Estimating the economic cost of the COVID-19 pandemic

Business Economics - Our study presents a framework to estimate economic costs of the COVID-19 pandemic for the U.S. economy. We characterize whether the pandemic-related damages are short-lived or...     

Timing of apology after service failure: the moderating role of future interaction expectation on customer satisfaction

Marketing Letters - When there is a service failure, it is often believed that employees should immediately apologize to customers before hearing their complaints. However, we argue that in certain...     

Bootstrapping the autoregressive distributed lag test for cointegration

We propose a bootstrap autoregressive-distributed lag (ARDL) test. By applying the appropriate bootstrap method, some weaknesses underlying the Pesaran, Shin and Smith ARDL bounds test are addressed including size and power properties and the elimination of inconclusive inferences. In addition, inferences based solely on the significance of the F-test and single t-test from the ARDL bounds test are not sufficient to avoid degenerate cases. The bootstrap ARDL test provides an additional test on the significance of coefficients on lagged levels of the regressors, which provides a better insight into the cointegration status of the model.     

CEO Branding: Between Theory and Practice — Case Studies of Israeli Corporate Founders

This is the first interdisciplinary study to empirically test a theoretical model described in 2013 by Bendisch, Larsen, and Trueman, regarding the CEO branding process—by comparing three founder CEO brands in Israel. The findings validate the model and display strongly perceived “authenticity” in each case study, strengthening the reliability of the CEO brand. The study clearly shows that each of these successful CEO brands has: a clear brand identity, built on the alignment of its human identity and its managerial identity; a strong CEO brand reputation, built on its human reputation and aligned managerial reputation; clear congruence between the CEO brand identity and reputation, producing a distinct, differentiating CEO brand positioning leading to CEO brand equity. These findings, along with stakeholders’ internalization of CEO Brand Reputation values, produce stakeholder positive perceptions of the company—largely through the central role of the business media in the process of CEO branding. Surprisingly, none of these founder CEOs had any prior intention of creating a CEO brand. This study also offers a clear, detailed replication methodology for studying other types of CEOs, in other countries/cultures.     

Common purpose and divided loyalties: the risks and rewards of cross-sector collaboration for academic and government researchers

International evidence shows that research is increasingly being carried out in organisational forms built around cross-sectoral (government, academic and business) and transdisciplinary teams with well-defined national social, economic or environmental objectives in view. As a result, new and unfamiliar forms of organisational arrangements for research are emerging within universities and elsewhere. These collaborative research centres have been variously termed 'hybrid' or 'parasitic'. This paper draws upon around 30 in-depth interviews with participants from selected Australian Cooperative Research Centres (CRC). It examines how researchers reconcile the many demands of their dual role, first, as a government researcher or academic, and second as a committed participant in an industry-collaborative research centre. These collaborations go beyond 'applied research' to span fundamental research and immediately useful knowledge. But reward systems and performance measures for academic researchers are still founded largely on 'discovery', while those for government researchers are based upon 'application'. The risk is that researchers will be deflected by the collaboration in ways that conflict with their institutional responsibilities. The paper reports work analysing the management strategies used by the CRCs and their public sector partners to ensure that their common goals are achieved while preserving their institutional interests and the expectations of their research staff. The aim is to identify effective ways of managing the various 'risks' of cross-sector collaborative research and development (R&D) in Australia and more widely.     

In search of lost time: the temporal construction of innovation management

This paper presents a methodology that is new to the field of innovation management research (IMR), and which is founded upon current interest in theories of time and temporality within organisation studies. We argue that although time is of central importance to innovation management, established methodologies treat time as simply the background against which organisation is done. Even when research is conceptually framed to afford greater attention to time, established methodologies only succeed in highlighting the importance of managers' mobilisation of the past, present and future of innovations. In contrast, we present a methodology that affords time (rather than innovation actors) the more prominent role in analyses and explanations of innovation management. While established research methodologies might offer accounts of the social construction of organisational innovation, we elaborate its temporal construction. The paper reviews the ways in which time and temporality have been deployed (conceptually and methodologically) within IMR. Following a detailed account of the new methodology, its value to innovation management scholarship is demonstrated with a short illustration in which new insights are presented into the emergence of novelty during the management of innovation. The paper concludes with suggestions of areas within IMR where this methodology may generate new insights.     

Top-floor discounts in residential buildings: Evidence from South Korea

This study assesses the phenomenon of resale price discounts for top-floor units of residential buildings, or “top-floor discounts.” Using 1.9 million resale transactions of apartment units from South Korea, we find that top-floor discounts range from 1.3% to 8.3% of resale prices. We hypothesize that top-floor discounts exist because of larger heating/cooling costs for these units relative to those on lower levels, resulting from relatively more extreme variation in indoor temperatures unique to top-floor apartment units. Using a household-level survey data on energy consumption and exploiting variations in weather conditions and roof material across time and regions throughout South Korea, we provide evidence in support of our hypothesis.     

Modelling spikes and pricing swing options in electricity markets

Most electricity markets exhibit high volatilities and occasional distinctive price spikes, which result in demand for derivative products which protect the holder against high prices. In this paper we examine a simple spot price model that is the exponential of the sum of an Ornstein–Uhlenbeck and an independent mean-reverting pure jump process. We derive the moment generating function as well as various approximations to the probability density function of the logarithm of the spot price process at maturity T. Hence we are able to calibrate the model to the observed forward curve and present semi-analytic formulae for premia of path-independent options as well as approximations to call and put options on forward contracts with and without a delivery period. In order to price path-dependent options with multiple exercise rights like swing contracts a grid method is utilized which in turn uses approximations to the conditional density of the spot process.