Are Commercial Mortgage Defaults Affected by Tax Considerations?

We study whether tax considerations are an important determinant of commercial mortgage default. We also study whether large lenders are better informed, or better at interpreting information for lending purposes, and hence have lower foreclosure rates; whether lenders have more information on larger borrowers than smaller borrowers, and hence have lower foreclosure rates on larger loans; and whether commercial mortgage defaults are related to debt service coverage and loan-to-values, both initial and contemporaneous. The paper’s main findings are fourfold. First, holding all else equal, there is evidence that tax considerations influence investors’ decisions about when to “put” assets to lenders. The results are consistent with the argument of Constantinides (J Financ Econ 13:65–89, 1984). Second, the evidence suggests that large lenders are especially knowledgeable about commercial mortgage borrowers and commercial property markets, in that they have lower foreclosure rates than smaller lenders. Third, on the question of whether lenders have more information on larger borrowers than smaller borrowers, we find that larger loans have, on average, lower default rates than smaller loans. Fourth, the findings suggest that lower default rates are associated with higher debt service coverage ratios, both initial and contemporaneous.     

Hierarchy and conservatism in the contributions of resources to entrepreneurial activity

This study addresses the relationship between the munificence offered by a country’s proximate institutions in terms of a critical financial resource (informal investments) and human resource (entrepreneurship education) and its early-stage entrepreneurial activity. We also examine how this relationship might be moderated by underlying cultural values. Our main thesis is that the positive effects of resource munificence of proximate institutions on early-stage entrepreneurial activity should be attenuated in countries with a more hierarchical and conservative culture. We test our hypotheses using a multi-source dataset that spans 42 countries.     

Finding critical success factors for virtual community marketing

Previous studies have identified critical success factors related to using virtual communities as a marketing channel. These studies have followed two research trends that connect the virtual community to actual purchasing. One is finding relationships between the operational elements of a virtual community and members’ intent to purchase and the other is finding relationships between characteristics of virtual community members and their intent to purchase. The model for this study reflects both trends. In addition, the model reflects research related to factors of customer satisfaction and the measurement of marketing success in terms of sense of community and loyalty. Conclusions from this research have been verified empirically with survey data collected from 292 virtual community members representing nine profit-oriented virtual communities. This study confirms that operational elements of a virtual community and characteristics of virtual community members affect the success of virtual community marketing. It is also confirmed that perceptions of usefulness, trust, and commitment toward the virtual community are important intervening effects. However, not all factors studied in the model were found to be significant in relationship to successful virtual community marketing. The analysis of the results from this study should be helpful to practitioners who use virtual communities as a marketing channel.     

Financial literacy and use of payday loans in the United States

Using the 2012 National Financial Capability Study, this study investigated the relationship between financial literacy and payday loan use. An instrumental variable approach was employed to address a possible endogeneity issue using a newly developed instrument of financial literacy based on the community network effect. Results from linear regressions indicated that financial literacy was associated negatively with the use of payday loans, and its effect was greater with the use of the instrument.     

Financial literacy and high‐cost borrowing: Exploring the mechanism

Recent studies have suggested that financial literacy is an important determinant of informed borrowing decisions. Despite the evidence that financially literate consumers are less likely to use alternative financial services, the mechanism through which financial literacy discourages demand for alternative financial services has yet to be fully understood. The previous studies proposed several explanations, such as the ability to undertake complex financial calculations and understand contract terms, to link financial literacy to savvy credit choices. This study evaluates the validity of this argument by examining whether or not financial knowledge plays a greater role in borrowing decisions where consumers are forced to rely on financial knowledge. It is assumed that consumers in an information‐sparse environment have a greater incentive to utilize financial knowledge to infer the hidden cost of borrowing contracts. To test this argument, this study examines the extent to which information availability moderates the negative impact of financial knowledge on rent‐to‐own transactions. Information content is captured by state‐level disclosure mandates for rental contracts, given that consumer in a loosely regulated state are exposed to less pricing information. The results illustrate that limited information strengthens the negative association between financial knowledge and rent‐to‐own transactions. This confirms the previous arguments that consumers are active thinkers who refer to financial knowledge to estimate the overall cost of borrowing.     

The appealing characteristics of download type mobile games

As the mobile game industry enjoys continual and rapid growth in the market and becomes a major sector of the service industry, it is of great interest to examine the very features that make mobile games so fascinating and keep its players coming for more. Pinpointing more precisely the very factors that increase the attraction of games will help game makers allocate corporate resources more efficiently. In addition, a more in depth analysis of the appealing characteristics enable game producers to establish an organized strategy in developing more advanced and technologically sophisticated mobile games, and to enhance their competitive advantage. In order to find these factors, we proposed a model, analyzed empirical data, and then interpreted the results. In this study, we examined the download type mobile game to find and compare factors that cause intent to play. The suggested model has three layers. The top layer is the intent to play mobile games. The second layer, the psychological perception layer, consists of two perceptive factors: perceived enjoyment, and perceived copresence. The third layer is a technological layer, used to classify the characteristics of the mobile games content into image, communication, and attractive characteristics, all of which have relationships with perceptive factors. The study shows some interesting results and we believe the conclusion and implications of this research will be useful for mobile game scholars and industry participants.     

实际汇率、股价水平和就业路径的结构主义分析

真实汇率和真实股价水平可以作为预测因子,提前预测经济活动的强弱.自然利率能够在结构性繁荣和衰退期间担当中央银行利率政策的风向标,通过保持短期实际利率与自然利率的协调,中央银行能控制均衡的通货膨胀率,并使经济沿着随时间变化的自然失业率变化的轨道发展.美国和OECD国家的数据都证实了模型的有效性.     

After the great recession : financial sophistication and housing leverage

US households face various choices in saving for retirement, with one of the most common decisions related to maintaining or paying off a mortgage. Using the 2010 and 2013 Survey of Consumer Finances, this study investigates the relationship between financial sophistication and mortgage decisions among middle-age households. A Heckman two-stage selection model is employed to investigate two separate decisions: mortgage holding and loan-to-value (LTV) ratios among mortgage holders. Results indicate that financial sophistication is positively associated with carrying a mortgage and higher LTV ratios. These results imply that financially sophisticated households may be using leverage to increase asset returns.     

Environmental Responsibility and Firm Performance: The Application of an Environmental,Social and Governance Model

This paper investigates the way in which environmental responsibility impacts on corporate financial performance, measured by return on equity (ROE) and return on assets (ROA). Using a sample of Korean firms covering the period 2011–2012, and employing two different test methods, namely the OLS and 2SLS methods, we show that the relationships between environmental responsibility performance and firms’ ROE and ROA are positive and statistically significant. However, we show that research and development (R&D) intensity (expenditure) does not affect either environmental responsibility or corporate financial performance. The results of this analysis encourage further empirical analysis of the industries, as well as the use of more than one estimation method to determine environmental responsibility and corporate financial performance within firms. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment