IACMR Research Seminar Series Session #39
Title: Information-based competition: the case of rival common owners in rating agencies
Speaker: Wei Shi, University of Miami
When: 9:00- 10:15 am, August 30, 2023 (China Time, UTC+8)
Registration link: https://www.xcdsystem.com/iacmr/forms/index.cfm?ID=jzBQR07
Although information intermediaries have the ability to shape firms’ competitiveness through stakeholders’ assessments, little is known about the forces that affect the role of information intermediaries in competitive dynamics. This study extends competitive dynamics research by theorizing how and when information on a firm and its rivals may be shaped by outside competitive forces operating through information intermediaries. We argue that institutional investors of rating agencies can influence those agencies to disclose less favorable ratings of firms that compete with the investors’ portfolio firms, elevating the investors’ portfolio firms’ competitive positions. In support, we find that firms receive less favorable ratings from rating agencies in which their rivals’ institutional investors have more ownership. Further, we show that this relationship is contingent on reputation threats faced by the firms and their rivals as well as the type of institutional investor. Our study illuminates the hidden role that investors can play in information-based competition.
Wei Shi is a Professor of Management and Cesarano Faculty Scholar at Miami Herbert Business School, University of Miami. He obtained his MBA from Tulane University and PhD in business administration from Rice University. His primary research interest focuses on the influence of corporate governance actors and upper echelons on strategic decisions. He has taught courses on strategic management, corporate strategy, strategic governance, and corporate governance. He coauthored the book entitled “Understand and managing strategic governance.” His research has been published at outlets such as Administrative Science Quarterly, Academy of Management Journal, Strategic Management Journal, Organization Science, Journal of Management, Journal of Management Studies, and Production and Operations Management, and covered by Harvard Business Review and the Wall Street Journal. He is an associate editor of Journal of Management and sits on the editorial boards of Strategic Management Journal, Organization Science, Journal of International Business Studies, and Global Strategy Journal. He currently serves as a board member of International Corporate Governance Society and advisor to VeriStell Institute.