Some policy implications of bank participation in small business administration lending programs

This study examines the relationship of bank participation in SBA guaranteed lending programs to bank characteristics and market demographic characteristics. Band SBA lending is related to per capita income in the bank's market area, membership in a bank holding company, the loan-deposit ratio of the bank, the percent business loans of the bank, and the total assets of the bank. In markets of 50,000 or less, greater SBA lending is associated with lower per capita income levels. Accordingly, it appears that the economic development function of bank SBA lending is linked to a greater extent with market areas of less than 50,000.     

Retail Leasing: The Determinants of Shopping Center Rents

The determinants of lease rentals are of fundamental importance to real estate researchers and practitioners. Retail leases are unique in that they typically have two rental components: a base rent and an "overage" rent equal to a percentage of the tenant's gross sales above some threshold level. In this paper, we develop and test a simple cash flow model of retail lease valuation that predicts that base rents are lower with higher percentage rent rates and are higher with greater threshold levels of sales. Using a sample of shopping center leases, regression analysis indicates that these tradeoffs are observed in the market.     

Ten Years of the PHD Conference in Economics and Business

Since its commencement in 1987, the PhD Conference in Economics and Business has become an important annual event in Australian Economics. This paper presents an overview of the last ten years of the conference regarding the students involved, their topics and backgrounds, as well as some information on the nature of PhD studies. The experience of these students reveals some key factors that seem to lead to successful research outcomes.     

Capacity utilization and depreciation-in-use

In this paper, the effect capacity utilization has on the depreciation of capital goods is studied, starting from a quadratic approximation to a normalized short-run cost function. Expressions for the optimal rate of capacity utilization, the demands for labour and energy, and for investment are obtained. Investment is a function of past capital stock, expected future capital stock, expected future relative prices and expected future depreciation rates. Expectations are modelled via instruments. The model is tested using US total manufacturing quarterly data. Depreciation dependent upon usage is found to be both statistically and economically significant.     

Pricing Perpetual Options for Jump Processes

Abstract

We consider two models in which the logarithm of the price of an asset is a shifted compound Poisson process. Explicit results are obtained for prices and optimal exercise strategies of certain perpetual American options on the asset, in particular for the perpetual put option. In the first model in which the jumps of the asset price are upwards, the results are obtained by the martingale approach and the smooth junction condition. In the second model in which the jumps are downwards, we show that the value of the strategy corresponding to a constant option-exercise boundary satisfies a certain renewal equation. Then the optimal exercise strategy is obtained from the continuous junction condition. Furthermore, the same model can be used to price certain reset options. Finally, we show how the classical model of geometric Brownian motion can be obtained as a limit and also how it can be integrated in the two models.     

Effect of supervisor–subordinate guanxi on supervisory decisions in China: an empirical investigation

As China is becoming an important market and there are a lot of foreign ventures operating there, different lines of research have been providing useful information for foreign ventures to manage effectively in China. In this paper, we discuss one of the critical factors leading to successful management of Chinese subordinates, i.e. building and maintaining good guanxi (i.e., interpersonal connection) with them. We conducted an empirical investigation to illustrate (1) the supervisor-subordinate guanxi concept is different and unique when compared to other similar concepts in the Western literature such as leader-member exchange (LMX) and commitment to supervisor; (2) the supervisor-subordinate guanxi will affect the Chinese supervisor's administrative decisions; (3) guanxi can be measured by concrete behaviour/activities. Data on 189 supervisor-subordinate dyads were collected in the People's Republic of China (PRC). Results indicated that supervisor-subordinate guanxi is a distinct concept from LMX and commitment to supervisor. It also has additional explanatory power over supervisory decisions on promotion and bonus allocation after controlling for performance. Implications for foreign ventures and expatriates are discussed.     

Digging deeper or piling it higher? Implicit measurement in organizational behavior and human resource management

Organizational researchers can dig deeper into peoples' thoughts, attitudes, and self-concepts to understand how automatic processes may impact judgment and social behavior in organizations. Measures of these automatic processes, including the Implicit Association Test (e.g., IAT; Greenwald, McGhee, & Schwartz, 1998), Semantic Priming (e.g., SP; Wittenbrink, Judd, & Park, 1997), Affect Misattribution Procedure (e.g., AMP; Payne, Cheng, Govorun, & Stewart, 2005), Word Completion Tasks (e.g., WCT; Johnson & Saboe, 2011), among many others, deserve greater attention as alternatives or supplements to traditional self-report measures of variables important in organizations (e.g., job satisfaction, personality and trait measurement, diversity attitudes). In this paper, we first provide a primer on implicit social cognition and its relationship to automatic and controlled cognitive processes, discussing major types of implicit measures, how these might operate, criticisms of this approach, and how these implicit constructs may give rise to behavior in organizations. Second, we discuss models of automatic processes and explore their validity and how these may predict behavior. Third, we offer advice for selecting, constructing, and improving implicit measurements when used in organizational research to enhance human resources and organizational functioning.