Uncertain outlays in time-to-build problems

In this paper we analyze investment projects in which there is uncertainty in the total investment cost in addition to uncertainty in the completed project value. We deal with an uncertain time-to-build. Uncertainties in investment cost are quite common in long-term, large-scale, path-breaking undertakings such as some R&D projects. We find that the inclusion of uncertainty in investment cost tends to mitigate the impacts of the uncertainty of completed project value. The implications of the results are significant. First, when uncertainty of investment cost is ignored, the value of the project is underestimated and a tendency toward underinvestment will result; and second, the existence of uncertainty in investment cost will cause long-term projects to require larger declines in value before discontinuation of investment should occur.     

Submission quality in open innovation contests - an analysis of individual-level determinants of idea innovativeness

The digital age allows for integration of dispersed groups into the innovation process. These heterogeneous groups of individuals varying in size and knowledge distribution, also referred to as crowds, build the basis for open innovation contests (OIC), one of the most common forms of crowdsourcing innovation. Different from more focused forms of open innovation, at OIC innovation managers often do not identify or evaluate participants ex-ante. Instead, innovation managers often make use of open calls for participation and assume efficient self-selection of participants i.e., that only motivated and qualified participants will volunteer and engage in the innovation contest. This behavior reflects one of the key assumption of crowdsourcing in participatory innovation settings. However, not every self-selected member is in the position to solve the contest task appropriately. Hence, innovation contests often result in large numbers of submissions, covering a wide range of quality levels, causing decision biases and significant workloads for innovation managers to select ideas. This problem is referred to as “crowding”. In order to reduce “crowding”, open innovation researchers are interested in understanding which types of individuals make the “best” contributions and therefore should be preferably encouraged to participate in in OIC. In this paper, we are assessing what characterizes those participants who submit innovative ideas to OIC, in particular those who submit incremental ideas vs. those who have more radical ideas. Drawing on the componential model of creativity and data generated in innovation contest held by chocolate producer Ritter Sport, we analyze the effect of participants‘ creativity, domain knowledge, and several motivational factors on the innovativeness of their contributions. We find all of these factors to affect the innovativeness of an idea. However, regarding generating incremental or radical innovations, some factors have opposing roles. Our findings imply for practice that innovation managers must decide which type of innovations they intend to generate and then design contests to attract participants with the required characteristics, if they want to increase the number of appropriate ideas and reduce the problems of “crowding”.     

Optimal Valuation of Noisy Real Assets

We study the optimal valuation of real assets when true asset values are unobservable. In our model, the observed value cointegrates with the unobserved true asset value to cause serial correlation in the time series of observed values. Autocorrelation as well as total variance in the observed value are used to calculate an efficient unbiased estimate of the true asset value (the time–filtered value). The optimal value estimate is shown to have three time–weighted terms: a deterministic forward value, a comparison of observed values with previously determined time–filtered values, and a convexity correction for incomplete information. The residual variance measures the precision of the value estimate, which can increase or decrease monotonically over time as well as display a linear or nonlinear time trend. We also show how to revise time–filtered estimates based on the arrival of new information. Our results relate to work on illiquid asset markets, including appraisal smoothing, tests of market efficiency, and the valuation of options on real assets.     

Women in leadership: an analysis of the gender pay gap in ASX‐listed firms

This study provides evidence that after several decades of fighting for equal pay for equal work, an unexplained gender pay gap remains amongst senior executives in ASX‐listed firms. After controlling for a large suite of personal, occupational and firm observables, we find female senior executives receive, on average, 22.58 percent less in base salary for the period 2002–2013. When executives are awarded performance‐based pay, females receive on average 16.47 percent less in cash bonus and 18.21 percent less in long‐term incentives than males. The results are robust to using firm fixed effects and propensity‐score matching. Blinder–Oaxaca decomposition results show that the mean pay gap cannot be attributed to gender differences in attributes, including job titles. Instead, the results point to differences in returns on firm‐specific variables, in particular firm risk.     

Finding an academic home for fundraising: a multidisciplinary study of scholars' perspectives

• The high‐demand, high‐paying field of fundraising does not have an academic home in higher education, which hampers fundraising research and education. Recent advances in fundraising education and research can be attributed to four different disciplines: public relations, marketing, nonprofit management, and higher education administration. This disjointed approach has impeded the empirical study of fundraising, the development of theory in the field, and the education of future fundraisers. The purpose of this study is to begin the process to scientifically identify an appropriate academic home for fundraising that benefits fundraising practice, advances scholarship, and strengthens America's nonprofit sector. In‐depth interviews were conducted with 15 scholars from multiple disciplines who had published articles on fundraising in the three major nonprofit management and philanthropy journals. Findings show that there is no consensus among scholars about whether fundraising belongs in public relations, marketing, or nonprofit management. Although this study found no consensus among fundraising scholars about the appropriate academic home for fundraising, it does identify areas of agreement and disagreement on pertinent topics and provides a benchmark to guide further discussions about locating fundraising within an academic discipline.

Copyright © 2016 John Wiley & Sons, Ltd.     

Is Economic Integration the Solution to African Development?

In the African continent, several regional initiatives have been launched or executed. These gave rise to several groupings including COMESA consisting of 19 countries, ECOWAS (15 countries), ECCAS (10 countries), and SADC with 15 countries. These groupings are not exclusive in that several countries belong to more than one regional group. The road to full integration clearly begins with a regional arrangement. The many groupings in Africa had the long term goal of creating an all inclusive African Economic Union. The objective is to promote the African continent’s economic growth, political stability, and good governance. The paper examines the effectiveness of some of these regional grouping in the context of an all-inclusive African club with the aid of the club model. Using data for the period 1986–2005, costs and benefits of membership are evaluated using the gravity Model. The Helpman’s size dispersion index is used to identify a potential anchor for a regional grouping.

Defecography: Results in 55 patients and impact on clinical management

We reviewed the medical records and defecograms in 55 consecutive patients to determine the impact of results of defecography on clinical management. Main indication for defecography was constipation, present in 40 (73%) of 55 patients. In the remaining 15 patients, indications included obstructed defecation (5), incontinence (5), and miscellaneous symptoms (5). Defecography evaluated pelvic floor motion by assessing changes in the anorectal angle (ARA) and anorectal junction (ARJ) during various maneuvers, extent of evacuation, and structural abnormalities. Patients were grouped based on results of defecography as being normal (26) or abnormal (29). Comparison of measurements of the ARA and ARJ with various maneuvers showed no significant differences between the two groups. Clinical impact was determined by analyzing therapy done following defecography and subsequent patient response. In the normal group, 15 patients were managed medically, seven surgically, and four lost to follow-up. Clinical improvement occurred in 13 (59%) of 22 patients, with similar results between medical (60%) and surgical (57%) therapy. In the abnormal group, 16 had medical management, seven surgical therapy, and six lost to follow-up. Clinical improvement occurred in 13 (57%) of 23 patients but surgical therapy showed more improvement. In conclusion, most standard measurements of the ARA and ARJ were of no value in determining abnormality. Results of defecography did not alter selection of medical or surgical therapy, and had little impact on patient response to therapy.