Contemporaneous Loan Stress and Termination Risk in the CMBS Pool: How “Ruthless” is Default?

This study analyzes the impact of contemporaneous loan stress on the termination of loans in the commercial mortgage‐backed securities pool from 1992 to 2004 using a novel measure, based on changes in net operating incomes and property values at the metropolitan statistical area‐property‐type‐year level. Employing a semi‐parametric competing risks model for a variety of specifications, we find that the probability of default is extremely low even at very high levels of stress, although the coefficient estimates of greatest interest are very statistically significant. These results suggest substantial lender forbearance and are consistent with previous research that models default as a “gradual dynamic process” rather than a “ruthless” exercise once “in the money.”     

The generation of organizational commitment in a cross-cultural context

This contribution explores the cross-cultural variations in the generation of organizational commitment. Participants were Chinese and Western employees of organizations operating in Hong Kong. Both groups believed that effort should be rewarded. However, Chinese and Western participants were committed to different constituencies within the organization. Westerners viewed interpersonal relationships as a means to the end, with the organization being the object of commitment. Chinese committed to interpersonal networks and saw these relationships as the primary organization-member engagement. Chinese and Westerners defined the organization differently and this influenced the way they generated their attachment to the firm.     

Fundamental Properties of Bond Prices in Models of the Short-Term Rate

This article develops restrictions that arbitrage-constrainedbond prices impose on the short-term rate process in order tobe consistent with given dynamic properties of the term structureof interest rates. The central focus is the relationship betweenbond prices and the short-term rate volatility. In both scalarand multidimensional diffusion settings, typical relationshipsbetween bond prices and volatility are generated by joint restrictionson the risk-neutralized drift functions of the state variablesand convexity of bond prices with respect to the short-termrate. The theory is illustrated by several examples and is partiallyextended to accommodate the occurrence of jumps and default.     

Marketing as Value Co-creation Through Network Interaction and Resource Integration

This is a theoretical discourse on contributions to the marketing discipline primarily from service-dominant (S-D) logic, relationship marketing, and the many-to-many network approach. The study combines a literature review with theoretical insights. Framed within a relational context it specifically addresses interaction and its role in the co-creation of value through resource integration. As a consequence, the article also deals with elevating midrange theory in the direction of more abstract and general theory, grand theory.     

Donn,Vic and tiki bar authenticity

This study explores the social history of the tiki bar and associated phenomena, from its origins in the 1930s up to the present. In doing so, we aim to contribute to theory on consumer research about social categories and authenticity. Piecing together fragmented accounts and materials, we first sketch a brief socio-historical narrative of the tiki bar. The narrative describes several colorful, quirky and idiosyncratic individuals, but shows that the tiki bar nonetheless became established as a widely recognized part of American popular culture. At no point did the tiki bar represent an accurate manifestation of Polynesian culture or food, despite its popularity, growth and cultural embeddedness; the tiki bar thus fails any kind of basic test of objective or nominal authenticity, which concerns the provenance of an object. The tiki bar does eventually generate its own institutionalized social category, and many tiki bars fit the category and thereby possess type authenticity. The case is interesting theoretically because the tiki bar’s authenticity status changes across its history and because its growth and institutionalization as a category occurred without explicit endorsement by the state or any professional body or regulator. We speculate that evolution of the tiki bar was driven by a peculiar set of conditions and status dynamics.     

Macroeconomic determinants of stock volatility and volatility premiums

How does stock market volatility relate to the business cycle? We develop, and estimate, a no-arbitrage model, and find that (i) the level and fluctuations of stock volatility are largely explained by business cycle factors and (ii) some unobserved factor contributes to nearly 20% to the overall variation in volatility, although not to its ups and downs. Instead, this “volatility of volatility” relates to the business cycle. Finally, volatility risk-premiums are strongly countercyclical, even more than stock volatility, and partially explain the large swings of the VIX index during the 2007–2009 subprime crisis, which our model captures in out-of-sample experiments.     

E Pluribus Unum? Legitimacy Issues and Multi-stakeholder Codes of Conduct

Regulatory schema has shifted from government to governance-based systems. One particular form that has emerged at the international level is the multi-stakeholder voluntary code of conduct (MSVC). We argue that such codes are not only simply mechanisms by which various stakeholders attempt to govern the action of the corporation but also systems by which each stakeholder attempts to gain or retain some legitimacy goal. Each stakeholder is motivated by strategic legitimacy goal to join the code, and once a member, is also required to assist in maintaining the institutional legitimacy of the code, resulting in “networked legitimacy.” We begin our analysis of these systems by first exploring the growth and structure of such MSVCs, and then building an analytical framework using strategic and institutional legitimacy as they apply to such MSVCs. We contribute to the codes of conduct literature by developing the construct of networked legitimacy from strategic and institutional legitimacy. We then apply our framework to the United Nations Global Compact, one of the predominant MSVCs today. In doing so, we: (1) demonstrate how different stakeholders are pursuing different types of legitimacy through their participation in the code, (2) examine the specific opportunities and risks in terms of what we have called “networked legitimacy” posed by the institutional design of actual MSVCs, and (3) create an argument for three pillars supporting the legitimacy of MSVCs.