Appraisal Accuracy and Automated Valuation Models in Rural Areas

The Journal of Real Estate Finance and Economics - Accurate and unbiased property value estimates are essential to credit risk management. Along with loan amount, they determine a mortgage’s...     

Antecedents to Decision‐Making Quality and Agility in Innovation Portfolio Management

Innovation portfolio management (IPM) is a dynamic decision‐making process, in which projects are evaluated and selected, and resources are allocated. Previous research has developed an understanding of IPM success and its influencing factors. However, little research investigated the quality of the decision‐making process and the ability to quickly adapt the portfolio. This study focuses on the antecedents of decision‐making quality and agility (i.e., responsiveness to changes in the environment). Based on a decision‐making framework, five structural and cultural IPM components are derived as important antecedents of decision‐making quality, which in turn influences agility. The structural components (1) clarity of strategic goals, (2) formality of the IPM processes, and (3) controlling intensity serve a coordinating function. The cultural components (4) innovation climate and (5) risk climate serve a motivating function in IPM. An analysis of a sample of 179 firms and their innovation portfolios through structural equation modeling using a double‐informant design documents that these five components all positively influence portfolio decision‐making quality, which in turn positively influences agility. Results further show that environmental turbulence moderates some of these relationships. While the positive effect of process formality is weakened under increasing turbulence, the effects of controlling intensity and climate for innovation are strengthened by environmental turbulence. The findings have theoretical implications for the understanding of IPM as a dynamic capability and practical implications for the management of portfolios in turbulent environments.     

Subjective Performance Evaluations and Reciprocity in Principal–Agent Relations

We conduct a laboratory experiment with agents working on, and principals benefiting from, a real effort task in which the agents' performance can only be evaluated subjectively. Principals give subjective performance feedback to agents, and agents have an opportunity to sanction principals. In contrast to existing models of reciprocity, we find that agents tend to sanction whenever the feedback of principals is below their subjective self‐evaluations even if agents' pay‐offs are independent of it. In turn, principals provide more positive feedback (relative to their actual performance assessment of the agent) if this does not affect their pay‐off.     

Electrification of a city bus network—An optimization model for cost-effective placing of charging infrastructure and battery sizing of fast-charging electric bus systems

The deployment of battery-powered electric bus systems within the public transportation sector plays an important role in increasing energy efficiency and abating emissions. Rising attention is given to bus systems using fast charging technology. This concept requires a comprehensive infrastructure to equip bus routes with charging stations. The combination of charging infrastructure and bus batteries needs a reliable energy supply to maintain a stable bus operation even under demanding conditions. An efficient layout of the charging infrastructure and an appropriate dimensioning of battery capacity are crucial to minimize the total cost of ownership and to enable an energetically feasible bus operation. In this work, the central issue of jointly optimizing the charging infrastructure and battery capacity is described by a capacitated set covering problem. A mixed-integer linear optimization model is developed to determine the minimum number and location of required charging stations for a bus network as well as the adequate battery capacity for each bus line. The bus energy consumption for each route segment is determined based on individual route, bus type, traffic, and other information. Different scenarios are examined in order to assess the influence of charging power, climate, and changing operating conditions. The findings reveal significant differences in terms of required infrastructure. Moreover, the results highlight a trade-off between battery capacity and charging infrastructure under different operational and infrastructure conditions. This paper addresses upcoming challenges for transport authorities during the electrification process of the bus fleets and sharpens the focus on infrastructural issues related to the fast charging concept.     

CLASSIFYING MONETARY ECONOMICS: FIELDS AND METHODS FROM PAST TO FUTURE

Abstract We propose a simple, yet sufficiently encompassing, classification scheme of monetary economics. It comprises three fundamental fields and six recent areas that expand within and across these fields. The elements of our scheme are not found together and in their mutual relationships in earlier studies of the relevant literature; neither does this attempt aim to produce a relatively complete systematization. Our intention in taking stock is not finality or exhaustiveness. We rather suggest a viewpoint and a possible ordering of the accumulating knowledge. Our purpose is to promote discussion on the evolving nature and internal consistency of monetary economics at large.     

Performance effects of appointing other firms’ executive directors to corporate boards: an analysis of UK firms

This paper studies the effect on company performance of appointing non-executive directors that are also executive directors in other firms. The analysis is based on a new panel dataset of UK companies over 2002–2008. Our findings suggest a positive relation between the presence of these non-executive directors and the accounting performance of the appointing companies. The effect is stronger if these directors are executive directors in firms that are performing well. We also find a positive effect when these non-executive directors are members of the audit committee. Overall, our results are broadly consistent with the view that non-executive directors that are executives in other firms contribute to both the monitoring and advisory functions of corporate boards.     

Becoming empowered: organization change in a telecom company

The notion of empowerment has been used in the management discourse since at least the 1980s. As a normative model for the distribution of decision-making mandate and administrative and operative responsibilities, empowerment serves as a new shopfloor model or ideology for decentralized organizations of the new workplace. The practice of empowerment is, however, not very often empirically researched, causing a confusion about what empowerment implies in terms of shopfloor activities. This paper presents an extensive organization development programme at a Swedish telecommunication company. Rather than being an easily implemented model, empowerment appears as a complex, heterogeneous process in which the empowering of employees is embedded in local practices and workplace cultures.     

Are long‐term incentive plans an effective and efficient way of motivating senior executives?

Research on senior executive reward has typically explored the connection between pay, performance and the alignment of interests of executives and shareholders. This article examines the relationship between reward and motivation, drawing on the psychological, behavioural economics and decision‐making literatures. Based on an empirical study of FTSE 350 senior executives, the research examines whether long‐term incentive plans are an effective and efficient way of motivating executives, taking into account risk, time discounting, uncertainty and fairness. The article concludes that the way executives frame choices, perceive value, assess probability, evaluate temporal effects and respond to uncertainty means that long‐term incentive plans (LTIPs) are generally not efficient and are often not effective in meeting their objectives. It proposes that, in its current form, agency theory does not provide a sound basis for modelling senior executive reward, and suggests five areas for development.