Customer's angry voice: Targeting employees or the organization?

Poor service encounters have the potential to leave customers feeling angry at the frontline service employee who serves them, angry at the organization, or angry at both parties. The 25 in-depth interviews (Study 1) and experimental work (Study 2) demonstrate how distributive (outcome fairness), procedural (response time) and interactional (treatment received) justice dimensions differentially affect where the customer targets her or his anger, either at the frontline employee or at the organization as a whole. Further investigation reveals sins-of-omission (when the service provider failed to act) and interactional justice mediate the effect of response time on anger at the employee. Interactional justice also partially mediates the effect of outcome fairness on anger at the organization whereas sins-of-omission do not.     

Higher moments and beta asymmetry: evidence from Australia

We examine whether systematic higher moments capture beta asymmetry in an asset pricing model whereby the conditional beta of a risky asset increases (decreases) during a bear (bull) market state. We first provide a simple conceptual outline from the microeconomic literature to show that beta asymmetry is driven by time‐varying higher‐order risk preferences (prudence and temperance) across different market states. We then empirically relate these higher‐order risk preferences to systematic skewness and systematic kurtosis. We find that beta asymmetry in Australian stock returns cannot be explained by Carhart (1997) 4‐factor model but is subsumed by systematic higher moments.     

Economic uncertainty,ownership structure and small and medium enterprises performance

This paper investigates the effect of economic uncertainty on the performance of small and medium enterprises (SMEs) over the period 2007–2016. This paper also examines the effects of ownership structure on the relation between Economic Uncertainty and firm performance. We find that an increase in economic uncertainty is negatively associated with the performance of SMEs. Our results also reveal that increased economic uncertainty is associated with a lower performance level for state-owned SMEs, whereas foreign-owned SMEs can better mitigate the negative impact of on their performance than domestic-owned firms.     

Emissions Trading, Wealth Transfers and the Wounded Bull Scenario in Power Generation

Electricity generators accept that emissions trading is fundamental to meeting CO₂ reduction targets. But unless a percentage of permits are allocated, existing generators will face non-trivial wealth transfers. Seldom contemplated in academic works are the adverse economic consequences of an all-auction approach to emissions trading. Using Victoria to illustrate, we find that once CO₂ prices exceed $17.50/t, the marginal coal generator facing large wealth transfers will withhold generating capacity to raise prices and recoup stranded investments, thus becoming a 'wounded bull' in the market place. This has material welfare implications with modelling results indicate an intermediate-run 300 per cent increase in wholesale power prices.     

WELFARE COSTS OF SHIFTING TREND INFLATION: STAGGERED WAGE AND PRICE CONTRACTS

We develop a New Keynesian model featuring staggered price and wage contracts to study welfare costs of exogenous variations in trend inflation. The analyses show that the consequences of constant positive trend inflation and shifting trend inflation are severe, especially when trend inflation is high. Among two channels, staggered wage contracts play a vital role in transmitting adverse impacts of constant and shifting trend inflation into the economy. Without the staggered wage channel, these costs are modest. We also conduct exercises to examine the sensitivity of welfare costs to a wide range of plausible parameters. The results show that if the price and wage friction are sufficiently large, the price and wage indexation level are sufficiently small, or there is upward biased trend inflation process, the welfare costs become larger.     

Welfare costs of monetary policy uncertainty in the economy with shifting trend inflation

We study welfare costs of the uncertainty about monetary policy in the economy featuring shifting trend inflation. We follow Ruge-Murcia (J Econ Dyn Control 36: 914–-938, 2012) to employ the SMM approach to fit the model to the US data (1979Q1-2015Q1). We find that the monetary policy uncertainty affects economic welfare through different dimensions. On the one hand, the policy uncertainty itself distorts the economic welfare negligibly, not only by increasing volatilities of consumption and leisure, but also by decreasing their average levels. A higher level of trend inflation then signifies these changes to produce greater welfare costs. Furthermore, the adverse impacts of policy uncertainty on the economy, documented by the impulse response functions of macroeconomic variables to policy uncertainty shock, become larger when central banks raise their inflation targets. On the other hand, the costs of exogenous variations in trend inflation are larger if there is policy uncertainty.     

Exercise as a Means of Reducing Perceptions of Work‐Family Conflict: A Test of the Roles of Self‐Efficacy and Psychological Strain

Prior research suggests that exercise has positive benefits for individuals and the organizations they work for. Using the literature related to social cognitive theory and exercise, the present study hypothesizes and tests the effects of exercise on two directions of work‐family conflict: work interference with family (WIF) and family interference with work (FIW). Using a sample of 476 working adults, we found that exercise was both positively related to self‐efficacy for managing work‐family conflict and negatively related to reported psychological strain, which in turn were related to reductions in work‐family conflict. Model fit for the data support our contention that exercise indirectly influences work‐family conflict via its direct impact on increased self‐efficacy and reduced psychological strain. © 2014 Wiley Periodicals, Inc.     

Racial Differences in Helping Behaviors: The Role of Respect,Safety, and Identification

Building upon social and racial identity theories, this study examines the role of positive relational climate in predicting interpersonal helping behaviors (IHBs) at the workplace. Within this context, we examine both the role of mutual respect and psychological safety as exemplars of positive relational climate, and the mediating role of organizational identification (OI). The study also recognizes the importance of individual differences by examining racial differences in OI and IHBs. Results support the hypotheses and strengthen claims of social and racial identity theories.     

Corruption and corporate leverage in an emerging economy: The role of economic freedom

This study investigated the effects of corruption and economic freedom on corporate leverage. We also evaluated how economic freedom shapes the effect of corruption on corporate leverage. Using a sample of Vietnamese firms covering a nine-year period from 2010 to 2018, we find evidence that increased control of corruption has a significant positive impact on firm leverage, whereas the opposite is true for economic freedom. This effect is robust to alternative measures of control of corruption as well as advanced estimation methods, such as firm-fixed effects and quantile regressions. Our results also reveal that the positive impact of corruption controls on corporate leverage is more pronounced for firms with high economic freedom. Econometrically, our findings indicate that firms with better control over corruption prefer debt financing, as demonstrated by their higher leverage ratio.