The Efficiency of Stock-Based Incentives: Experimental Evidence

The authors report the results of laboratory experiments in which subjects are offered contracts structured similar to equity compensation packages and result in subjects receiving cash payments that are a function of their effort and random factors. The authors compare the outcomes from alternative contractual forms to theoretical benchmarks and report the efficiency of the contracts to provide evidence on whether options or stocks that have same economic cost to the employer yield the same or different effort levels from the managers. Both contracts elicit lower levels of effort than would be chosen by an expected-payoff-maximizing decision maker. Effort choices under the option contract did not differ significantly from effort choices under the stock contract except for male subjects. The option contract elicits a higher effort level for these subjects and condition than the stock contract. Effort choices reflect loss aversion and regret based on past stock price realizations.     

Successful exporting to the Arabian gulf region: A survey of Bahraini consumers

This paper details the emerging need for relational skills in marketing. The challenges of fostering relational resources within marketing practice and pedagogy are then discussed. Next, the paper explores the value of experiential learning approaches in education and considers different experiential models for fostering relational resources. An African Drumming circle was chosen, because it offers exciting opportunities to explore relational principles both through the actual lived experience as well through the active exploration of the metaphor. The paper concludes that the drumming circle offers an interesting access to experiencing the movement from being an individual actor to collaborating as part of a wider network of actors. Thus, insights are generated at the level of lived experience as well as at a more metaphoric one. The paper therefore serves to foreground the role of pedagogy in Relationship Marketing     

Does customer sex influence the relationship between perceived quality and share of wallet?

This study examines the within and between sex differences on the relative importances of merchandise quality and interaction quality as drivers of behavioral loyalty (share of wallet). A sample of customers of a national retail chain serves as the study setting. The results indicate that for female customers, interaction quality and merchandise quality have equally strong total influence on share of wallet. For male customers, the total effect of merchandise quality on share of wallet is significantly stronger than the total effect of interaction quality. Across sex comparisons reveal that the total effect of interaction quality on share of wallet is stronger for female customers. However, merchandise quality exerts a stronger total influence on share of wallet for male customers. Implications of the results are discussed and avenues for future research are offered.     

The Effects of Job Demands,Job Resources and Intrinsic Motivation on Emotional Exhaustion and Turnover Intentions: A Study in the Turkish Hotel Industry

ABSTRACT

This study develops and tests a model which investigates the simultaneous effects of job demands, job resources, and a personal resource (intrinsic motivation) on emotional exhaustion and turnover intentions. Frontline hotel employees in Ankara, Turkey serve as the study setting. Among others, results show that job demands (role conflict and role ambiguity) trigger frontline employees' emotional exhaustion and turnover intentions. Job resources (supervisory support, training, empowerment, and rewards) and intrinsic motivation reduce emotional exhaustion. Implications of the findings are discussed and directions for future research are offered.     

Asymptotic analysis of the ruin with stationary stable steps generated by dissipative flows

We study the exceedance probability of a high threshold (ruin probability) for a random walk with a negative linear drift, where the steps of the walk (claim sizes) constitute a stationary ergodic symmetric α-stable process. We casually use the language of insurance, although this is a popular problem in many other fields of applied probability as well. We refer to ergodic theory to split the step process into two independent processes. We focus on the processes generated by dissipative flows, which are known to have a mixed moving average representation, and we restrict our attention to regular moving averages with non-negative kernels. We give results for the order of magnitude of the exceedance probability as the threshold goes to infinity in the cases of discrete-time and continuous-time claim processes.     

Do Riskier Borrowers Borrow More?

Conventional wisdom in the mortgage industry holds that loan-to-value (LTV) ratios are positively correlated with mortgage default rates. However, not all empirical studies of mortgage loan performance support this view. This paper offers a theoretical signaling model of why the correlation between LTV ratios and default risk is contingent upon the default costs of the borrower. Specifically, the model proposes that when default costs are high there exists a separating equilibrium in which risky borrowers will self-select into lower LTV loans to reduce the probability of facing a costly default, while safe borrowers will self-select into higher LTV loans as a signal of their enhanced creditworthiness. This adverse selection process gives rise to the possibility of higher default probabilities for lower LTV loans. Conversely, when default costs are low the conventional result, in which risky borrowers select higher LTV loans than safe borrowers, is obtained. Empirical results, based on a sample of 859 single-family residential mortgage loans drawn from the portfolio of a national mortgage lender, are consistent with the separating equilibria predicted by the model.     

How similar are frontline bank employees' perceptions of service quality to their customers? A study of female customers and employees in Turkey

This study investigates to what extent underlying configurations of customer evaluations of service quality as perceived by frontline employees and as reported by customers match. Surveys of two groups of female bank customers (151 students and 83 adults) and 68 female bank employees in Turkey serve as the study setting. The SERVQUAL instrument is used in measuring employees' and customers' perceptions of service quality. The factor congruency technique is employed to determine the extent of similarities and disparities among the groups. Results show that the underlying configurations of service quality perceptions decompose into three factors in the cases of both customer groups and five factors in the case of employees. Overall, customers' and employees' service quality perceptions do not correspond. This discrepancy underscores the need for accurate assessment of customer perceptions of service quality and training of employees to look at service quality from the perspective of customers by using customers' definitions. Avenues for future reasearch are offered.     

Efficacy of perceived risk as a correlate of reported donation behavior: An empirical analysis

Various environmental trends suggest a challenging future for nonprofit organizations’ quests for fund-raising and volunteer recruitment. Previous research indicates that the perceived risk paradigm may be a valuable framework for examining donation behavior. The evidence generated in this study shows that risk perception has little bearing on money and time donation behaviors. Results also suggest that while perceived risk does not predict donation behavior well, it improves prediction when used in conjunction with demographic variables. His articles have appeared in theJournal of Marketing Research, Journal of the Academy of Marketing Science, Journal of the Market Research Society, Long Range Planning, Journal of Business Research, andInternational Journal of Research in Marketing. Dr. Yavas serves on the editorial review boards of theJournal of Business Research, International Marketing Review, and other journals. His articles have appeared in theJournal of the Academy of Marketing Science, Journal of Marketing Research, Journal of Consumer Research, Journal of Business Research, andInternational Journal of Advertising. Dr. Riecken’s contributions have received outstanding paper awards at the conferences of the Decision Sciences Institute, Academy of Marketing Science, and Southwestern Marketing Association. His articles have appeared in theJournal of Marketing Research, Journal of the Academy of Marketing Science, Journal of Retailing, Journal of Business Research, Journal of Advertising Research, Journal of Consumer Affairs, and other marketing and management journals. Dr. Babakus serves on the editorial review boards of theJournal of Personal Selling and Sales Management, Journal of Business Research, and other marketing journals.     

The Changing Role of Financial Stress,Oil Price,and Gold Price in Financial Contagion among US and BRIC Markets

The objective of this paper is to explore the determining factors behind financial contagion between US and BRIC (Brazil, Russia, India, and China) equity markets. To this end, we investigate the effects of global macroeconomic factors on the time‐varying correlations among these markets obtained by asymmetric dynamic conditional correlation method. Utilizing quantile regression analysis, we examine the determinants of financial contagion at different levels of time‐varying correlations. The results of quantile regression analyses reveal that global financial crisis (GFC) (2008) leads to changes in the dependence structure between dynamic conditional correlations among equity markets and global macroeconomic factors, such as global financial stress, oil prices, and gold prices. Following the GFC, monetary, and fiscal policy changes in the BRIC markets and hence changing macroeconomic risks of these markets are conducive to these changes. Our findings also demonstrate the importance of cross‐market rebalancing channel for information transmission across US and BRIC markets.     

The Feldstein Horioka puzzle in E7 countries: Evidence from panel cointegration and asymmetric causality analysis

In this study, the Feldstein–Horioka (FH) puzzle were investigated by the panel cointegration and causality methods over the available period of 1989–2015 for the E7 countries. Westerlund panel cointegration test with multiple structural breaks, and Westerlund and Edgerton regime panel cointegration test results indicate that there is a cointegration relationship between the two variables in the long term. The long-term FH panel coefficients obtained from common correlated effects mean group (CCMEG) and augmented mean group (AMG) estimators are 0.792 and 0.758, respectively. The findings of the Kónya bootstrap panel Granger causality test show that there is no causality relationship between the two variables in the short term. However, in the results of the asymmetric causality test, unidirectional and statistically significant causality is going from the negative shocks of domestic saving to the positive shocks of investment for China, Indonesia, Mexico and Turkey. The overall results show that the FH puzzle is valid for the E7 countries.