Trajectories of Small Business Financial Structure

A dynamic theory of the small firm is expounded, assuming entrepreneurs maximise business value over a finite time horizon. Predicted trajectories for key financial variables are seen to depend on whether debt or equity are cheaper. The predicted trajectories are compared with actual trajectories, using empirical evidence from three years of detailed primary source data on one hundred and fifty new business startups in Scotland. Evidence largely confirms predictions of the model, for the cheap equity case. For this case, as capital and sales rise steadily, debt is retired rapidly, except when interest rates on long-term debt are low. This finding is supported by explicit empirical trajectories of key financial variables.     

A note on the design and structure of a small firms relational database

The design of a database for analysing field-work data on small firms is reported upon. The flat file ralational database methodology is adopted. This facilitates the flexible handling of large volumes of both quantitative (numerical and categorical) and qualitative (textual) data. Manipulation of the database is illustrated using some small firms examples.Many persons have contributed to the larger project on which this paper is based. On the field work side, I should mention Lowell Jacobsen, Anne-Theresa Lawrie and Jacqueline Campbell. On the computing side, I should mention Sandra Rice and Julian Read. Christopher Corrie provided useful research assistance during my tenure of a Leverhulme Fellowship, when this work was accomplished. I remain responsible for such errors and deficiencies as this paper may contain.     

Are There Investor Clienteles in Rental Housing?

The possible existence of investor clientele groups has received little attention in the real estate finance literature. In this paper we develop a clientele model, which in equilibrium produces a clustering of investors by tax characteristics. Low-tax-bracket investors are concentrated in low-value rental housing that attracts rents which are high in relation to property values. On the other hand, only high-tax-bracket investors will be observed in high-value rental housing, and they charge rents that are low in relation to property values. An empirical model is specified and estimated using a cross section of investors in Australian private rental housing markets. Investor clienteles are detected among property investors, though there is a weak diversification effect indicating that clientele effects may be stronger among single property investors.     

Lifting the hood of supply and demand for trademarks of start-ups: Partial observability estimates

This paper estimates simultaneously the supply and the demand determinants of the trademark adoption decision made by start-ups. We use a partial observability econometric model, as non-adoption is unobserved. Estimation is by maximum likelihood using the partial observability bivariate probit (POBP) model for an unbalanced longitudinal panel of surviving US start-ups (2004–2011). Our model is shown to provide a good explanation of supply and demand determinants of trademark adoption. For example, size, incorporation and expenditure on R&D are important on the supply side; and copyrights, licensing out and being in a high knowledge information sector are important on the demand side.     

Autoregressive conditional durations: An application to the Surinamese dollar versus the US dollar exchange rate

The parallel market nominal exchange rate of the United States dollar vis-à-vis the Surinamese dollar (USD/SRD) exhibited periods of severe volatility which were often followed by episodes of stability, usually at a cost of sharp depreciations. This study seeks to model this exchange rate using autoregressive conditional duration models. These models are suitable for modelling events occurring with irregular intervals. Exchange rates in developing countries have distinct features compared to exchange rates in countries with well-established and accessible financial markets. A key feature is that for these developing countries, exchange rates only occasionally experience jumps. Our findings suggest that past exchange rate changes appear to be a significant driver of future exchange rate jumps. Furthermore, our results show that money, international reserves, and commodity prices can explain jumps in the market USD/SRD exchange rate.     

Understanding pre-teen consumers social media engagement

Social media (SM) platforms are frequently used by pre-teen (8–12-year old) consumers for curating their self-identity, developing social relationships and for learning. This paper identifies the building blocks that drive pre-teen SM engagement. We use the Gioia method to analyse interview data collected from 32 pre-teens and parents, in France. Findings show that the primary building blocks are FoMO (Fear of Missing Out) and social inclusive experience, being noticed online, multiplicity, excessive use (without guidelines) and self-regulation. Identity constructs (self-identity and social-identity) are used to explain SM engagement – and to empirically define core conceptual building blocks (aggregate dimensions) that drive SM engagement. We contribute to consumer theory by developing a holistic research framework to examine pre-teen SM engagement. Self-identity and social-identity theories help explain the factors that drive pre-teen SM engagement and explain push/pull influences of parents and schools in encouraging or discouraging certain behaviour. We build on current research into SM usage, drawing from the fragmented existing literature, to reveal causes of both excessive screen-time and SM usage among pre-teen consumers, which may indicate antecedents of future adult behaviour. Practical and regulatory policy issues are considered and addressed.     

Ebb and flow: Structural and spatial change in Victoria's brewing industry, 1870–1900

The brewing industry has undergone profound structural and spatial change over the last 150 years. We examine how consolidation began in Victoria's brewing industry using a historical GIS approach. We argue that industry restructuring was shaped by four interlocking dynamics between 1870 and 1900: (1) structural economic change; (2) railway development; (3) technological innovation; and (4) regulatory reform. We show that the ebb and flow of these interacting dynamics generated a non-linear process of change. Similar to North America and Europe, the industry became highly concentrated. However, this process was complicated by local factors such as climate, economy, and distance.     

Healthy financial habits in young adults: An exploratory study of the relationship between subjective financial literacy,engagement with finances,and financial decision-making

This paper provides insights into young adults' financial habits and decision-making considerations as they enter the workforce. We use 28 semi-structured interviews with Australian university graduates to explore how their motivation to engage with personal finances and their subjective financial literacy, i.e., self-reported, support healthy financial habits. Our findings show that a young adult's social context and exposure to financial hardship rather than their financial confidence determine the health of their financial habits. We observed research participants in a romantic partnership as more focused on their future. This future focus motivates them to engage more with their finances and manifests as explicit goal setting, formal budgeting, or adherence to strict bucket systems. These insights might be useful for policymakers and educators: social context matters when designing financial health interventions, while financial education programs predominately should aim at demystifying complex long-term financial decision-making such as investments and retirement.