A piecewise linear model of credit traps and credit cycles: a complete characterization

We reconsider a regime-switching model of credit frictions which has been proposed in a general framework by Matsuyama for the case of Cobb–Douglas production functions. This results in a piecewise linear map with two discontinuity points and all three branches having the same slope. We offer a complete characterization of the bifurcation structure in the parameter space, as well as of the attracting sets and related basins of attraction in the phase space. We also discuss parameter regions associated with overshooting, leapfrogging, poverty traps, reversal of fortune and growth miracle, as well as cycles with any kind of switching between the expansionary and contractionary phases.     

Gender gap in self‐employment: The role of risk attitudes

This paper examines the link between the willingness to take risk and the gender gap in self‐employment in the transition economy, where for decades entrepreneurship was considered a crime. Using rich data on risk preferences and entrepreneurial activities, we show that male–female risk tolerance differential is the main determinant of the gender gap in self‐employment in Ukraine. The decomposition results indicate that up to 38% of the gap can be attributed to this factor. Robustness tests support the validity of the baseline findings by suggesting that the results are not confounded by such factors as being unemployed before starting a current job, having a self‐employed household member, or living in a relatively wealthy household before transitioning to self‐employment.     

Exploring effects of source similarity,message valence,and receiver regulatory focus on yelp review persuasiveness and purchase intentions

This study is among the first to investigate the impact of message, source, and receiver characteristics on user attitudes toward Yelp reviews, with the subsequent impact of these attitudinal evaluations on review persuasiveness. Specifically, it examines the roles of review valence (positive/negative) and sidedness (one-sided/two-sided), as well as perceived similarity with the reviewer, on user perceptions of helpfulness, trustworthiness, and credibility of the review. The study also tests moderating effects of perceived source similarity and user regulatory focus on the relationships among message characteristics, attitudinal variables, and purchase intentions. Our results disconfirm the negativity bias reported in previous studies and indicate that positive reviews are perceived as more trustworthy, credible, and helpful than negative or two-sided reviews. Review helpfulness and credibility, in turn, positively impacts its persuasiveness, with regulatory focus playing a complex nuanced role in the persuasiveness – behavioral intentions relationship. Based on the findings, future research avenues and managerial implications are proposed.     

A re-examination of the “zero is enough” hypothesis in the emergence of financial stylized facts

In recent years, a growing literature has claimed that the market microstructure is sufficient to generate the so-called stylized facts without any reference to the behaviour of market players. Indeed, qualitative stylized-facts can be generated with zero-intelligence traders (ZITs) but we stress that they are without any quantitative predictive power. In this paper we show that in most of the cases, such qualitative stylized facts hide unrealistic price motions at the intraday level and ill-calibrated return processes as well. To generate realistic price motions and return series with adequate quantitative values is out-of-reach using pure ZIT populations. To do so, one must increasingly constrain agents?? choices to a point where it is hard to claim that their behaviour is completely random. In addition we show that even with highly constrained ZIT agents, one cannot reproduce real time series from these. Except in a few cases, first order moments of ZITs never equal real data ones. We therefore claim that stylized facts produced by means of ZIT agents are useless for financial engineering.     

The best-shot all-pay (group) auction with complete information

We analyze an all-pay group contest in which individual members’ efforts are aggregated via the best-shot technology and the prize is a public good for the winning group. The interplay of within-group free-riding and across-group competition allows for a wide variety of equilibria, according to how well groups overcome internal free-riding. In contrast with the existing literature, we derive equilibria of a symmetric model in which multiple agents per group are active. Our findings differ qualitatively from those of the individualistic all-pay auction: rents are not necessarily dissipated in equilibrium, total expected efforts vary across equilibria, and participation is expected to be greater. Moreover, equilibria with greater symmetry of behavior within a group are shown to have more “wasted” effort but also greater payoffs as overall efforts are lower. In contrast to standard economic intuition, free-riding can be beneficial for players as it reduces competition among groups. Examples of asymmetric group contests are also studied.     

Blocked-Error-R 2: A Conceptually Improved Definition of the Proportion of Explained Variance in Models Containing Loops or Correlated Residuals

Bentler and Raykov (2000, Journal of Applied Psychology 85: 125–131), and Jöreskog (1999a, http://www.ssicentral.com/lisrel/column3.htm, 1999b http://www.ssicentral. com/lisrel/column5.htm) proposed procedures for calculating R ² for dependent variables involved in loops or possessing correlated errors. This article demonstrates that Bentler and Raykov’s procedure can not be routinely interpreted as a “proportion” of explained variance, while Jöreskog’s reduced-form calculation is unnecessarily restrictive. The new blocked-error-R ² (beR ²) uses a minimal hypothetical causal intervention to resolve the variance-partitioning ambiguities created by loops and correlated errors. Hayduk (1996) discussed how stabilising feedback models – models capable of counteracting external perturbations – can result in an acceptable error variance which exceeds the variance of the dependent variable to which that error is attached. For variables included within loops, whether stabilising or not, beR ² provides the same value as Hayduk’s (1996) loop-adjusted-R ². For variables not involved in loops and not displaying correlated residuals, beR ² reports the same value as the traditional regression R ². Thus, beR ² provides a conceptualisation of the proportion of explained variance that spans both recursive and nonrecursive structural equation models. A procedure for calculating beR ² in any SEM program is provided.     

Performance Implications of Online Entry Timing by Store-Based Retailers: A Longitudinal Investigation

This paper utilizes Time Series Cross-Sectional (TSCS) Regression techniques to investigate long-term performance effects of the timing of online sales adoption by incumbent bricks-and-mortar retailers. Its findings support the resource-based theory of competitive advantage by showing that firm-specific resource endowments (bricks-and-mortar experience, catalog experience and firm size) determine the success of the order of online entry strategy. The study contributes to the development of strategic theory in the areas of multi-channel retailing and electronic commerce and assists managers in formulating more informed strategic objectives for achieving multi-channel competitive advantage.     

Web-based CSR communication in post-communist countries

In this survey, we investigate the level of web-based CSR communication in selected post-communist countries. Our objective was to identify, analyse and evaluate the scope of web-based CSR communication and the structure of CSR activities communicated by the TOP 100 companies based in the Czech Republic and Ukraine. On the basis of content analysis of the websites of the 100 most important companies (according to the level of revenue) based in each of these countries, we can state that the level of their web-based CSR communication is comparable. It does, however, correspond to the generally low level of CSR communication in post-communist countries. Apart from corporate websites, another popular channel of communication is social networks, in particular, Facebook. As far as the scope of CSR activities communicated is concerned, companies based in the Czech Republic communicate an average of 19 and companies based in Ukraine communicate an average of 18 of the 39 monitored activities. TOP 100 companies operating in these countries communicate economic and environmental responsibility activities in the greatest scope and on the contrary, ethical responsibility activities the least.     

Redefining Boundaries in Families through Social Networking Leisure

The purpose of this study was to explore the influence the use of social networking sites (SNS) for leisure has on boundaries between families and the outside world, as well as boundaries between family members. The family systems theory and the concept of boundaries served as a basis for this study. Seven families (22 individual family members) took part in the study. Group and individual interviews were conducted for this study. The data supported previous research claiming that connection with the outside world was among the major reasons for using SNS. The findings also suggested that families tried to preserve clear boundaries between themselves and the outside world by controlling who can access their accounts, what information can be shared and what is appropriate time to use SNS. The findings also suggested that the boundaries between family members are constantly being redefined to meet the changing realities of technological world.