What factors drive the price–rent ratio for the housing market? A modified present-value analysis

We consider which factors determined the price–rent ratio for the housing market in 18 U.S. metropolitan statistical areas (MSAs) and at the national level over the period of 1975–2014. Based on a present-value framework, our proposed empirical model separates the price–rent ratio for a given market into unobserved components related to the expected real rent growth and the expected housing return, but is modified from standard present-value analysis by also including a residual component that captures non-stationary deviations of the price–rent ratio from its present-value level. Estimates for the modified present-value model suggest that the present-value residual (PVR) component is always important and sometimes very large at the national and MSA levels, especially for MSAs that have experienced frequent booms and busts in the housing market. In further analysis, we find that house prices in MSAs that have larger PVR components are more sensitive to mortgage rate changes. These are also the MSAs with less elastic housing supply. Also, comparing our results with a recent statistical test for periodically-collapsing bubbles, we find that MSAs with large estimated PVR components are the same MSAs that test positively for explosive sub-periods in their price–rent ratios, especially during the 2005–2007 subsample. Our approach allows us to estimate the correlation between shocks to expected rent growth, the expected housing return, and the PVR component. We find that the expected housing return and movements in the PVR component are highly positively correlated implying an impact of the expected housing return on house prices that is amplified from what a standard present-value model would imply. Our results also show that most of the variation in the present-value component of the price–rent ratio arises due to the variation in the expected housing return.     

R&D: the missing link between corporate social performance and financial performance?

Management Review Quarterly - The relationship between corporate social performance (CSP) and financial performance (CFP) has been analyzed for decades. Despite these efforts, the results remain...     

Trade friction and price discovery in the USD–CAD spot and forward markets

This paper examines the impact of trade friction on price discovery in the USD–CAD spot and forward markets. Using the recently developed fractionally cointegrated vector autoregressive (FCVAR) model, we investigate how the foreign exchange spot and forward markets respond to trade friction. We consider two major trade friction events: the United States–Mexico–Canada Agreement and the recent trade friction between Canada and China. Both events show that the forward market plays a dominant role in price discovery, and the influence of the forward market increases as trade tension increases. By comparing the fractional and non-fractional models, we find that the fractional model fits the data better and has superior forecasting performance to the cointegrated vector autoregressive (CVAR) model.     

The role of political tactics on the organizational context–career success relationship

Drawing from the norm of reciprocity, signal theory, and psychological contracts, we argue that the use of different types of political tactics, based on their social desirability, can be reciprocal behavioral reactions to contextual cues (i.e. perceptions of organizational support and politics) that can predict career success. Using a sample of 117 middle managers, our findings suggest that the use of sanctioned political tactics partially mediates the relationship between perceptions of organizational support and career success, while non-sanctioned political tactics suppress the relationship between perceptions of organizational politics and career success.     

Combined and Uneven Development: Reflections on the North–South Divide

Abstract

This paper is concerned with the geography of structural change in Great Britain since 1971. It divides the country into two broad areas—the ‘North’ comprising Northern England, the West Midlands, Wales and Scotland, and the ‘South’ comprising the rest of mainland Britain. The paper documents the uneven regional impact of industrial decline and the rise of the new service economy. The role of the export base is analysed in an appendix using a simple mathematical model to link together regional competitiveness, employment, fiscal transfers, population and migration.

Une évolution mixte et irrégulière: réflexions sur la démarcation Nord/Sud

RÉSUMÉ La présente communication se penche sur la géographie des changements sur le plan structurel survenus en Grande-Bretagne depuis 1971. Elle subdivise le pays dans les deux zones principales suivantes: la région « Nord », comprenant le nord de l'Angleterre, les West Midlands, le Pays de Galles et l’Écosse, et la région « Sud », comprenant le restant de la Grande-Bretagne. La communication documente l'impact régional irrégulier du déclin industriel ainsi que l'essor du secteur tertiaire. Elle analyse le rôle de la base export, dans une annexe, en utilisant un modèle mathématique simple permettant de lier ensemble la compétitivité régionale, l'emploi, les transferts fiscaux, la population et la migration.

Desarrollo combinado y desigual: reflexiones sobre la división entre Norte y Sur

EXTRACTO Este trabajo se refiere a la geografía del cambio estructural en Gran Bretaña desde 1971. Divide al país en dos áreas amplias: el ‘Norte’, compuesto por el norte de Inglaterra, las West Midlands, Gales y Escocia; y, el ‘Sur’, compuesto por el resto del territorio británico. El estudio documenta el desigual impacto del declive industrial y el surgimiento de la nueva economía de servicios. La función de la base de exportación se analiza en un apéndice utilizando un modelo matemático simple para enlazar competitividad regional, empleo, transferencias fiscales, población y emigración.

     

Crossing the borders: the relationship between boundary management,work–family enrichment and job satisfaction

Building upon Boundary Theory, the present study aims at investigating boundary management as a predictor of work-to-family enrichment and, in turn, of job satisfaction. We conceptualize boundary management both as an individual (preferences of an employee) as well as a contextual variable (perceived supplies of a workplace), both with respect to the two dimensions permeability (psychological boundary) and flexibility (physical boundary). In a survey of 222 employees with at least one child at home, we assessed employees' permeability and flexibility preferences, perceived permeability and flexibility supplies of the workplace, work-to-family enrichment and job satisfaction. Regression analysis showed a strong positive association between employees' permeability preferences, work-to-family enrichment and job satisfaction and between perceived flexibility supplies of the workplace, work-to-family enrichment and job satisfaction. Work-to-family enrichment mediated the relationship between permeability preferences and job satisfaction. Furthermore, work-to-family enrichment mediated the relationship between perceived flexibility supplies and job satisfaction. Theoretical and practical implications of the results will be discussed.     

The relation between the equity risk premium and the bond maturity premium in the UK: 1900–2006

Using a rich data set for the UK for over a century, we find that the relation between the equity risk premium and the government bond maturity premium is nonlinear and subject to stochastic regime switching. We identify a regime in which both premia are jointly characterized by low volatility and another regime in which both premia are characterized by high volatility. The occurrence of the high volatility regime chronologically coincides with major changes in the pound exchange rate. The low volatility regime has a higher probability of turning up over two consecutive years than the high volatility regime, but it is not perceived by investors to be an absorbing regime. The lagged maturity premium is a strong predictor of the equity risk premium only in the regime of low volatility. In addition, the lagged equity premium is a predictor of the maturity premium also in the low volatility regime. This result on regime-dependent bidirectional predictability is robust to alternative definitions of the equity premium, and to the inclusion of real interest rate and real growth effects.

The roles of implementation and organizational culture in the HR–performance link

This article attempts to (1) explore the process by which a high-performance work system (HPWS) affects firm performance and (2) demonstrate the mediating role of implementation and organizational culture in the HPWS-performance link. The proposed model was tested using a sample of 243 Hong Kong and Taiwanese firms operating in Guangdong, China. The results from the present study supported the hypothesized mediation of implementation and organizational culture on the HR–performance relationship. This study offers important insights into the mediating mechanism of the HPWS-performance research. Implications for research and managerial practices are provided.     

Challenges and prospects of HRM in developing countries: testing the HRM–performance link in the Eritrean civil service

In this article, the authors examine how, when and to what extent HR practices affect performance at the employee level. As performance is a multi-faceted and complicated concept, HRM outcomes were used as mediating factors between HR practices and employee performance. The data were collected among civil servants in Eritrea, Africa's youngest and poorest country. Although the results generally are in line with previous studies using Western data, their implications in this particular country may be different. Therefore, the challenges and prospects of HR practices in Eritrean civil service organizations are critically analysed and discussed. In the authors' opinion, that the Eritrean economic and political environment within which HR practices operate has not been conducive in maximizing the impact of HR practices on performance. These findings highlight the situation of most developing countries.     

Relationship between the Mean and the Constant in a Box–Jenkins Time Series Model

In some publications the mean is identified with the constant of a Box–Jenkins time series model. In this paper the relation between both terms is demonstrated. Furthermore, by means of an example, the errors which may be made if one does not use each term adequately are shown.     

Empirical Research on the Influence of the Differences between PRC GAAP and IAS/IFRS on Chinese Listed Companies

With the support and promotion of many international organizations, and quick development of accounting standards globalization, the high quality global accounting standards led by IASB are striding towards us at an astonishing speed. After continuous reform, China has made remarkable performance towards accounting standards globalization. From the analysis of the past six years （1999-2004）, the authors find out that although there are systematic differences between PRC GAAP and IAS/IFRS and the differences have significant impact on financial disclosures of Chinese listed companies, the influences have weakened. This means that the differences between PRC GAAP and IAS/IFRS have narrowed and that PRC GAAP is converging towards IAS/IFRS.     

An ill-informed choice: empirical evidence of the link between employers’ part-time or temporary employment strategies and workplace performance in Canada

Many employers seek flexibility through part-time or temporary employment to achieve improved competitiveness and success. Using strategic choice theory, this study is a longitudinal examination of employers’ strategic decisions of reducing labour costs and using part-time or temporary workers on workplace performance. Workplace performance is measured through profitability, productivity and change in net operating revenue. Statistics Canada’s Workplace and Employee Survey longitudinal workplace data are used for the analysis. Results show that reducing labour costs strategy has no effect on profitability, productivity or change in net operating revenue, and using part-time or temporary workers strategy shows decreased profitability and productivity, and that there is no effect on the change in net operating revenue in Canadian workplaces studied. Based on these findings, we recommend that employers, in Canada and elsewhere, not only carefully weigh reducing labour costs and employing part-time or temporary workers strategies for workplace performance, but also reconsider such strategies and instead seek alternative means of improving workplace performance.     

The relationship between perceptions of HR practices and employee outcomes: examining the role of person–organisation and person–job fit

Human resource management (HRM) practices can play an important role in matching people with the organisations and the jobs they work in. However, little is known about how employees perceive and interpret HR practices and whether or how these perceptions relate to perceptions of person–organisation (P–O) and person–job (P–J) fit. This study aims to bridge strategic HRM and person–environment fit literature by examining possible mediating and moderating roles of P–O and P–J fit in the relationship between employee perceptions of a broad set of HR practices and employee attitudes and behaviours. Results from a sample of 412 employees support direct relationships as well as a mediating and moderating role of P–O and P–J fit in the relationship between perceived HR practices and employee outcomes.     

The moderating influence of HR operational autonomy on the entrepreneurial orientation–performance link in franchise systems

This study investigates the concept of HR Operational Autonomy, i.e., the freedom a franchisor offers to franchisees throughout the system with regards to their creation of HR practices. It is shown to have a significant positive moderating effect on the EO-performance link among UK franchise systems, explaining over 20 % of the variance in performance outcomes. Implications and future research directions are discussed.     

Picking on the new kid: Firm newness and deception in buyer–supplier negotiations

This study builds on liabilities of newness theory and moral disengagement theory to investigate deceptive behavior in buyer–supplier negotiations that involve new ventures. Using two purchasing negotiation experiments, it contrasts how negotiators treat employees of new ventures, mature firms, and firms of unknown age. The first experiment examined the behavior of participants in their role as salespeople toward buyers, whereas the second one examined the behavior of participants in their role as buyers toward salespeople. Across experiments, participants shared the belief that their negotiation counterparts were less experienced when these counterparts worked for new ventures than when they worked for mature firms. Moreover, both groups were more likely to deceive negotiation counterparts working at new ventures, although this effect was stronger in magnitude in the first experiment. These findings contribute to the field of behavioral supply management by identifying a new situational variable (firm newness) that promotes deception in purchasing negotiations. Moreover, they provide implications for buyers and suppliers on how to leverage preconceptions associated with their firm's age to gain advantages (or avoid disadvantages) in buyer–supplier negotiations. Finally, we add to liabilities of newness theory by identifying an additional liability that affects new ventures – namely, the increased risk of being deceived.     

Estimation of technical change and price elasticities: a categorical time–varying coefficient approach

We propose a categorical time-varying coefficient translog cost function, where each coefficient is expressed as a nonparametric function of a categorical time variable, thereby allowing each time period to have its own set of coefficients. Our application to U.S. electricity firms reveals that this model offers two major advantages over the traditional time trend representation of technical change: (1) it is capable of producing estimates of productivity growth that closely track those obtained using the Törnqvist approximation to the Divisia index; and (2) it can solve a well-known problem commonly referred to as “the problem of trending elasticities”.     

The influence of international oil price fluctuation on the exchange rate of countries along the “Belt and Road”

In recent years, the international crude oil price has become increasingly volatile. It influences the exchange rate changes of relevant countries through economic growth, price level, international balance of payments, and other channels. Such exchange rate fluctuations have caused certain risks for the development of China’s “Belt and Road” Initiative. This article analyzes the impact of oil price changes on the exchange rates of countries. Because the fluctuation of oil prices and exchange rates has shown the characteristics of multiple time scales, this study used the empirical mode decomposition (EMD) method to obtain the long-cycle and short-cycle sequences of oil prices and the exchange rates of various countries, then analyzed the impact of oil price changes on exchange rates under different time scales. The results showed that oil price fluctuations have an impact on the exchange rate changes of countries along the “Belt and Road” under different time scales. However, this effect is asymmetric between oil-producing countries and non-oil-producing countries, and the transmission path of oil prices to exchange rates varies from cycle to cycle.     

Examining the relationship between customer and entrepreneurial orientation on nascent firms’ marketing strategy

Is entrepreneurial marketing (EM) a ??one type fits all?? approach? Research suggests that EM is especially suitable for small firms. However, it is obvious that??despite their size??small firms show a myriad of different characteristics. In this paper, it is argued that different firm characteristics can be seen in different business orientations, namely customer orientation (CO) and entrepreneurial orientation (EO). In turn, different amounts of EO and CO lead to different forms of EM strategy. The Panel Study of Entrepreneurial Dynamics (PSED) serves as source to investigate relationships between EO, CO, and respective marketing strategies among nascent firms. The study suggests that innovativeness is strongly related to the importance of several marketing strategies, such as developing new or advanced product or process technologies. However, other strategies, such as lower prices or convenient location, are not related to either significant levels of CO or EO. The paper offers two main implications. Firstly, small business founders have to be aware of the fact that certain strategies cannot come ??out of nowhere??. This paper shows that running proactive marketing strategies that aim for ongoing innovativeness require the existence of an underlying EO. Secondly, there are different forms of ??small firm EM??; a finding that requires further research in the future.     

The time-varying correlation between output and prices in the United States over the period 1800–2014

In this study, we examine the time-varying correlations between output and prices, while controlling for the impact of the monetary policy stance and output and inflation uncertainties over the period 1800–2014. The results of the empirical analysis reveal that the dynamic correlations of output and prices were typically negative, suggesting a countercyclical behaviour of prices, apart from the early 1840s and from the beginning until the middle of the 20th century, when the correlation was positive, indicating a procyclicality of prices. A historical decomposition analysis based on a sign-restricted structural vector autoregressive model is able to relate the procyclical and countercyclical behaviour to the predominance of aggregate supply and aggregate demand and/or monetary policy shocks, respectively. Moreover, inflation uncertainty (monetary policy stance) was found to have a positive (negative) effect on inflation over the last 215 years.     

Exchange market pressure on the pound–dollar exchange rate: 1925–1931

This is a study of exchange market pressure against the pound sterling during the inter-war period. The main findings are that (a) the behavior of U.K. fundamentals relative to those of the U.S.A. helps to explain exchange market pressure against the pound; (b) during the run-up to devaluation in September 1931 the monetary authorities in the U.K. were acting to reduce domestic credit; but (c) additional pressure was brought against the pound from speculative sources. These findings relate to current thinking on the choice of exchange rate regime as even well-behaved fundamentals may not be sufficient to sustain a currency on its peg.