Making a successful transition to cash balance. Using employee choice and financial education

As employee work patterns change, the need for flexible plan design has increased. Hybrid plans such as cash balance plans offer a plan design variation that incorporates elements of the traditional defined benefit plan as well as those of defined contribution plans. This article examines plan design trends and discusses both negative and positive reactions to those trends. Finally, the solution of offering choice to plan participants is suggested, and the issues that must be considered are discussed.     

Experimental analysis of choice

Experimental choice analysis continues to attract academic and applied attention. We review what is known about the design, conduct, analysis, and use of data from choice experiments, and indicate gaps in current knowledge that should be addressed in future research. Design strategies consistent with probabilistic models of choice process and the parallels between choice experiments and real markets are considered. Additionally, we address the issues of reliability and validity. Progress has been made in accounting for differences in reliability, but more research is needed to determine which experiments and response procedures will consistently produce more reliable data for various problems.Sawtooth SoftwareDecision Research     

The role of calculative attachment in the relationship between diversity climate and retention

This study enhances our understanding of the complex relationship between diversity and employee retention. The study found that positive perceptions of an organization's “diversity climate” were related to decreased turnover intentions and found support for the proposition that calculative attachment mediated this relationship. In addition, the study considered potential interactions with diversity climate perceptions in predicting calculative attachment and found support for satisfaction with pay as a moderator, but not supervisor effectiveness. Finally, the study determined that the benefits of a positive diversity climate may extend to all employees, including White men. ©2011 Wiley Periodicals, Inc.     

Casino Revenues and Retail Property Values: The Detroit Case

We analyze the effects of commercial casinos on retail property values in the Detroit urban area. Accounting for property characteristics and proximity to the casinos, casinos are found to have a significantly positive influence on retail property values. The effect is stronger within a 5-mile radius of the casinos, suggesting that casinos have a complementary, rather than substitution, effect on other businesses. This provides some of the first micro-level empirical evidence to support the “drawing power” of casinos and the impact of consumer spending on surrounding businesses. The model developed and tested in this study can be applied to other casino jurisdictions to gain further evidence on the impact of commercial casinos.     

Valuation Effects for Asset Sales

This study provides evidence that the outcome for shareholders resulting from asset sales is determined at the time of transaction by the value for the asset sold. Assets sold above market value are followed by positive and significant abnormal returns over the following three months; these returns are magnified in firms where the balance of power in corporate governance favors shareholders. Abnormal returns following undervalued asset sales are insignificant from zero, indicating value-preservation. Value-preservation when the assets are sold below market value becomes less likely as firms approach financial constraints. The reverse is true when assets are sold above market value. This evidence is documented for apartment REITs, which have a large number of comparable transactions available for estimating expected market values.     

The US communications consumer and monopoly supply: The FCC position on the proposed legislation

The existing and prospective US telecommunications policy would be significantly affected by the bills comprising the ‘Consumer Communications Reform Act’, which would substantially amend the Communications Act of 1934. It is argued that the proposed legislation constitutes a serious disservice to the very class of people it purports to protect — the American customer. The argument is put forward through a consideration of policy developments during the past decade and a discussion of the effects of competition in the terminal equipment and private line markets upon telephone company revenues and rates. The author concludes with a detailed summary of the FCC position.     

Efficient choice set designs for estimating availability cross-effects models

Batsell and Polking proposed a discrete choice model which incorporates the availability (presence or absence) of competing brands into the utility of each brand under study. The information on relative impacts of adding or deleting brands is of strategic interest, and models that do not incorporate such effects may be misleading. The designs suggested by Batsell and Polking have 2^m–m–1 choice sets. Even with as few as 10=m brands, this requires over 1000 choice sets. In this paper we provide a catalog of designs for estimating cross effects models in as few as 2m–1 choice sets. This will make cross effects modelling practical in a wide range of academic and commercial settings.