Watching online videos interactively: the impact of media capabilities in Chinese Danmaku video sites

In China, the implementation of a Danmaku social media system to sustain and raise user interest in online video sites is an increasingly widespread phenomenon. Danmaku technology is used to display users’ messages in written text on the online video stream. Little is known about the effects of this form of interactive enhancement. The aim of this empirical study is to evaluate the evolving media capabilities of the Danmaku system and their effects on users’ perceptions of interactivity and their intentions to continue using Danmaku. We draw on media synchronicity theory and apply it to a stimulus-organism-response model. Using this framework, we hypothesize that the media capabilities of the Danmaku system, namely its transmission velocity, parallelism, symbol sets, rehearsability, and reprocessability, elicit increased interactivity, which influences users’ instantaneous intentions to share and to continue the use of the Danmaku system. The results showed that both users’ instantaneous intention to share and their intention to continue to use were significantly affected by the perceived interactivity. Unlike the results of previous studies, our findings showed that all five media capabilities positively affected the users’ perceptions of interactivity. The potential theoretical and practical implications of our findings are discussed.     

The effects of leadership change on team escalation of commitment

Although teams benefit from developing plans and processes that boost efficiency and reduce uncertainty, they may become too attached to these plans and escalate commitment when an alternative response is needed. Drawing on theories of team leadership, team processes and escalation of commitment, we propose that a change in leadership can help the team reduce commitment to outdated plans and avoid further escalation over time. Across two studies, we tested and found support for our hypotheses and provide evidence that leadership change can break the cycle of escalation by enhancing leader-driven team reflection and refocusing the team on error correction instead of additional investment. We discuss how the results of these studies extend existing theory and add to our understanding of the important role leaders play in enhancing team adaptation and preventing team escalation.     

The impact of acquisitions on firm performance: A review of the evidence

This paper presents a review of empirical research on the impact of acquisitions on firm performance. The evidence suggests that, in the short run, acquisitions have at best an insignificant impact on shareholder wealth. Long‐run performance analysis reveals overwhelmingly negative returns, while the evidence using accounting performance measures is mixed. The review also examines the impact of bid characteristics on performance. The acquisition of hostile targets, transactions that are paid for with cash and acquisitions of larger targets are associated with superior (or at least less negative) performance, while there is mixed evidence on the benefits of related acquisitions. A number of recent studies find that acquirers with superior pre‐bid performance tend to experience significant underperformance in the post‐bid period.     

Dynamic Global Games of Regime Change: Learning,Multiplicity, and the Timing of Attacks

Global games of regime change—coordination games of incomplete information in which a status quo is abandoned once a sufficiently large fraction of agents attack it—have been used to study crises phenomena such as currency attacks, bank runs, debt crises, and political change. We extend the static benchmark examined in the literature by allowing agents to take actions in many periods and to learn about the underlying fundamentals over time. We first provide a simple recursive algorithm for the characterization of monotone equilibria. We then show how the interaction of the knowledge that the regime survived past attacks with the arrival of information over time, or with changes in fundamentals, leads to interesting equilibrium properties. First, multiplicity may obtain under the same conditions on exogenous information that guarantee uniqueness in the static benchmark. Second, fundamentals may predict the eventual fate of the regime but not the timing or the number of attacks. Finally, equilibrium dynamics can alternate between phases of tranquility—where no attack is possible—and phases of distress—where a large attack can occur—even without changes in fundamentals.     

Deciding between GARCH and stochastic volatility via strong decision rules

The GARCH and stochastic volatility (SV) models are two competing, well-known and often used models to explain the volatility of financial series. In this paper, we consider a closed form estimator for a stochastic volatility model and derive its asymptotic properties. We confirm our theoretical results by a simulation study. In addition, we propose a set of simple, strongly consistent decision rules to compare the ability of the GARCH and the SV model to fit the characteristic features observed in high frequency financial data such as high kurtosis and slowly decaying autocorrelation function of the squared observations. These rules are based on a number of moment conditions that is allowed to increase with sample size. We show that our selection procedure leads to choosing the model that fits best, or the simplest model under equivalence, with probability one as the sample size increases. The finite sample size behavior of our procedure is analyzed via simulations. Finally, we provide an application to stocks in the Dow Jones industrial average index.