Can Stigma Explain Large Property Value Losses? The Psychology and Economics of Superfund

This research documents the long term impacts of delayed cleanup on property values in communities neighboring prominent Superfund sites. The research examines the sale prices of nearly 34,000 homes near sites in three metropolitan areas for up to a 30-year period. To our knowledge, no other property value studies have examined sites in multiple areas with large property value losses over the length of time used here. The results are both surprising and inconsistent with most prior work. The principal result is that, when cleanup is delayed for 10, 15, and even up to 20 years, the discounted present value of the cleanup is mostly lost. A possible explanation for these property value losses is that the sites are stigmatized and the homes in the surrounding communities are shunned. The results suggest that expedited cleanup and minimizing the number of stigmatizing events would reduce these losses. This research was supported by the USEPA under cooperative agreement CR 824393-01-0. The authors wish to thank Alan Carlin for his patience and support along with Shelby Gerking, Kip Viscusi and three anonymous reviewers for their thoughtful comments. We also would like to thank Christian Coerds, Graham Crawford, Rachel Deming, Karen Grace-Martin, Brian Hurd, Joe LaVerde, Eleanor Smith, and Matt Todaro for their support on this project and the participants of the Risk Perception, Valuation and Policy conference at the University of Central Florida and the AERE Workshop in Estes Park, Colorado, for their helpful feedback.     

Influencing consumers’ selection of domestic versus imported products: Implications for marketing based on a model of helping behavior

Recent marketing campaigns have urged American consumers to “Buy American.” Marketers can improve the success of their campaigns if they understand the network of influences that lead American consumers to help threatened domestic workers. Consumers’ cooperation in purchasing domestic products may be viewed as a form of help for American workers whose jobs are threatened by the success of imported products. This study presents a model designed to explain consumers’ willingness to help these workers. Survey data were subjected to structural equation analysis to test the model. Results confirmed willingness to help is influenced by the salience of the problem, identification with the workers, inequity of the situation, felt similarity with the workers, empathy with the workers, and the costs of helping. These findings suggest ways to market the Buy American theme. She received her Ph.D. from the University of Utah. Her research interests include international marketing and channels of distribution. Her work has appeared in theJournal of Business Research, Journal of Advertising, Journal of Retailing, and other marketing journals. He received his Ph.D. from the University of Illinois. His research interests include the fitness market, consumer logistics, helping behavior, and marketing channels. His research findings have been reported in theJournal of the Academy of Marketing Science and in various other business and social science journals and proceedings. He received his Ph.D. from the University of Houston. Dr. Biswas’s work has been published in theJournal of Marketing, Journal of the Academy of Marketing Science, Journal of Macromarketing, Journal of Business Research, Journal of Advertising, Journal of Consumer Affairs, Psychology and Marketing, andJournalism Quarterly, as well as other refereed journals.     

Real options in equity partnerships

We examine factors influencing the decision to acquire additional equity in partner firms in research‐intensive industries. This decision involves choosing between flexibility and commitment. Option theory motivates hypotheses regarding the effects of uncertainty, valuation of developing technologies, and the threat of preemptive rivalry. Our main hypothesis is that the resolution of uncertainty for high‐value technologies motivates commitment decisions. We also argue that when the underlying growth option is at risk of preemption by rivals, greater uncertainty encourages commitment. An event history model tests these hypotheses using data from minority investments in the biotechnology industry. Copyright © 2002 John Wiley & Sons, Ltd.     

Contemporary Accounting Research: A Retrospective between 1984 and 2021 using Bibliometric Analysis*

This study critically evaluates research published by Contemporary Accounting Research (CAR) between 1984 and 2021 using bibliometric analysis. We examine the following: (i) CAR's publication quality and the factors associated with its citations and (ii) CAR's scope regarding research diversity, methods, authors geographical dispersion, and collaborative networks. The methodology permits observation of finer collaboration details and research patterns not apparent by simply categorizing the data. We use tools such as performance analysis, coauthorship analysis, bibliographic coupling, and regression analysis. The bibliometric analysis shows improvement in CAR's CiteScore and source-normalized impact per paper over time, consistent with publishing high-quality research. Our analysis reveals that authors' geographical affiliations, research subject areas, and research methods are not systematically associated with citations across our various subsamples. A notable exception is that research on audit topics generates more citations than studies examining financial accounting topics. Other factors significantly and positively associated with citations include article age, article length, number of authors, order of author names, and number of references. We also show that CAR has become more diverse regarding author affiliations, subject areas, and research methods than most leading accounting journals. Only Accounting, Organizations and Society emerges as more diverse, thereby serving as a benchmark for CAR in the future. CAR should consider focusing on high-interest areas to boost citations and tightening its acceptance criteria.     

Speak softly, but carry a big stick: On optimal targets under moral hazard

When managerial compensation is restricted to be constant below a certain target output level, and underlying effort is unobserved, a recent article by Liu suggests that the optimal sharing rule should be smooth and locally convex at the target. This is incorrect. If minimum payments are set exogenously, the optimal sharing rule for a risk-averse manager will be kinked at the target. If penalties are unbounded, the principal can approach the first-best full-information outcome by offering a constant payment under normal conditions but imposing a severe punishment for extremely unlikely low outcomes, i.e., by “speaking softly but carrying a big stick.”