Business process offshoring: India and the global services revolution

Kaushik Basu (Ed.). 2004. India's Emerging Economy: Performance and Prospects in the 1990s and Beyond. Cambridge, MA: The MIT Press. 319 pages. ISBN: 0‐262‐02556‐6. Paul Davies. (2004). What's This India Business? Offshoring, Outsourcing, and the Global Services Revolution. London: Nicholas Brealey International. 233 pages. ISBN: 1‐904838‐00‐6. Mark Kobayashi‐Hillary. (2004). Outsourcing to India: The Offshore Advantage. Berlin‐Heidelberg: Springer‐Verlag. 275 pages. ISBN: 3‐540‐20855‐0.     

Decisions in the criminal justice process and signal detection theory: A note

Quality & Quantity -     

The Unemployment-Vacancy Relationship in Australia

One of the most important features of the Australian economy in the past two decades has been the structural deterioration of labour market performance, reflected in both an increase in the average rate of unemployment and an outward shift in the Beveridge Curve, which depicts the relationship between unemployment and vacancies. This article attempts to uncover some of the causes for this structural deterioration, in terms of the factors affecting the UVrelationship. We find that the Beveridge Curve shifted out around 1974, consistent with an increase in the equilibrium rate of unemployment which is generally agreed to have occurred around that time. Using gross labour market flow data, we also investigate the determinants of the equilibrium Beveridge Curve in the 1980s. We find that the Beveridge Curve shifted further outwards in the 1980s. The most important determinant of this shift was the decline in the search effectiveness of the unemployed, reflected in the increasing incidence of long-term unemployment. Partially offsetting this influence during this time were the declining labour force participation of men, and the very large increases in female employment.     

Subprime Loan Default Resolutions: Do They Vary Across Mortgage Products and Borrower Demographic Groups?

This paper examines default outcomes for subprime first lien loans during the recent subprime mortgage boom. It conducts this investigation in two phases. The paper first examines factors associated with pre-foreclosure outcomes for subprime mortgages in default. It then examines factors associated with different outcomes for loans that enter foreclosure. These factors include less understood elements such as mortgage product features and borrower demographics. The analysis is based on detailed loan-level data and employs multinomial logit models in a hazard framework. Results show that default resolutions vary with product features and borrower demographics. Adjustable rate and interest-only mortgages, and loans with low- or no-documentation are more likely to enter foreclosure proceedings, and, once in foreclosure, are more likely to become REO. The existence of junior liens increases the probability of the loan remaining in default. Owner-occupancy is associated with lower likelihood of foreclosure initiation and REO, and greater likelihood of curing default. Additionally, default outcomes are impacted by local legal, economic and housing market conditions, and the equity in the home.     

The role of tax regulation and compensation contracts in the decision to voluntarily expense employee stock options

We show that firms with executive bonuses that qualify for deduction under Internal Revenue Code Section 162(m) were less likely to expense stock option compensation (SOC) in 2002. Additionally, the more likely it is that a qualified firm will incur re-contracting costs, the less likely it is that the firm will expense SOC. CEOs of qualified firms that also expense SOC receive smaller bonuses than CEOs of expensing firms that are not qualified under 162(m), and the lower 162(m) bonuses are not offset by higher SOC. Our results suggest that 162(m) tax incentives are an important determinant of the decision to expense SOC.     

Asset allocation and age effects in retirement savings choices

We examine the asset allocation decisions of members of three large Australian retirement savings funds. Superannuation Guarantee legislation in 1992 made Australian employees compulsory investors by requiring employers to contribute a fixed proportion of earnings to a superannuation fund on behalf of employees. A majority of these employees can choose an investment strategy for these contributions. We examine how actual investment strategy and asset allocation choices of members change with age in view of the conventional wisdom that individuals allocate less to risky assets as they age and investments theory which provides conflicting advice on the issue.     

Spirituality and leadership: Engaging both in higher education

“Although American higher education can justifiably take pride in its capacity to develop the student's ability to manipulate the material world through its programs in science, medicine, technology, and commerce, it has paid relatively little attention to the student's “inner” development—the sphere of values and beliefs, emotional maturity, moral development, spirituality, and self‐understanding.” —from the Foreword to Encouraging Authenticity and Spirituality in Higher Education by Alexander W. Astin and Helen S. Astin     

Ethics vs. IT Ethics: Do Undergraduate Students Perceive a Difference?

Do undergraduate students perceive that it is more acceptable to ?cheat’ using information technology (IT) than it is to cheat without the use of IT? Do business discipline-related majors cheat more than non-business discipline-related majors? Do undergraduate students perceive it to be more acceptable for them personally to cheat than for others to cheat? Questionnaires were administered to undergraduate students at five geographical academic locations in the spring, 2006 and fall 2006 and spring, 2007. A total of 708 usable questionnaires were returned including 532 from students majoring in business-related disciplines and 139 from students majoring in non-business related disciplines (37 were undecided). It appears that in terms of intellectual property violations, undergraduate students in general find cheating using IT more acceptable than cheating without the use of IT. It also appears that undergraduate students perceive that it is relatively more acceptable for them to personally cheat when using IT than for others to cheat when using IT, although this is reversed when IT is not involved. No significant differences on these issues were found between undergraduate students having business discipline-related majors and those having non-business discipline-related majors.