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Academic Journal
Accounting

“Selection benefits of below-market pay in social-mission organizations: effects on individual performance and team cooperation”

Many organizations whose core purpose is to advance a social mission pay employees below-market wages. We investigate two under-appreciated benefits of below-market pay in these social-mission organizations. In a series of experiments, we predict and find that, holding employees’ outside opportunities constant, those attracted to social-mission organizations that pay below-market wages perform better individually and cooperate more effectively in teams than those attracted to social-mission organizations that pay higher wages. The individual performance effect arises because below-market pay facilitates the selection of value-congruent employees who are naturally inclined to work hard for the organizational mission. The team cooperation effect arises because employees expect team members who have selected a social-mission job that pays below market to be more value-congruent and, therefore, more cooperative than those who have selected a social-mission job that pays higher wages. Collectively, we demonstrate that in social-mission organizations, offering below-market pay can yield selection benefits.
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BIS

“Semantics or Standards for Curriculum Search?”

Aligning digital library resources with national and state educational standards to help K-12 teachers search for relevant curriculum is an important issue in the digital library community. Aligning standards from different states promises to help teachers in one state find appropriate materials created and cataloged elsewhere. Although such alignments provide a powerful means for crosswalking standards and curriculum across states, alignment matrices are intrinsically sparse. Hence, we hypothesize that such sparseness may cause significant numbers of false negatives when used for searching curriculum. Our preliminary results confirm the false negative hypothesis, demonstrate the usefulness of term-based techniques in addressing the false negative problem, and explore ways to combine term occurrence data with standards correlations.
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BIS

“Sense of Virtual Place (SOVP): Conceptual Exploration and Initial Empirical Validation”

In this article, we introduce the notion of “Sense of Virtual Place” (SOVP) and explore the factors affecting it. We argue that SOVP can act as a surrogate for user engagement in virtual environments. We develop and validate a SOVP measure, adapting from a widely used measure of Sense of Place (SOP) in the academic disciplines of environmental and social psychology.
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Academic Journal
Finance

“Sentiment Bubbles”

We examine cumulative changes in investor sentiment and find that these changes relate to extended periods of increasing overvaluation, followed by price corrections. The relation between sentiment and returns is path dependent—short-term increases in sentiment precede strong positive returns, while prolonged periods of increasing sentiment precede negative returns. Positive short-run returns are consistent with bubble dynamics and mitigate the backwards induction conundrum described by Abreu and Brunnermeier (2003). Our results hold for the market portfolio, and are especially strong for opaque portfolios with high levels of uncertainty, as well as portfolios with greater market frictions that limit arbitrage.
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Academic Journal
Marketing

“Service Provider to the Rescue: How Firm Recovery of Do-It-Yourself Service Failure Turns Consumers from Competitors to Satisfied Customers”

While consumers frequently attempt to resolve their own consumption problems (i.e., do-it-yourself (DIY)), they are often unsuccessful and subsequently turn to a professional. In the present research, we consider DIY failure as a form of service failure (SF) and demonstrate that experiencing DIY service failure (DIY SF) influences consumer evaluations of subsequent firm recovery. This occurs because consumers who experience DIY SF gain greater understanding of the task (i.e., learning) through their failed attempt. This learning promotes increased appreciation of the recovering service provider’s ability, ultimately resulting in greater satisfaction with the recovery offering. We further identify mindset as a moderator of this effect, wherein those with a growth mindset are more likely to learn from failure and appreciate the abilities of the recovering service provider. By highlighting DIY SF as a novel form of SF, we demonstrate the importance of understanding customers’ prior experiences with the focal consumption problem and its solution, and of training front-line employees to better manage these customers. We test our theory across four studies using lab and field data, and close by discussing theoretical and managerial implications.
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Academic Journal
Finance

“Share Pledging, Payout Policy, and the Value of Cash Holdings”

Share pledging for insiders’ personal bank loans is associated with the agency problems of insider risk aversion and stock price crash risk. We examine the relation between insider share pledging and the value of cash holdings using the pledging data of listed firms in Taiwan. We find that the value of cash holdings is lower for pledging firms, especially for those that are relatively more risk averse. Pledging firms that repurchase shares have a higher marginal value of cash than those with other payout methods, likely due to the role of repurchases in reducing the stock price crash risk. Our results show how insiders’ personal financing incentives arising from share pledging would affect the value of cash holdings from the perspective of agency problems and payout policy.
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Academic Journal
Finance

“Shareholder Rights in Mergers and Acquisitions: Are Appraisal Rights Being Abused?”

Appraisal rights grant dissenting shareholders in an acquisition the right to petition the court to determine the value of their shares. These rights can protect shareholders from acquisitions below fundamental value or can be abused by opportunistic investors. We examine the use of appraisal rights and find the evidence is most consistent with appraisal rights functioning as recourse when the target firm is sold below fundamental value.
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