One-stage structural models to explain city size

Several papers have estimated the parameters of Pareto distributions for city sizes in different countries, but only one has attempted to explain the differing magnitudes of these parameters with a set of country-specific explanatory variables. While it is reassuring that there has been some research which advances beyond simple “curve-fitting” to explore the determinants of city size distributions, the existing research uses a two-stage OLS method which yields invalid second-stage standard errors (and, consequently, questionable hypothesis tests). In this paper, we develop candidate one-stage structural models with normal and non-normal errors which accommodate truncated size distributions, potentially Pareto-like shapes, and city-level variables. In general, these new models are nonlinear in parameters. We illustrate with data on U.S. urban areas.     

Dividend payout and executive compensation: theory and evidence

Bhattacharyya (2007 ) develops a model in which compensation contracts motivate high‐quality managers to retain and invest firm earnings, while low‐quality managers are motivated to distribute income to shareholders. In equilibrium, the model shows that there is a positive (negative) relationship between the earnings retention ratio (dividend payout ratio) and managerial compensation. Results of tests of US data show that executive compensation is positively (negatively) associated with earnings retention (dividend payout). Our results indicate that corporate dividend policy is perhaps best understood by considering the payout ratio (dividends divided by earnings), rather than the level of cash dividends alone.     

Value congruence and job-related attitudes in a nonprofit organization: a competing values approach

Researchers have highlighted the importance of the nonprofit sector, its continued growth, and a relative lack of literature particularly related to nonprofit organizational values. Therefore, this study investigates organizational culture in a human services nonprofit organization. The relationship between person-organization value congruence and employee and volunteer job-related attitudes is examined (N = 227). Following initial qualitative enquiry, confirmatory factor analyses of the Competing Values Framework and additional values revealed five dimensions of organizational values. The relationship between value congruence, and employee and volunteers' job-related attitudes was examined using polynomial regression techniques. Analyses revealed that for employees, job-related attitudes were influenced strongly by organization values ratings, particularly when exceeding person ratings of the same values. For volunteers, person value ratings exceeding organization value ratings were especially detrimental to their job-related attitudes. Findings are discussed in terms of their theoretical and practical implications.