The power of positivity? The influence of positive psychological capital language on crowdfunding performance

We extend the entrepreneurship literature to include positive psychological capital — an individual or organization's level of psychological resources consisting of hope, optimism, resilience, and confidence — as a salient signal in crowdfunding. We draw from the costless signaling literature to argue that positive psychological capital language usage enhances crowdfunding performance. We examine 1726 crowdfunding campaigns from Kickstarter, finding that entrepreneurs conveying positive psychological capital experience superior fundraising performance. Human capital moderates this relationship while social capital does not, suggesting that costly signals may, at times, enhance the influence of costless signals. Post hoc analyses suggest findings generalize across crowdfunding types, but not to IPOs.     

Should sequels differ from original movies in pre-launch advertising schedule? Lessons from consumers' online search activity

Sequels have become a profitable strategy in the U.S. motion picture industry because of their strong name recognition. However, while the established positioning of a sequel may help insulate it from competing firms' advertising messages, its familiarity may cause moviegoers to be more easily satiated with advertising from the sequel. Therefore, this study examines how sequels differ from original concept movies in terms of their ad effectiveness. We focus our analysis on pre-launch periods, given these periods' importance in shaping the financial outcomes of motion pictures. We consider the weekly online search volume of a movie as a measure of consumer interest in it, and thus as an intermediate response to pre-launch advertising. We then develop a model that assumes ad effectiveness can decline, due to copy and repetition wearout, and increase, due to forgetting, over time. We find that copy wearout is greater for original movies, while repetition wearout and forgetting are greater for sequels. These findings suggest that sequels should allocate more in early pre-launch periods and less immediately before release, relative to originals, to maximize pre-launch consumer interest.     

Realized extreme quantile: A joint model for conditional quantiles and measures of volatility with EVT refinements

We propose a new framework exploiting realized measures of volatility to estimate and forecast extreme quantiles. Our realized extreme quantile (REQ) combines quantile regression with extreme value theory and uses a measurement equation that relates the realized measure to the latent conditional quantile. Model estimation is performed by quasi maximum likelihood, and a simulation experiment validates this estimator in finite samples. An extensive empirical analysis shows that high‐frequency measures are particularly informative of the dynamic quantiles. Finally, an out‐of‐sample forecast analysis of quantile‐based risk measures confirms the merit of the REQ.     

Economic Targeting of Agricultural Beneficial Management Practices to Address Phosphorus Runoff in Manitoba

The mechanisms used to deliver agricultural beneficial management practices (BMPs) can influence the performance of these policies. Research has suggested that agri‐environmental instruments targeted based on specific economic or environmental characteristics can improve policy performance. Using a case study approach, we evaluate the relative performance of different mechanisms to target subsidized water retention pond BMPs to reduce phosphorus (P) runoff in an agriculture dominated subwatershed within the Lake Winnipeg watershed in southern Manitoba. The water retention pond BMPs were targeted based on estimated establishment costs (cost targeting), total phosphorus removal from surface water (benefit targeting), and pond‐specific benefit–cost ratios. The targeting was simulated using predictions of retention pond‐specific P removal from an adapted hydrology model and site‐specific pond construction and land opportunity costs assembled in a geographic information system database. Targeting of water retention pond BMPs has an impact on the cost effectiveness of the policy delivery with benefit–cost targeting being the most cost‐effective approach. Water retention ponds providing higher P removal at lower cost were smaller in size and on land previously used for the production of lower value crops. Le ciblage économique des pratiques de gestion bénéfiques en agriculture pour remédier au ruissellement du phosphore au Manitoba Les mécanismes utilisés pour livrer des pratiques de gestion bénéfiques (PGB) peuvent influencer la performance de ces politiques. Des études suggèrent que le ciblage d'instruments agroenvironnementaux basé sur des caractéristiques économiques ou environnementales précises peut améliorer la performance des politiques. Au moyen d'études de cas, nous évaluons la performance relative de divers mécanismes pour cibler les PGB des bassins de rétention d'eau subventionnés pour réduire le ruissellement de phosphore (P) dans un sous‐bassin du bassin du Lac Winnipeg au sud du Manitoba. Les PGB du bassin de rétention des eaux ont été ciblées en fonction des coûts estimés d'établissement (ciblage des coûts), de l′élimination totale du phosphore de la surface de l'eau (ciblage des bénéfices), et des ratios avantages‐coûts liés au bassin. Le ciblage fut simulé au moyen de prédictions du taux de suppression de P spécifique à chaque bassin de rétention obtenues à partir d'une adaptation d'un modèle hydrologique et d'une base de données d'un système d'information géographique (SIG) contenant les sites de chaque bassin de rétention et le coût d'opportunité du terrain. Le ciblage des PGB des bassins de rétention d'eau a un impact sur la rentabilité de la mise en ?uvre de politiques, le ciblage coût‐avantages étant l'approche la plus rentable. Les bassins de rétention d'eau ayant le plus haut taux d'élimination de P à moindre coût s'avéraient plus petits et sur des terrains ayant servi, auparavant, à la production de cultures de moindre valeur.     

Renters,landlords, and farmland stewardship

Are farmers better stewards of the land they own than the land they rent from others? We answer this question using a data set that identifies Ontario farmers’ conservation practices on their own land as well as the land they rent. Using a fixed‐effects regression approach, we find that the role of tenure varies for different types of conservation practices. Farmers were found to be just as likely to adopt a machinery‐related practice such as conservation tillage on their rented land as that land which they own. On the other hand, farmers were found to be less likely to adopt site‐specific conservation practices such as planting cover crops on rented land. However, this effect diminishes as the expected length of the rental relationship increases when the landlord has a farming background.     

Capital gains lock-in and governance choices

Differences in accrued gains and investors’ tax-sensitivity induce variation in a capital gains lock-in effect across mutual funds even for the same stock at the same time. Exploiting this variation, we show this effect influences funds’ governance decisions: higher capital gains decrease the likelihood a fund exits prior to contentious votes and increase the likelihood a fund votes against management. Consistent with tax motivation, these findings are concentrated among funds with tax-sensitive investors. Further, high aggregate capital gains across funds holding a stock predict a higher likelihood management loses a vote and a lower likelihood a contentious vote is proposed.     

The scope and scale of the informal food economy of South African urban residential townships: Results of a small-area micro-enterprise census

Growing urbanisation in South Africa is reflected in burgeoning Working class and informal township settlements on the fringes of its major towns and cities. Paired with this is an increasing reliance on cash as the primary means of economic transaction, which has in turn stimulated the growth of micro-enterprise business activities within the township context. This article discusses the findings of an eight-township small-area census which occurred between 2010 and 2013 in Cape Town, Johannesburg, Ekurhuleni and Durban townships representing 250 000 residents. The researchers were able to establish the scope and scale of informal food and drink retailing in these localities. Of the 10 049 micro-enterprises located in the study, some 3966 (or 39% of the total) trade in food. These include enterprises in primary production, fresh produce retailing, grocery retailing from house and spaza shops, and informal foodservice enterprises. Food is the basis for much township informal business and plays an important role in making food increasingly affordable and locally accessible, and in creating cash employment. The article builds on the knowledge base of the township informal economy role in bolstering food security needs for the marginalised.     

Cost Analysis of Calcium in Store Brand versus National Brand Grocery Products

Objective: This study was to determine if calcium fortification yields a higher price per serving in grocery store products. Researchers compared store brand to national brand grocery products in relation to cost in order to examine if calcium values were similar between store brand and national brand products. Methods: A total of 112 store brand and 211 national brand grocery products were collected from three low (national chain store), middle and high priced (Virginia and North Carolina regional store) grocery venues. Products were compared using price and calcium percentage per serving. ANOVA was used to determine between store brand and national brand for price per serving and calcium content, and between grocery venues. Results: National brand fortified products had a significantly lower mean price per serving when compared to national brand non-fortified products (p = 0.0002). There was no statistical difference between store brand fortified and non-fortified products (p = 0.9256). Low priced store brand products had the lowest mean price per serving ($0.34 ±0.24). Conclusions: This study found store brand products have similar calcium content as national brand products. Product cost was lower at low priced store compared to middle and high priced stores.     

The importance of consumer multihoming (joint purchases) for market performance: Mergers and entry in media markets

Consumer “multihoming” (watching two TV channels, or buying two news magazines) has surprisingly important effects on market equilibrium and performance in (two‐sided) media markets. We show this by introducing consumer multihoming and advertising finance into the classic circle model of product differentiation. When consumers multihome (attend more than one platform), media platforms can charge only incremental value prices to advertisers. Entry or merger leaves consumer prices unchanged under consumer multihoming, but leaves advertiser prices unchanged under single‐homing: Multihoming flips the side of the market on which platforms compete. In contrast to standard circle results, equilibrium product variety can be insufficient under multihoming.