Explaining the effect of financial development on the quality of property rights

Empirical evidence suggests that financial development can catalyze property rights reforms. This paper offers a theory of financial markets to explain these facts defining the relationship. The explanation is based on a simple trade‐off between the costs and the benefits of securing property. Securing the right to property at a cost allows agents to post collateral against loans. However, the benefits of collateral vary according to the existing credit market conditions, which we take into account in the tradeoff between the costs and the benefits of securing property rights along the path of financial development to explain the conditions under which financial development can create incentives for better property rights institutions.     

Non-coercive influence: Scale development and validation based on resource and relational paradigms

To overcome competition in an increasingly network dependent market, retailers are required to influence upstream channel partners while sustaining relationships. However, the contemporary supply chain literature has not sufficiently leveraged the resource and relational paradigms to examine influence. Grounded on resource dependency theory and commitment-trust theory paradigms, this study describes conceptualization and operationalization of a 12-item scale for measuring non-coercive influence on upstream channel partners in retail supply chain management (R-SCM) context. The study is based on responses from 547 retail professionals in India obtained over four successive surveys. Psychometric properties were assessed using exploratory factor analysis (EFA) and confirmatory factor analysis (CFA). The proposed scale demonstrates construct validity. Invariance-testing carried out over 4-levels of increasingly demanding equivalence confirmed cross-validation. Nomological validity of the scale was tested by evaluating association with suppliers’ intention to cooperate. The results indicate existence of three dimensions of non-coercive influence: collaborative intent, market intelligence dissemination, and operational support. Retailers can use the scale to assess their personnel's non-coercive influence behavior over suppliers.     

Anticorruption reforms,tax evasion,and the role of harassment

We examine the impact of anticorruption reforms on tax evasion when corruption and potentially harassment are endemic among tax auditors. We find that the threat of harassment may counterintuitively boost the impact of such anticorruption reforms on tax evasion and also eliminate corruption. Specifically, a moderate anticorruption policy can discontinuously reduce tax evasion to a level even below that under no corruption. Further strengthening of such policy can nonetheless prove counterproductive and increase tax evasion. On the contrary, in the absence of harassment, a moderate anticorruption reform induces higher tax evasion and sustenance of bribery. In this case, only a large reform can reduce tax evasion and eliminate corruption.     

Order Flows,Investor Sentiments and Feedback Trade in Index Futures Market

This paper examines the presence of feedback trading, and investor sentiment drove feedback trading by traders in the Nifty 50 index futures contract in India. The results of the study using high-frequency data sampled at 10 min interval using VAR and contemporaneous VAR model as applied to market microstructure settings reveals negative evidence of feedback trade and investor sentiment-driven feedback trade in Nifty 50 futures contract. Further, consistency with noise trading hypothesis, order flows in Nifty 50 futures contract is less informative when traders are overly optimistic.

     

Friend or Foe? The effects of contingent employees on standard employees' work attitudes

Using data from a large-scale national survey of employers and employees in Britain, we examine the impact of the presence of contingent employees on work attitudes of standard (full-time, indefinite-term) employees. Drawing on differing explanations for the increased use of contingent employment arrangements, we derive competing hypotheses about how this use affects standard employees' work perceptions and attitudes, and explore the impact of a number of potentially intervening factors. We find that contingent employees have little effect on standard employees' perceptions of work overload, but strongly reduce perceived job security, which in turn, mediates the negative effects of contingent employees on job satisfaction and organizational loyalty.     

Impatience implication of weakly Paretian orders: Existence and genericity

We study order theoretic and topological implications for impatience of weakly Paretian, representable orders on infinite utility streams. As a departure from the traditional literature, we do not make any continuity assumptions in proving the existence of impatient points. Impatience is robust in the sense that there are uncountably many impatient points. A general statement about genericity of impatience cannot be made for representable, weakly Paretian orders. This is shown by means of an example. If we assume a stronger sensitivity condition, then genericity obtains.     

A study of biotechnology start-ups undergoing leadership change: Antecedents of change and endogenous performance consequences

One of the most important decisions that a new biotechnology firm faces is whether to replace its founding CEO, who often has been involved with the invention of the firm's core technology, with a more professional manager, who has broader commercialization skills to help the firm to grow into a viable business. In this paper, we argue that leadership change away from the founding CEO is influenced strongly by the interests of key stakeholders and that the endogeneity inherent in the change (or non-change) influences firm performance. As the context surrounding decision-making changes from pre-patent to post-IPO, key stakeholders often may not view what is best for the firm and best for self-interest in the same way. Using data on change in leadership at 135 U.S. biotechnology equipment firms, we find evidence that the context in which decisions are being made influences which of the various competing interests will take precedence. The results further confirm the importance of controlling for endogeneity in decision-making when examining firm performance.     

Softlifting: A model of motivating factors

Softlifting (software piracy by individuals) is an unethical behavior that pervades today's computer dependent society. Since a better understanding of underlying considerations of the behavior may provide a basis for remedy, a model of potential determinants of softlifting behavior is developed and tested. The analysis provides some support for the hypothesized model, specifically situational variables, such as delayed acquisition times, and personal gain variables, such as the challenge of copying, affect softlifting behavior. Most importantly, the analysis indicated that ethical perception of softlifting has no significant affect on softlifting behavior. These findings suggest major implications for both software manufacturers and academicians attempting to reduce piracy behavior through ethics instruction.Penny Simpson is an assistant professor of marketing at Northwestern State University in Natchitoches, Louisiana. She has published articles in several regional and national proceedings.Debasish Banerjee is an assistant professor of computer information system at Northwestern State University. He has published several articles in national and regional proceedings and is currently working on several articles concerning ethics and computing personnel.Claude Simpson is an associate professor of computer information systems at Northwestern State University. He has published numerous articles in journals and proceedings, several monographs, and is currently working on his third textbook.     

Trading in derivatives when the underlying is scarce

Regulatory restrictions and market frictions can constrain the aggregate quantity of long and short positions in a security. When these constraints bind, we refer to the security as scarce, and its price becomes distorted relative to its value in a frictionless market. We show that an otherwise redundant derivative can reduce the price distortion of the underlying security by relaxing its scarcity. We also show that it is especially important to analyze the underlying and derivative markets jointly when evaluating the impact of regulation, such as short-sales bans and position limits in derivatives, that restricts trade.     

Managerial incentives and corporate control auctions

An analysis of the sequence of bidding in corporate control contests involving white knights reveals a category of white knights termed as ‘delayed bid’ white knights who make their bid after two consecutive hostile bids. The ‘immediate bid’ white knights make their bid in relative haste after the first hostile bid. Overpayments by white knights are much larger for the ‘immediate bid’ white knights. An analysis of the respective compensation packages shows that the managers of the ‘immediate bid’ white knights have a lower proportion of their income linked to stock value (relative to their annual cash income) compared to ‘delayed bid’ white knights and hostile bidders.