Scarcity In The Twenty-First Century: How The Resource Nexus Affects Management,
2018
Singapore Management University
Scarcity In The Twenty-First Century: How The Resource Nexus Affects Management, Simon J. D. Schillebeeckx, Mark Workman, Charles Dean
Research Collection Lee Kong Chian School Of Business
Since theadvent of the 21st century and especially since the food andfinancial crisis in 2008, concerns about natural resource availability haveresurfaced. While scarcity concerns date back hundreds of years and arefoundational to economics, how scarcity is interpreted or framed has evolved significantlyin the last two centuries. In this chapter, we recount the evolving scarcity discourseand specifically address the most recent iteration that centres on the idea ofa resource nexus. While significant attention to the nexus has been paid bypolicy-makers and scholars interested in especially water, management scholarshave so far remained absent from these debates. Given recent calls to address grand …
Big-Box Stores And Urban Land Prices: Friend Or Foe?,
2018
Brigham Young University - Provo
Big-Box Stores And Urban Land Prices: Friend Or Foe?, Barrett A. Slade
Faculty Publications
This study examined the effect of a new Walmart store on nearby U.S. urban land prices and found that, within one quarter mile of a new Walmart store locale, land prices increased by almost 39% over the four-year development time period. Supercenters and commercial land sales were instrumental in driving the positive price effects. Robustness tests found a positive land price effect with other big-box stores, suggesting that the land price effect was not limited to Walmart stores, but in fact, was a big-box store effect.
Private Equity Indices Based On Secondary Market Transactions,
2018
Brigham Young University - Provo
Private Equity Indices Based On Secondary Market Transactions, Brian Boyer, Taylor D. Nadauld, Keith Vorkink, Michael S. Weisbach
Faculty Publications
Measuring the performance of private equity investments (buyout and venture) has historically only been possible over long horizons because the IRR on a fund is only observable following the fund’s final distribution. We propose a new approach to evaluating performance using actual prices paid for limited partner shares of funds in secondary markets. We construct indices of buyout and venture capital performance using a proprietary database of secondary market prices between 2006 and 2017. These transaction-based indices exhibit significantly higher betas and volatilities, and lower alphas than NAV-based indices built from Preqin and obtained from Burgiss. There are a number …
Monthly Payment Targeting And The Demand For Maturity,
2018
Brigham Young University - Provo
Monthly Payment Targeting And The Demand For Maturity, Bronson Argyle, Taylor Nadauld, Christopher Palmer
Faculty Publications
We provide evidence of mental accounting in the market for consumer installment debt and argue that increases in credit supply have been an important contributor in the recent rise in auto debt through a demand-for-maturity channel. Since the Great Recession, auto debt has grown faster than any other category of U.S. consumer credit and now eclipses credit cards in total debt outstanding. Simultaneously, auto-loan maturities have increased such that more than half of 2016 auto-loan originations had a term of over 65 months. We document three phenomena we jointly refer to as monthly payment targeting using data from millions of …
The Capitalization Of Consumer Financing Into Durable Goods Prices,
2018
Brigham Young University - Provo
The Capitalization Of Consumer Financing Into Durable Goods Prices, Bronson Argyle, Taylor Nadauld, Christopher Palmer, Ryan Pratt
Faculty Publications
Using loan-level data on millions of used-car transactions across hundreds of lenders, we study the consumer response to exogenous variation in credit terms. Borrowers offered shorter maturity decrease expenditures enough to o set 60-90% of the monthly payment increase. Most of this is driven by shifting toward lower quality cars, but affected borrowers are able to o set 20-30% of a monthly payment shock by negotiating lower prices for equivalent cars. Our results suggest that durable goods prices adjust to reflect credit terms even at the individual level, with one year of additional loan maturity increasing a given car’s price …
Behavioral Household Finance,
2018
Harvard University
Behavioral Household Finance, John Beshears, James J. Choi, David Laibson, Brigitte C. Madrian
Faculty Publications
This chapter provides an overview of household finance. The first part summarizes key facts regarding household financial behavior, emphasizing empirical regularities that are inconsistent with the standard classical economic model and discussing extensions of the classical model and explanations grounded in behavioral economics that can account for the observed patterns. This part covers five topics: consumption and savings, borrowing, payments, asset allocation, and insurance. The second part addresses interventions that firms, governments, and other parties deploy to shape household financial outcomes: education and information, peer effects and social influence, product design, advice and disclosure, choice architecture, and interventions that directly …
Neighborhood Effects On Speculative Behavior,
2018
Brigham Young University - Provo
Neighborhood Effects On Speculative Behavior, Todd Mitton, Keith Vorkink, Ian Wright
Faculty Publications
Speculative behavior plays a key role in numerous markets, but little is known about its causes. We test for neighborhood effects on speculative behavior using daily lottery sales data from 20 states in the U.S. In a sample of 160,000 retailers, lottery sales in a census block increase by $0.26, on average, for each $1 increase in neighboring blocks. We test whether this correlation is attributable to contextual effects, correlated effects, or endogenous effects. Our analysis suggests that social interaction is an important cause of speculative behavior.
Get In Line: Chapter 11 Restructuring In Crowded Bankruptcy Courts,
2018
Brigham Young University - Provo
Get In Line: Chapter 11 Restructuring In Crowded Bankruptcy Courts, Benjamin Iverson
Faculty Publications
Bankruptcy costs depend not only on the laws that govern financial distress but also on the ability of the court to rehabilitate distressed firms. This paper tests whether Chapter 11 restructuring outcomes are affected by time constraints in busy bankruptcy courts. Using the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act as an exogenous shock to caseloads, I find that commercial banks report lower charge-offs on business lending when court caseloads decline, suggesting that the costs of financial distress are lower in less-congested courts. Further, court caseload affects how restructuring takes place. Less-busy bankruptcy judges liquidate fewer small …
Trade Creditors' Information Advantage,
2018
Harvard University
Trade Creditors' Information Advantage, Victoria Ivashina, Benjamin Iverson
Faculty Publications
Using information on the sales of debt claims for 132 U.S. Chapter 11 bankruptcy cases, we show that large trade creditors’ decisions to sell receivables of a distressed company in bankruptcy are predictive of lower recovery rates, and that in such cases these creditors sell ahead of less informed suppliers and other creditors. This result is especially pronounced for more opaque distressed firms, when trade creditors’ information advantage is likely largest. This evidence shows that suppliers that extend significant amounts of trade credit hold private information about their trade partners. Trade creditors who are geographically closer or in similar industries …
Potential Vs. Realized Savings Under Automatic Enrollment,
2018
Harvard University
Potential Vs. Realized Savings Under Automatic Enrollment, John Beshears, James J. Choi, David Laibson, Brigitte C. Madrian
Faculty Publications
Employer adoption of automatic enrollment can dramatically increase retirement savings plan participation. However, many savings plan participants withdraw some, or even all, of their accumulated balances prior to reaching retirement. The extent to which individuals’ preretirement withdrawal decisions, sometimes months or even years after they have been automatically enrolled, offset the increased savings induced by automatic enrollment is an open question. We explore this issue by studying the evolution of retirement savings outcomes over time for the employees at a large firm that introduced automatic enrollment in 2005. Comparing employees hired in the 12 months after the introduction of automatic …
Sunrise Presentations: A Study In Valuing And Divesting A Small Business,
2018
Brigham Young University - Provo
Sunrise Presentations: A Study In Valuing And Divesting A Small Business, Cyndi Barrus, James C. Brau, Amy Cyr, Jessica West
Faculty Publications
Sarah Barnett has decided to go back to school to earn an MBA. For several years she has run a graphic design business. Sarah has unexpectedly been accepted into the MBA program with a scholarship a year earlier than she planned. Classes begin in two weeks and the school she is attending does not allow first year MBAs to work outside of the school curriculum. Sarah has decided to divest her business and now must consider several options to do so. She is most concerned about making sure her customers continue to receive outstanding service, and secondarily concerned about selling …
Credit Supply And The Rise In College Tuition: Evidence From The Expansion In Federal Student Aid Programs,
2018
Federal Reserve Bank of New York
Credit Supply And The Rise In College Tuition: Evidence From The Expansion In Federal Student Aid Programs, David O. Lucca, Taylor Nadauld, Karen Shen
Faculty Publications
We study the link between the student credit expansion of the past 15 years and the contemporaneous rise in college tuition. To disentangle simultaneity issues, we analyze the effects of increases in federal student loan caps using detailed student-level financial data. We find a pass-through effect on tuition of changes in subsidized loan maximums of about 60 cents on the dollar and of about 20 cents on the dollar for unsubsidized federal loans. The effect is most pronounced for more expensive degrees and degrees offered by for-profit and 2-year institutions.
The Contributors,
2018
De La Salle University, Manila, Philippines
The Contributors, Marites Tiongco
DLSU Business & Economics Review
No abstract provided.
Is A Regional Credit Rating Agency For The Asean Feasible?,
2018
De La Salle University-Manila
Is A Regional Credit Rating Agency For The Asean Feasible?, Tereso S. Tullao Jr, Christopher James R. Cabuay,, Daniel S. Hofileña
DLSU Business & Economics Review
In the spirit of deepening the bond markets of the ASEAN+3 region, as well as addressing the inadequacies put forth by the underrating of bonds by global credit rating agencies (GCRAs) and their lack of recognition of domestic CRAs’ (DCRAs) ratings, we look into the feasibility of a regional CRA (RCRA). Establishing an RCRA is faced with hurdles related to institutional and reputational constraints, mechanisms of information exchange, compatibility of financial reports, operational limitations, governance structure, and regulatory frameworks. In this light, we provide a brief discussion on potential alternatives such as the credit ratings initiative of the National University …
Ownership Structure And Stock Return Asymmetries In Asean-5 Stock Markets: A Firm-Level Analysis,
2018
National Institute of Development Administration, Bangkok, Thailand
Ownership Structure And Stock Return Asymmetries In Asean-5 Stock Markets: A Firm-Level Analysis, Sorasart Sukcharoensin, Pariyada Sukcharoensin
DLSU Business & Economics Review
This paper explores the relationship between ownership structure and the skewness in the stock return distribution among ASEAN-5 equity markets, including Indonesia, Malaysia, the Philippines, Singapore, and Thailand during 2007–2015. This study adds to the existing literatures that ownership structure can explain skewness of the stock returns. The empirical results reveal that stock returns in ASEAN-5 markets present asymmetric distribution. Further, by employing firm-level data, the results show that ownership structure, cumulative daily stock returns, firm size, and market-to-book ratio significantly affect future skewness of the stock returns.
Regime-Switching Business Cycle Synchronization In The Asean,
2018
National Institute of Development Administration, Thailand
Regime-Switching Business Cycle Synchronization In The Asean, Yuthana Sethapramote, Athakrit Thepmongkol
DLSU Business & Economics Review
This paper investigates patterns of business cycle synchronization and analyzes the underlying common factors in six ASEAN countries, that is, Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. Two important findings result. First, according to resulting regime probabilities calculated from the Markov-switching model, Singapore is not synchronized with other ASEAN members, while Indonesia, Malaysia, and the Philippines are highly correlated. Second, according to the principal component analysis, we find that the world’s import value growth, the output growth of China, and the capital flow of Singapore are most likely to account for 88% of variation in probabilities of the ASEAN …
Compliance Theory: A Case Study Approach In Understanding Organizational Commitment,
2018
De La Salle University, Manila, Philippines
Compliance Theory: A Case Study Approach In Understanding Organizational Commitment, Nelson J. Celis
DLSU Business & Economics Review
The Electronic Commerce (e-Commerce) Act of 2000 or Republic Act (RA) No. 8792 mandates all government agencies to transact business and perform government functions using electronic documents within two years from the date of its effectivity in June 2000. Unfortunately, only a handful of government agencies were ready to implement the said law in the year 2002 despite the availability of applicable information technology (IT) resources and appropriated budget. After 17 years, there is considerable improvement in the compliance with the said law, though there are still non-compliances of government offices that could not manage to be at par with …
Predictors Of Humanistic Sustainability Hrm Practices,
2018
De La Salle University, Manila, Philippines
Predictors Of Humanistic Sustainability Hrm Practices, Ana Liza Asis-Castro, Divina M. Edralin
DLSU Business & Economics Review
We determined and compared the degree of implementation of humanistic sustainability human resource management (HRM) practices. We analyzed which among the firm demographics, such as the number of years of operation, size, and type of ownership, is its significant predictor. Based on the Motivations of Humanistic “Sustain Ability” framework where the HRM practices were rooted, we used the descriptive, correlational, and causal research designs to analyze the 137 samples responses of various companies who participated in the survey. Our results showed that Philippine companies were moderately implementing humanistic sustainability HRM practices. It also indicated that those that were registered as …
Analysis Of Food Demand Elasticity Of Rice For The Poor In Aceh, Indonesia: An Almost Ideal Demand System Approach,
2018
Universitas Syiah Kuala, Banda Aceh, Indonesia
Analysis Of Food Demand Elasticity Of Rice For The Poor In Aceh, Indonesia: An Almost Ideal Demand System Approach, -- Suriani, Diana Sapha A.H, Cut Zakia Rizki
DLSU Business & Economics Review
The purpose of this study is to empirically explore the effect of rice for the poor (Raskin) or subsidized rice consumption on the food demands elasticity of poor households. The study utilizes the primary data collected in 2015 based on the purposive sampling method for establishing the homogeneity characteristics of Raskin beneficiary’s households. An Almost Ideal Demand System approach is adopted to measure the proportion of food commodities expenditure of the poor and the demand elasticity as well as their responses to the income elasticity. Additionally, the correlation analysis is utilized to investigate the relationship between the selected socioeconomic variables …
Sunrise Presentations: A Study In Valuing And Divesting A Small Business,
2018
Brigham Young University
Sunrise Presentations: A Study In Valuing And Divesting A Small Business, Cyndi Barrus, James C. Brau, Amy Cyr, Jessica West
The Journal of Entrepreneurial Finance
Sarah Barnett has decided to go back to school to earn an MBA. For several years she has run a graphic design business. Sarah has unexpectedly been accepted into the MBA program with a scholarship a year earlier than she planned. Classes begin in two weeks and the school she is attending does not allow first year MBAs to work outside of the school curriculum. Sarah has decided to divest her business and now must consider several options to do so. She is most concerned about making sure her customers continue to receive outstanding service, and secondarily concerned about selling …
