IDEAS home Printed from https://ideas.repec.org/a/bla/stratm/v26y2005i9p791-808.html
   My bibliography  Save this article

Managerial foresight and attempted rent appropriation: insider trading on knowledge of imminent breakthroughs

Author

Listed:
  • Gautam Ahuja
  • Russell W. Coff
  • Peggy M. Lee

Abstract

In order to establish a competitive advantage, firms must acquire or create resources at a price below their value in use. Absent pure luck, this requires managers to exercise foresight about a resource's future value and/or complementarities with pre‐existing capabilities. This foresight grants managers the opportunity to exploit information asymmetries for personal gain as well as building organizational capabilities. Nevertheless, there is limited research on the extent of foresight or how managers use it. In our study of insider trading, we found that managers purchase stock well before breakthrough patents are filed. We argue for further research on the extent of managerial foresight and how it affects rent generation and appropriation. Copyright © 2005 John Wiley & Sons, Ltd.

Suggested Citation

  • Gautam Ahuja & Russell W. Coff & Peggy M. Lee, 2005. "Managerial foresight and attempted rent appropriation: insider trading on knowledge of imminent breakthroughs," Strategic Management Journal, Wiley Blackwell, vol. 26(9), pages 791-808, September.
    • Handle: RePEc:bla:stratm:v:26:y:2005:i:9:p:791-808
    DOI: 10.1002/smj.474
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/smj.474
    Download Restriction: no
    File URL: https://libkey.io/10.1002/smj.474?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:stratm:v:26:y:2005:i:9:p:791-808. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1111/0143-2095 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.