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We examine the impact of family-based human capital stemming from a chairperson's having siblings vis-à-vis not having siblings on corporate innovation in Chinese family firms. Using hand-collected data, we document that when a firm has a sibling-chairperson, it holds more patents, receives more total citations to its patents, and has greater innovation efficiency and innovation quality than an otherwise equivalent firm with a chairperson having no siblings. The results are economically significant and robust to a battery of robustness checks. Specifically, the findings remain intact after using China's one-child policy as an exogenous shock to apply a regression discontinuity research design to mitigate endogeneity. Additional analyses suggest that the mechanisms behind the impact of siblings on innovation are consistent with family-based human capital embedded in the sibling relationships such as competition, knowledge spillover, and family firm succession effect among siblings. Furthermore, we show that sibling comanagement and sibling gender diversity matter in corporate innovation. In addition, sibling effect enhances corporate investment efficiency, stock returns, and merger and acquisition performance. Overall, family-based human capital from siblings positively contributes to corporate innovation. This paper was accepted by Victoria Ivashina, finance. Funding: The authors acknowledge financial support from the National Natural Science Foundation of China [Grants 72225005 and 72202249] and the China Postdoctoral Science Foundation [Grant 2022M713658]. Supplemental Material: Data are available at https://doi.org/10.1287/mnsc.2023.4965. [ABSTRACT FROM AUTHOR]

Cybersecurity breaches pose a substantial concern in the digital era. We investigate how customers respond to multiple unexpected data breaches of their information in India. Difference-in-differences estimates show that digital payments declined by 9% relative to cash payments immediately after an unexpected data breach in a food delivery platform, but the gap disappeared three months later. Customer entry and exit also exhibit weak, short-lived changes. Additional analyses on bank and online grocery data breaches uncover even weaker effects of data breaches. Our findings imply that the perceived benefits of convenience outweigh the costs of payment security risks. This paper was accepted by David Sraer, finance. Funding: This work was supported by the MOE (Ministry of Education in China) Project of Humanities and Social Sciences [Project 20YJC790183], National University of Singapore [Start-Up Grant A-0003870-00-00], the National Natural Science Foundation of China [Grant 72150004], and the National Nature Science Foundation of China [Grant 72203112]. Supplemental Material: The online appendices and data are available at https://doi.org/10.1287/mnsc.2021.01335. [ABSTRACT FROM AUTHOR]

Based on a representative sample of consumer financial transaction data, this paper studies the consumption and savings response to a 2015 permanent increase in the marginal income tax of the high-income taxpayers. Using difference-in-differences regressions, controlling for individual and time fixed effects, we show robust results that the affected consumers experienced little change in their spending. The pattern is prevalent across consumer demographics and is found even among consumers who are sophisticated, have high levels of debt, or register little income changes. Furthermore, the tax increase financed fiscal redistribution leads to a long-lasting increase in the consumption of the lower-income population. This paper was accepted by Lukas Schmid, finance. Funding: The authors gratefully acknowledge financial support from Social Science Research Thematic Grant in Singapore [Future-Proofing Singapore: An Economic Approach MOE2019-SSRTG-024]. Supplemental Material: The data files are available at https://doi.org/10.1287/mnsc.2023.4823. [ABSTRACT FROM AUTHOR]

Despite a large minimum wage literature that analyzes employee outcomes, there is less evidence on firm performance, prices, and quality. Exploiting staggered changes in U.S. minimum wages during 2000–2008 and census data on more than 29,000 hotel properties, we find that doubling the minimum wage as currently debated would reduce average hotel revenues by 6% per year and their occupancy rates by 3.1%. Responses vary by employer quality and organizational form. Although luxury hotels pass through cost increases to their customers with no impact on their revenues, upscale hotels facing more price-sensitive customers reduce prices but still suffer losses in occupancy rates and revenues as they struggle with preserving the expected quality level. They are also most likely to see quality downgrades from their segment. The lower-end hotels also pass through cost increases to their customers but, unlike luxury hotels, face significant declines in occupancy rates and revenues. Overall, the performance effects of minimum wage increases are nonmonotonic across quality. We also find negative impacts on hotel entry rates, although the performance and entry effects appear to be short lived. Furthermore, the negative effects of minimum wages dominate in states without right-to-work regulation, suggesting the need for a more comprehensive approach to labor market regulation. This paper was accepted by Victoria Ivashina, finance. Funding: M. Ayyagari received financial support from National Science Foundation Research (U.S) [Grant SES-1660755/1660749]. Supplemental Material: The data files are available at https://doi.org/10.1287/mnsc.2022.4650. [ABSTRACT FROM AUTHOR]