Foreclosure with Incomplete Information

We investigate the robustness of the new foreclosure doctrine and its associated welfare implications to the introduction of incomplete information. In particular, we let the upstream firm's marginal cost be private information, unknown to the downstream firms. The previous literature has argued that vertical integration is harmful because it allows an upstream monopolist to limit output to monopoly levels, whereas a disintegrated structure will "over-sell," producing more in equilibrium. By contrast, we find that with incomplete information, high-cost firms will often "under-sell" in equilibrium, that is, supply less than their monopoly output. Low-cost firms continue to over-sell, so all types of firms have a reason to integrate downstream, but this is socially harmful only for low-cost types. For high-cost firms vertical integration can be Pareto-improving, resulting in higher output, profits, and consumer surplus.     

A Simultaneous Equations Analysis of Analysts' Forecast Bias, Analyst Following, and Institutional Ownership

In this paper we use a simultaneous equations model to examine the relationship between analysts' forecasts, analyst following, and institutions' investment decisions. Estimates of our three equation model using US data indicate that higher institutional demand leads to greater optimism among analysts and lower analyst following. At the same time, institutional demand increases with increasing optimism in analysts' forecasts but decreases with analyst following. We also investigate firm characteristics as determinants of analysts' and institutions' decisions. Empirical estimates of the effects of these characteristics indicate that agency‐driven behavioral considerations are significant.     

Does Sleep Really Matter? Examining Sleep among Salespeople as Boundary Role Personnel for Key Job Factors

ABSTRACT

Purpose: Sleep deprivation among employees has become commonplace in the workforce. In the United States, the number of hours individuals sleep per night has declined by an hour and a half per night since the 1960s. As of 2005, seventy-four percent of individuals were getting less than eight hours of sleep per night on weekdays. There are negative ramifications to the organization when employees are sleep deprived such as lost productivity, increased accident rate, and increased absenteeism.

Originality/Value/Contribution of the paper: Although prior research has investigated the impact that sleep deprivation has on unique job positions (e.g., shift workers, transportation), no research has investigated how sleep impacts business-to-business sales employees. Due to the responsibilities of business-to-business sales employees, this type of position should not just be lumped in with other organizational employees. For example, business-to-business sales employees are boundary spanning employees that are responsible for generating revenue for the organization. These sales employees are also more likely to be physically, socially, and psychologically separated from the organization since they frequently work outside of the office. Because of these distinctive roles, this study examines if differences based on sleep duration exist for business-to-business sales employees for two individual and five organizational factors. The two individual factors consisted of grit and happiness while the five organizational factors consisted of perceived organizational support, perceived supervisory support, job satisfaction, organizational commitment, and turnover intentions.

Methodology/Approach: Data was collected from 320 business-to-business sales employees using a cross industry survey. The survey was conducted using a Qualtrics panel. Sleep duration was broken into two groups with one group consisting of business-to-business sales employees who sleep, on average, seven or more hours per night and the other group consisting of business-to-business sales employees who sleep, on average, six or less hours per night. The sleep duration groups were determined based on prior research that found adults should regularly sleep seven or more hours per night in order to support optimal health. There were one hundred thirty-four respondents who slept six hours or less and one hundred eighty-six respondents who slept seven or more hours, on average, per night.

Findings: The research question developed was answered by examining the differences between means for the two individual constructs and the five key organizational constructs. Differences in sleep duration for six of the seven sales constructs. There were significant differences between those that slept seven or more hours per night from those that slept six or less for grit, perceived organizational support, perceived supervisory support, job satisfaction, organizational commitment, and turnover intentions. Results found that business-to-business sales employees that slept seven or more hours per night exhibited more grit than those that slept six or less hours per night. In addition, business-to-business sales employees that slept six or less hours per night had higher perceptions of both organizational and supervisory support than those that slept seven or more hours per night. Furthermore, business-to-business sales employees that slept six or less hours per night displayed higher job satisfaction and organizational commitment than sales employees that slept seven or more hours per night. Finally, business-to-business sales employees that slept seven or more hours per night indicated higher levels of turnover intentions than sales employees that slept six or less hours per night. There were no significant differences between the two sleep groups for sales employee happiness. Although some of these results may appear to be counterintuitive, conservation of resources theory can be used to explain these findings.

Research Implications: This exploratory study showcases the importance of good sleep among business-to-business sales employees. This study draws on the conservation of resources theory literature to explain the counterintuitive findings. This theory posits that individuals will retain and guard against resource depletion. Additionally, as resources become depleted, other resources are valued to a greater extent. In this study, the resource being depleted is the condition of sleep. When business-to-business sales employees experience a lower average amount of sleep per night (i.e., six hours or less), they perceive higher levels of support, job satisfaction, and organizational commitment than business-to-business sales employees who experience a higher average amount of sleep per night (i.e., seven hours or more). Although this study provides a good initial examination of how sleep impacts sales organizations, this study also highlights the need for additional business-to-business sales employee sleep research. This is the first study that has examined how sleep duration impacts business-to-business sales employees.

Practical Implications: This study is important to sales research because it highlights the impact that poor sleep of business-to-business sales employees has on the organization. For sales organizations, we provide guidance on ways a sales organization can help promote healthy sleep for their business-to-business sales employees. Some examples of guidance provided can be categorized into four primary categories. These categories include (1) proper sleep education, (2) sales management training, (3) creating a sleep friendly workplace environment, and (4) creating specific workplace policies to minimize sleep disturbances such as setting reasonable work hours and sleep accommodating travel schedules.     

An investigation of the personality traits of scientists versus nonscientists and their relationship with career satisfaction

Drawing on Holland's vocational theory, Schneider's Attraction‐Selection‐Attrition model, and the Big Five/narrow traits model of personality, the present study identified key Big Five and narrow personality traits that both distinguish scientists from members of other occupations and related these to their career satisfaction. A sample of 2,015 scientists had significantly higher levels of openness, intrinsic motivation, and tough‐mindedness, and significantly lower levels of assertiveness, conscientiousness, emotional stability, extraversion, optimism, and visionary style than a sample of nonscientists (n = 78,753). Seven traits were significantly correlated with the career satisfaction of scientists: agreeableness/teamwork, assertiveness, emotional stability, extraversion, openness, optimism, and work drive. Based on these results, a psychological profile of scientists was presented. Findings were discussed in terms of the functional value and person–occupation fit of these traits for the work of scientists. Implications were described for the recruitment, selection, management, and promotion of scientists, as well as their training, development, coaching, counseling, and mentoring.     

Dilettantism in investigating the impact of the Internet on the wellbeing of the elderly

The surge of interest in the social impacts of the Internet has led information systems experts to apply methods and theories garnered from disciplines such as psychology and sociology. As researcher look across disciplines for methods and explanations of outcomes, they run the risk of researching badly. This may be because they are inexperienced in the theory or method, or because the theory or method is not entirely applicable to the context that challenges them. Thus, in the search for the novelty necessary to achieve publications, and given the lack of experience in applying information systems to issues beyond the corporate sphere, research that does not hold water is being undertaken. This is of particular interest because it is not necessarily being undertaken by the novice. The research reported here was undertaken by experienced researchers using experimental and interview methods with which they had experience in other disciplines (psychology and economics). However, the context of researching the impact of the Internet on the quality of life of first time users over the age of 65 was sufficiently different as to render the methods and possibly the theory inappropriate. This dilettantism must be recognized for what it is.     

Incidence,patterns and risk factors for injuries among Ugandan children

There is limited epidemiological data on childhood injuries in developing countries. This study assessed the incidence, patterns and risk factors for injuries among children aged 0–5 years in Wakiso District, Uganda. To determine differences, chi-square and Wilcoxon rank sum tests were used. Risk factors were assessed using Poisson regression. Overall, information from 359 children of mean age 32 months (SD: 18.4) was collected. Annual incidence of injuries was 69.8 per 1000 children/year (95% CI 58.8–80.8). One fatal injury due to burns was reported. Incidence of injuries was less associated with being female (IRR: 0.56, 95% CI 0.34–0.90) and increasing age of the caretaker (IRR: 0.96, 95% CI 0.92–0.99). The high incidence of childhood injuries necessitates the need for interventions to reduce injuries among children.     

Cost Minimization and Managing Soil Nutrient Loading: Conflict or Compromise?

The consolidation of agricultural operations over time has led to fewer, larger farms. For livestock operations, this consolidation has also led to higher animal concentrations and a greater incidence of production externalities. While nitrogen leaching problems are relatively well documented, phosphorus runoff is fast gaining attention as the next big nutrient‐related environmental problem associated with large, highly concentrated livestock operations. One approach for managing soil nutrient loading on dairy farms is for farm or feed mill operators to better manage what they feed livestock. The results suggest that, at typical feed prices, slight reductions in nitrogen loading and significant reductions in phosphorous loading can be accomplished with minimal increases in the cost of dairy rations. An important implication of these results is that the model can be used as a performance standard to help producers and feed millers determine the cost and level of nutrient reduction that are possible. The approach also suggests which ingredients could be most problematic relative to nutrient excretion goals. Avec le temps, la consolidation des activités agricoles a donné naissance à des exploitations plus vastes mais moins nombreuses. Dans le secteur de l'élevage, cette consolidation a aussi débouché sur une plus grande densité de la population animale et une incidence plus marquée des coûts de production externes. Si l'on possède une documentation relativement abondante sur la lixiviation de l'azote, celle du phosphore attire de plus en plus l'attention, car on y voit le prochain problème majeur de pollution associé aux grands élevages à forte concentration d'animaux. Une façon d'aborder la surcharge des sols en éléments nutritifs dans les fermes laitières consiste à amener les producteurs ou les fabricants d'aliments du bétail à prêter une plus grande attention à ce qu'ils donnent aux animaux. Les résultats de l'étude laissent croire qu'au prix typique des aliments pour animaux, on pourrait réduire légèrement la charge d'azote et sensiblement celle de phosphore en majorant de façon minime le prix des rations pour bovins laitiers. Ces résultats impliquent notamment qu'on peut se servir du modèle comme norme de rendement afin d'aider les producteurs et les fabricants d'aliments àétablir la réduction de la concentration des éléments nutritifs réalisable et son coût. Cette méthode indique aussi quels ingrédients soulèveraient le plus de difficultés en regard des objectifs d'excrétion des éléments nutritifs.     

Investing in development: Lessons of World Bank experience∗

This article comes from a book entitled Investing in Development: Lessons of World Bank Experience. The book was written by Warren C Baum and Stokes M Tolbert with the participation of a number of other World Bank staff members and several consultants. It is intended primarily as a guide for officials and others in developing countries concerned with managing the use of investment resources. It seeks to synthesize and make accessible in one place some of the principal lessons learned by the Bank in financing development in its member countries. The book is not focused on the Bank's own procedures. Instead, it has the much broader purpose of providing guidance to developing countries in the areas of national investment planning and budgeting, sector analysis and management, and the selection, preparation, and implementation of their whole portfolio of investment projects, regardless of the source of financing. Over the years, the Bank has published a wide selection of materials on various aspects of its work. But this is the first time it has sought to portray in one volume the full scope of the investment process. We present here the book's final chapter, which briefly summarizes the highlights of the Bank's experience.     

Capitalisation of Intangibles — A Review of Current Practice and the Regulatory Framework

This paper reports on capitalisation practices of Australian managers for a large sample of firms in the 1993–97 period, and on accounting regulatory issues in relation to intangibles during and after this period. The data show diversity in capitalisation practices in 1993–97, which we suggest is a consequence of abstract conceptual bases for capitalisation decisions under the Australian regulatory framework. The analysis indicates the framework retains traditional emphasis on conservatism and reliable measurement while providing managers with substantial accounting discretion to capitalise intangible assets. We conclude there is an imperative for research investigating capitalisation decisions for intangibles to guide any further regulation.