Valuation and incentive effects of hurdle rate executive stock options

Traditional executive stock options are often criticized for inherently weak links between pay and performance. Hurdle rate executive stock options represent a viable improvement. However, valuing these options presents extraordinary analytic difficulties. With a constant dividend yield the strike price becomes a path-dependent function of the stock price and exact analytic valuation is intractable. To solve this problem, we apply the Monte Carlo valuation approach developed by Longstaff and Schwartz (Rev Financ Stud 4:113–147, 2001) to estimate the value of path-dependent American options. We also extend the methodology to incorporate the theoretical framework by Ingersoll (J Bus 79:453–487, 2006) to permit subjective valuation influenced by an executive’s risk aversion.

You’re dead to me,but should you be? Using a retail database to classify American malls by occupancy and sales and an extended analysis of dead and dying malls

ABSTRACT

The study uses a shopping center database to classify malls by occupancy and sales. A factor analysis is conducted and reduces the large number of variables to a smaller number of mall constructs. The constructs are used to predict mall group membership by occupancy and sales. The results indicate that population and income are important variables towards mall occupancy and sales. An analysis of dead malls follows in order to produce more novel information for the growing interest in dead and dying malls. It is found through a second discriminant analysis that the prototypical characteristics of dead malls include; smaller in size, less population and lower income market areas. There were varying effects of renovation dates, competition and market age. Overall, the study benefited from examining dead malls more closely and provides more groundwork for future dead mall studies.     

Commodifying the Commodifiers: The Impact of Procurement on Management Knowledge

Current conceptualizations of the commodification of management knowledge prioritize the agency of knowledge producers, such as consultancies, but downplay the role of other actors such as intermediaries. Using a qualitative multi‐method study of the role of procurement in sourcing consultancy knowledge, we demonstrate how intermediaries also commodify management knowledge, thereby limiting the exchange value of that knowledge. Through our analysis we develop a more sophisticated model of the processes and consequences of knowledge commodification. This model clarifies and extends prior research by highlighting the role of commensuration, comparison and valuation, as well as the related tactics that consultants and client managers use to resist procurement's attempts to commodify management knowledge.     

Collaborative Marketing in a Regional Destination: Evidence from Central Florida

This paper aims to explore a collaborative approach to regional destination marketing. Research questions were constructed for empirical data collection via documentary analysis and semistructured interviews with senior executives of destination marketing organizations (DMOs) in the Central Florida region. The research findings suggest that collaboration among DMOs is beneficial in terms of cost reduction and market penetration. Several issues emerge as inhibiting factors to their collaborative destination marketing efforts. Discussions and implications are provided both from a theoretical and practical perspective on the basis of the findings of the study. Copyright © 2012 John Wiley & Sons, Ltd.     

中国《经济》发展联盟《企业诊断》系列讲座之一德西蒙公司如何帮跨国公司改进质量管理?质量创造价值——全球顶级航空制造企业的质量改进案例

项目准备最高管理层全情参与质量改进无论在哪个行业,企业的最高执行官参与产品单件设计的现象都非常少见;而最高执行官参与供应商选择以及基层的其他改进工作的做法更是少之又少。我们只是最近才在航天领域的知名企业通用电气(GE)和霍尼韦尔(Honeywell)公司见到这种由上而下进行“管理层承诺”的做法。本文中提到的这家全球知名的制造业巨头(以下简称B公司)旗下拥有一家大型飞机制造公司和一家大型人造卫星制造公司,两家公司的管理层都以突出的领导能力著称。在他们的带领下,公司的各部门保持了高度的步调一致,为企业的总体战略目标——…     

Treasury auctions: Uniform or discriminatory?

There has been much discussion of the relative merits of selling government bonds using a uniform-price auction rather than the traditional discriminatory-price auction. Arguments in favor of the former have won the day in respect of the newly instituted auctions of index-linked bonds in the USA and UK. This short paper assesses the evidence and concludes that the advantages of uniform-price auctions have been oversold. Received: 28 May 1999 / Accepted: 27 September 1999     

Variety in the video game industry: An empirical study of the Wundt curve

This study analyzes the effect of variety on consumer utility using historical behavioral information for 1,397 consumers participating in 729,049 unique rounds of play. We show that consumers generally exhibit a preference for variety as part of their gameplay utility. The relationship between variety and utility is nonlinear and follows, at least for some types of variety, an inverted u‐shape as predicted by the Wundt curve. Our results represent the first such evidence on the importance of variety in video gaming, which has significant implications for consumption through optimization of gameplay utility to satisfy the demand for variety.     

The october 1979 federal reserve policy shift: An analysis using variance decomposition

Conclusions Subsequent to the announced October 1979 policy shift, many economists voiced doubt about whether the Federal Reserve was sincerely committed to the execution of an NBR's targeting strategy. However, the charge that the central bank continued to accommodate as vigorously after the announced policy shift as before is not borne out by these results. Pre- and post-1979 comparisons of the FFR and NBR decompositions suggest a conscious policy alteration aimed at tightening control over NBR while allowing the FFR to respond to money market conditions.The evidence also indicates continuedM1 endogeneity in the second period, with feedback occurring between this variable and the FFR. While the measuredM1 aggregate used in the VAR's does not allow a precise identification of money demand forces, it is reasonable to relate this endogeneity to the erratic shifts in money demand which are known to have occurred over the 1979–82 period.Thus, while the analysis does indicate the central bank did alter its behavior with respect to the NBR policy instrument, the results do not show the Fed was able to control the volatility ofM1 over the NBR targeting period.Funded by the NTSU Office of Research, grant no. 34475. Ken Smith and Doug McMillin offered helpful comments. The usual caveat applies.     

Researching marketing problems and opportunities with focus groups

Focus group research is a popular and effective qualitative research method for generating ideas and assessing marketing programs and concepts. This article provides marketers with insights about implementing focus groups in the industrial environment. It presents a specific procedure for conducting focus groups, potential industrial applications for the research technique, guidelines for making decisions about selecting moderators, establishing objectives, recruiting study participants, and controlling costs.