with zero sales. We propose a new estimator for the Random-Coefficients Logit demand system for purchase datasets with zero-valued market shares. The identification of the demand parameters is based on a...

"Marketing and sales prioritize AI and machine learning more than any other business department, yet often struggle with how to scale and strategize the opportunities it presents. AI Strategy for Sales and Marketing presents a framework for understanding how AI can boost customer-centricity and...

This paper analyzes weekly scanner data collected for 108 groups at the county level between 2006 and 2014. The data display multi-dimensional weekly seasonal effects that are not exactly periodic but are cross-sectionally dependent. Existing univariate procedures are imperfect and yield...

We examine the impact of liquidity and diversification, taxes, and loss aversion on the informativeness of insider sales following stock option exercise. We do not find evidence of liquidity and diversification influencing post exercise sale decisions, suggesting that option related sales are...

This paper analyzes weekly scanner data collected for 108 groups at the county level between 2006 and 2014. The data display multi-dimensional weekly seasonal effects that are not exactly periodic but are cross-sectionally dependent. Existing univariate procedures are imperfect and yield...

Many firms regularly introduce new products. Before the launch of any new product, firms need to make various operational decisions, which are guided by the sales forecast. The new product sales forecasting problem is challenging when compared to forecasting sales of existing products. For...