Salesperson navigation: The intraorganizational dimension of the sales role

Salespeople require the ability to navigate within their own organization to get what they need to be successful given today's demanding customers. The literature on personal selling provides little guidance on this dimension of the sales role and how it might impact selling performance. We develop the notion of Salesperson Navigation (SpN), embed SpN within a conceptual framework, and show how SpN works to impact individual sales performance. We develop both managerial and research perspectives around this phenomenon.     

Repurchasing Shares on a Second Trading Line

This paper studies a unique buyback method allowing firms toreacquire their own shares on a separate trading line whereonly the firm is allowed to buy shares. This share repurchasemethod is called the Second Trading Line and has been extensivelyused by Swiss companies since 1997. This type of repurchaseis unique for two reasons. First, unlike open market programs,the repurchasing company does not trade anonymously. Second,all transactions made by the repurchasing firm are publiclyavailable in real time to every market participant. This isa case of instantaneous disclosure which contrasts sharply withother markets characterized by delayed or no disclosure. Wedocument that the daily repurchase decision is statisticallyassociated with short-term price changes and the release offirm-specific news. We also find that repurchases on the secondtrading line have a beneficial impact on the liquidity of repurchasingfirms. Exchanges and regulators may consider the second tradingline an attractive share reacquisition mechanism because ofits transparency and positive liquidity effects.     

RETHINKING TAX POLICIES: NEW IDEAS FROM A DEAD ECONOMIST

Economic analysis of tax policy has tended to follow a macro approach in which the state is the focal point and the individual taxpayer is marginalised. An alternative micro approach, exemplified by the classic work of Wicksell, leads to an analysis of the seemingly inexorable growth of the public sector in a democracy and the constitutional constraints necessary to safeguard economic prosperity and individual liberty.     

The Sale of Ideas: Strategic Disclosure, Property Rights, and Contracting

Ideas are difficult to sell when buyers cannot assess an idea's value before it is revealed and sellers cannot protect a revealed idea. These problems exist in a variety of intellectual property sales ranging from pure ideas to poorly protected inventions and reflect the nonverifiability of key elements of an intellectual property sale. An expropriable partial disclosure can be used as a signal, allowing the seller to obtain payment based on the value of the remaining (undisclosed) know-how. We examine contracting after the disclosure and find that seller wealth is pivotal in supporting a partial disclosure equilibrium and in determining the payoff size.     

Public Versus Private Savings Rates in LDCs: Please Effects in recent development

Please Effects, first noted in the 1950s, refer to more vigorous tax efforts having an adverse effect on overall savings in LDCs. It is argued here that, by the 1980s, the reforms imposed by conditionality combined with a less forgiving world economy should have led to significant improvements in public savings performances such that Please Effects would no longer be a widely observed phenomenon, and that perhaps even 'reverse' Please Effects might now be observed. Based on a broadly specified cross-country life cycle regression model, and samples ranging from 89 to 93 LDCs, no evidence whatsoever was found for Please Effects in both the 1980s and the 1990s. In fact, our results provided clear evidence for just the opposite, although for tax policy purposes the reverse Please Effects were not found to be especially large. Savings rates would typically rise about 3% for a 10% rise in the tax/GDP ratio. It was concluded that those who would argue for a greater public role in economies that are clearly savings deficient may once again have a case if, as our results indicate, increased taxation to fund social capital accumulation is not at the expense of savings overall.     

Price Effects of Non-Traditionally Broker-Marketed Properties

This study investigates whether or not non-traditional marketing has an effect on the prices paid for residential real estate. Non-traditionally broker-marketed properties are defined as those properties that are sold with the aid of a real estate broker, but not marketed through a Multiple Listing Service (MLS). An analysis of properties that sold in this fashion offers further insight into the intermediation role of the real estate broker, as well as an opportunity to further investigate the efficiency of residential real estate markets. Specifically, we can assess whether MLS participation generates higher prices by determining whether like-kind properties price equivalently despite differences in their mode of marketing. The results show a significant and positive impact by non-traditionally broker-marketed properties on property price suggesting, for this sample, a premium of over 6% compared to like-kind properties marketed through the MLS. This premium may be a result of brokers intermediating a better matching of buyers and sellers. The observed premium also suggests a degree of market inefficiency.     

Inflatable rescue boat-related injuries in Queensland surf lifesavers: the epidemiology - biomechanics interface

The objective was to describe the relationship between epidemiological and biomechanical factors in the causal pathway of inflatable rescue boat (IRB)-related injuries in Australian surf lifesavers; to develop epidemiological and biomechanical methodologies and measurement instruments that identify and measure the risk factors, for use in future epidemiological studies. Epidemiological and biomechanical models of injury causation were combined. Host, agent and environmental factors that influenced total available force for transfer to host were specified. Measurement instruments for each of the specified risk factors were developed. Instruments were piloted in a volunteer sample of surf lifesavers. Participant characteristics were recorded using demographic questionnaires; IRB operating techniques were recorded using a custom-made on-board camera (Grand RF-Guard) and images of operating techniques were coded by two independent observers. Ground reaction forces transmitted to the host through the lifesaver's feet at the time of wave impact were measured using a custom-built piezoelectric force platform. The demographic questionnaire was found practical; the on-board camera functioned successfully within the target environment. Agreement between independent coders of IRB operating technique images was significant (p < 0.001) with Kappa values ranging from 0.5 to 0.7. Biomechanical instruments performed successfully in the target environment. Peak biomechanical forces were 415.6N (left foot) and 252.9N (right foot). This study defines the relationship between epidemiological and biomechanical factors in modifying the risk of IRB-related injury in a population of surf lifesavers. Preliminary feasibility of combining epidemiological and biomechanical information has been demonstrated. Further testing of the proposed model and measurement instruments is required.     

Analyst Earnings Forecasts for Publicly Traded Insurance Companies

Several trends in the insurance and financial services industry, including demutualizationconsolidation, and deregulation, have attracted increasing attention from investors and financial analysts. This paper investigates the accuracy of the earnings forecasts of financial analysts for insurance companies. Our empirical results indicate that analyst forecasts outperform random walk time-series forecasts. Furthermore, we find that both disagreement over earnings forecasts among analysts and the relative forecasting error in the mean forecasts is smaller for life insurers than for property-casualty insurers, whereas the relative errors for forecasts for multiple-line insurers are in between the two. Forecasting error is a negative function of firm size and the number of analysts who are following a company, and is a positive function of the disagreement among analysts.Analyst forecasts have a timing advantage over the random walk model. Our results also suggest that the fair value reporting requirement (SFAS 115), which has been in effect since 1994, has enhanced the accuracy of analyst forecasts. The SFAS 115 has improved the superiority of analyst forecasts over the random walk forecasts for life insurers, but not for property-casualty insurers, and there is a weak improvement for multiple-line insurers. JEL Classification: G15     

Subprime Transitions: Lingering or Malingering in Default?

When a mortgage borrower becomes seriously delinquent (i.e., defaults), the lender initiates a time consuming and complex recovery process that may or may not result in foreclosure and eventual disposition of the real estate collateral (REO). This research studies this transition process for a unique sample of subprime mortgages that were seriously delinquent on September 30, 2001. Eight months later, possible states for the delinquent loans, in order, are 1)to remain delinquent without deteriorating further, 2) foreclosure, 3) worsen, i.e., become more months delinquent, 4) bankruptcy and 5) cure. The data indicate that, relative to prime loans, when subprime loans become seriously delinquent (90 days or longer) they are about twice as likely to become REO but take about four times longer to get there. It is unusual for a subprime default to be cured suggesting considerable forbearance by subprime lenders. We explore determinants of the transition probabilities and find that the most economically important predictors of transition from default to any other state are the number of payments the borrower has made and the loan to value ratio.