The Competitive Impact of Commercial Bank Underwriting on the Market for Municipal Revenue Bonds

This paper examines the impact of commercial bank entry in the market for municipal revenue bonds. We show that issues underwritten by commercial banks have lower underwriter spreads but not lower yields relative to issues underwritten by nonbank investment firms. In particular, this is more significant for non-investment-grade bonds underwritten by commercial banks. Our results are consistent with the interpretation that bank entry has resulted in increased competition in the municipal revenue bond market and that the lower yields observed for bank-underwritten commercial bonds may be due to banks having private information. Overall, our results suggest that policy changes leading to the relaxation of restrictive provisions concerning bank underwriting of municipal revenue bonds have had beneficial effects.     

The Role and Impact of Financial Advisors in the Market for Municipal Bonds

Significantly more and more issuers of municipal bonds use the services of financial advisors during the bond issuance process. We investigate the benefits to issuers and market participants arising from the role of financial advisors in the issuance of municipal bonds. Using a large sample of 9,493 tax-exempt municipal bonds, we show that financial advisors have significant impact on borrowing costs, reoffering yields and underwriter gross spreads. Our results are more pronounced for revenue bonds, particularly for negotiated revenue issues. In addition, our results show significant advantages to using a financial advisor for refunding issues supporting the view that financial advisors play important roles for more complex issues. Our results are consistent with the interpretation that financial advisors provide important and useful services resulting in monitoring and information asymmetry reduction benefits accruing to issuers and market participants.      

Modelling non-linearity in economic classification with neural networks

In this paper results are presented of a study on economic classification with neural networks. Comparison is made between neural networks and linear modelling techniques and, in particular, comments are made on the problem of overfitting and the estimation of prediction errors in cases where the available data sets are relatively small. It is shown that selecting network parameters by k-fold cross-validation and weight decay training are effective remedies for these phenomena. The conclusions are illustrated in two cases: predicting the volume of the mortgage market in the Netherlands and the classification of bond ratings. © 1997 John Wiley & Sons, Ltd.     

Projective testing: Historical foundations and uses for human resources management

The use of projective psychological measures has intrigued scientists and the general public for nearly a century. In the following, we provide the historical and conceptual foundations for a variety of projective measures and review empirical research using them in application to areas relevant to human resource management (HRM). From these reviews, we argue that the slowing of projectives research in HRM applications over the past two decades does not appear to be warranted given these findings. Based on this historical account, we note two major barriers to the use of these measures in HRM. The first is the lack of an HRM-centric literature on projectives, as most research has drawn on theories and measures designed in the context of abnormal attributes. Secondly, subgroups of researchers have historically become mired in what we call philosophical deadlock, wherein the evidence provided by one group does not address the concerns of another and vice versa. We humbly provide some suggestions and hint at future directions for projective measurement in HRM.     

“Travel Tales”: an interpretive analysis of constraints and negotiations to pleasure travel as experienced by persons with physical disabilities

Travel personnel and tourism site managers are often ill prepared to assist travelers with disabilities. The purpose of this study was to expand the understanding of constraints to pleasure travel experienced and negotiation strategies employed by persons with physical disabilities. Comparative pattern analysis was used to systematically analyze narratives written by travelers with disabilities, resulting in the emergence of six intrapersonal, six interpersonal, and eight structural themes. Further examination suggested an interactive, rather than hierarchical, relationship between the themes. Including persons with disabilities at every stage of the travel provision process can help ensure improved services for all travelers.     

Does underwriter reputation matter in the municipal bond market?

We examine the role of underwriter reputation in the tax-exempt municipal bond market. Using a large sample of 10,239 tax-exempt municipal bonds, we show that generally, reputation matters. Municipal bond issues lead managed by larger and more prestigious underwriters have significantly lower borrowing costs, lower yields, and lower underwriting gross spreads. Our results are consistent with the view that reputation facilitates underwriter activities that leads to reducing information asymmetries between borrowers and issuers in the municipal bond market. Our results are also consistent with larger and more reputable underwriters providing a certificatory role for issues underwritten by them.     

Perceived industrial innovation advantage and export commitment

There are increasingly sales opportunities for capital equipment in developing countries. Concomitantly, concern is that capital intensive technologies are too widely employed. Yet there has been little reported empirical research on why LDC manufacturers choose specific equipment. Textile manufacturers accounting for a significant part of Peru's spinning and weaving capacities participated in this study by providing perceptions of two capital versus labor intensive technologies capable of producing identical output. Exporters and nonexporters scores, using a five-point scale, were compared by t tests on 19 equipment attributes selected from innovation diffusion studies. Factor analysis determined innovations underlying dimensions. Factor scores were regressed on export commitment proxies. Higher export dependence related to more concern with ease of altering output specifications and less concern with cost, thus supporting that dependence on foreign versus domestic markets will affect equipment decisions. The method of comparing product attribute perceptions provides a simple possibility for segmenting LDC capital equipment markets.     

Book Reviews

Author: GALLOUJ, FAIZ; Innovation in the Service Economy: The New Wealth of Nations; Reviewer: Jeremy Howells; Editor: HARRISON, DAVID; Tourism and the Less Developed World: Issues and Case Studies; Reviewer: Eleri Jones; Editors: KALYUZHNOVA, YELENA and MICHAEL TAYLOR; Transitional Economics - Banking, Finance, Institutions; Reviewer: Claudia Cirardone; Author: COOKE, PHILIP, Knowledge Economies: Clusters, Learning and Cooperative Advantages; Reviewer: Jennifer Johns.