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Seminar – Semantic Constellations: The Impact of Subsidiary Naming Strategies on Parent Firms’ Creativity

11:30 - 13:00

Dr Frédéric Godart, INSEAD

Corporate names constitute a major element of the symbolic-strategic management of firms. However, the relevant literature to date has only considered parent firm names in isolation while ignoring cases where the plurality of subsidiary names, or “semantic constellations”, introduces added intricacy to the firm’s shared institutional space with audiences. Observing this gap, we explore evolving perceptual dynamics between the parent’s semantic constellation over time and its core-business creative performance. We identify two mutually exclusive and collectively exhaustive semantic strategies: semantic autonomy, which refers to disaffiliating names of the parent and its subsidiaries for intra-category differentiation; and semantic seeding, or affiliating these names for legitimacy spillover. Using unique panel data of high-end global fashion houses between 1998 and 2010, we find that semantic autonomy enhances the parent’s creativity perception when adopted in moderation (an inverted U curvilinear relationship), whereas semantic seeding consistently devaluates it. These main effects are also shown to be moderated by the parent’s prior social and financial standing in the market, namely its name awareness and affiliation to business groups.



e-Luminate Cambridge Festival 2016

12 Feb 18:30 - 22:30 | 13 Feb 18:30 - 22:30 | 14 Feb 18:30 - 22:30 | 15 Feb 18:30 - 22:30 | 16 Feb 18:30 - 22:30 | 17 Feb 18:30 - 22:30

At the 2016 e-Luminate Cambridge Festival, many iconic buildings will take on a whole new look, and the event offers a unique opportunity to discover the richness and diversity of Cambridge’s iconic buildings and public spaces – literally in a new light!

The outside of Cambridge Judge Business School will be lit up with an exterior lighting project, Illuminating the Heart of Cambridge, and inside the building a sculpture using innovative glass technology, called Mirage, can be seen by the public during office hours.



Seminar – Short Sales Constraints and the Diversification Puzzle

10:00 - 11:30

events-financeandaccounting-229x205Dr Pedro Saffi, Cambridge Judge Business School

Building on Miller (1977)’s short sale constraints insight, we construct a model showing that investors should disagree less about the valuation of a conglomerate than about the valuations of its individual divisions. Disagreement, combined with short-sale constraints, increases asset prices and thereby implies a conglomerate discount. The model provides a wide variety of empirically testable implications about the incidence and size of the conglomerate discount. We test several of these predictions, and find that (i) conglomerates face fewer short sales constraints and have less dispersion of opinion than focused firms, and (ii) the conglomerate discount increases with short sales constraints and decreases with differences of opinion. While we are unable to fully explain the conglomerate discount through proxies of short sales constraints and differences of opinion,
we find that they reduce its magnitude by between 50-70 per cent using matched sample estimates.