Kyuhong Han, Vikas Mittal, & Yan Zhang

Transcription

1 Kyuhong Han, Vikas Mittal, & Yan Zhang Relative Strategic Emphasis and Firm-Idiosyncratic Risk: The Moderating Role of Relative Performance and Demand Instability WEB APPENDIX: ADDITIONAL TABLES TABLE W1 Literature Review on the Role of Demand Instability in Marketing Study Dependent Main Demand Instability Role name Measure a Cui and O Connor (2012) Firm innovation Alliance portfolio resource diversity Moderator Market uncertainty Standard error of slope coefficient b Fang et al. (2016) Abnormal stock returns Marketing alliance structure Control Industry dynamism Coefficient of Fang, Palmatier, and Grewal (2011) Firm performance Firm performance variability Customer asset depth/breadth Innovation asset depth/breadth Moderator Industry dynamism Coefficient of Five-item scale Fang, Palmatier, and Steenkamp (2008) Grewal, Chakravarty, and Saini (2010) Grewal and Tansuhaj (2001) Gruca and Rego (2005) Homburg et al. (2014a) Homburg, Vollmayr, and Hahn (2014b) Tobin s q Service ratio Moderator Industry turbulence Coefficient of Firm performance Market makers governance Moderator Demand uncertainty Four-item scale mechanisms Firm performance after crisis Market orientation Moderator Demand uncertainty Four-item scale Cash flow level Cash flow variability Venture capital fund raising Abnormal stock returns Customer satisfaction Control Demand instability Standard deviation Chief marketing officer (CMO) characteristics Distribution intensity New channel establishment Moderator Demand instability Standard deviation Industry turbulence Coefficient of 1

2 Jindal and McAlister (2015) Bankruptcy risk Advertising assets R&D assets Moderator Market turbulence Standard error of slope coefficient Krasnikov, Mishra, and Orozco (2009) McAlister et al. (2016) Cash flow level Cash flow variability ROA Stock returns Sales Trademarks Control Demand instability Standard deviation Advertising share Control Industry turbulence Coefficient of Nath and Mahajan (2011) CMO power in top management team (TMT) Firm Performance Industry instability Firm innovation TMT marketing experience Responsibility of sales for the CMO Industry instability Standard deviation Srinivasan, Lilien, and Sridhar (2011) c ROA Stock returns Advertising intensity R&D intensity Moderator Industry turbulence Coefficient of Wies and Moorman Number of innovations (2015) c Innovation variety Breakthrough innovation New-to-the-firm innovations Firm initial public offering (IPO) Moderator Demand instability Standard deviation Zhou, Yim, and Tse (2005) Firm performance Product performance Strategic orientation Organizational learning Demand uncertainty Technological turbulence Competitive intensity Demand uncertainty Two-item scale a The measures, other than survey items, are based on industry sales. b The slope coefficient is estimated by regressing industry sales on year (see Keats and Hitt 1988 for details). c Demand instability was not included in the main analyses but in the robustness checks/additional analyses section. 2

3 Positive Strategic Emphasis and Non- Centered s a TABLE W2 Results from the Robustness Checks Idiosyncratic Risk from the CAPM Idiosyncratic Risk from the Three-Factor Model Total Stock Risk as the Dependent RSE b *** *** *** **.001 H1 (+) *** *** *** **.002 H2 (+) *** *** *** ***.001 H3 (+) *** ** *** **.236 H4 (+) *** *** *** **.068 n 13,880 13,880 13,880 13,880 Downside Idiosyncratic Risk as the Dependent Upside Idiosyncratic Risk as the Dependent s Winsorized at the 1% and 99% Level Industry Advertising and R&D Expenditures as Instruments c RSE ** *** *** ***.016 H1 (+).015 * *** ** ***.014 H2 (+).007 *** *** *** ***.004 H3 (+) ** ** *** ** H4 (+).421 ** ** ** **.438 n 13,880 13,880 13,880 13,880 Reference Point Measured as a Weighted Average (α 1=0, α 2=1) d Reference Point Measured as a Weighted Average (α 1=.99, α 2=.01) d Interaction with Service Ratio e Interaction with Goods Dummy e RSE *** *** *** **.010 H1 (+).066 *** **.015 H2 (+).018 *** ***.005 H3 (+) * ** H4 (+).911 * * n 13,799 13,799 13,851 13,860 ***p <.01, **p <.05, and *p <.10 a Rescaling s by additive constants (e.g., mean-centering) leads to changes in coefficient estimates except for the highest order term (Aiken and West 1991). This leads the coefficients for RSE, H1, and H2 to differ compared to those reported in Model 4 in Table 5 of our manuscript. b RSE is the main effect of relative strategic emphasis. c Relative strategic emphasis was instrumented with industry average advertising and R&D expenditures (see footnote 4 in the manuscript). d The weighted average measure follows Greve (2003). e The three-way interactions between strategic emphasis, positive/negative relative performance, and service ratio/goods dummy are in the last two rows (i.e., those for H3 and H4). Note: All hypothesis tests are based on Model 4. 3

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