We offer the first empirical evidence on the adverse effect of credit default swap (CDS) coverage on subprime mortgage defaults. Using a large database of privately securitized mortgages, we find ...that higher defaults concentrate in mortgage pools with concurrent CDS coverage, and within these pools the loans originated after or shortly before the start of CDS coverage have an even higher delinquency rate. The results are robust across zip code and origination quarter cohorts. Overall, we show that CDS coverage helped drive higher mortgage defaults during the financial crisis.
This article examines the relationship between a mortgage originator's affiliation with the sponsor of a securitization or the servicer of the securitized loans and the default rate on the ...securitized mortgages. We find that default rates are significantly lower for securitizations in which the originator is affiliated with the sponsor or servicer. Consistent with investors expecting performance to vary with affiliation, we find that the initial yields on mortgagebacked securities (MBS) are lower and the percentage of AAA-rated securities issued against the securitized pool of loans is higher when the originator is affiliated with either the sponsor or servicer.
While the existing knowledge sharing literature, in general, emphasizes the link between organizational culture and knowledge sharing, it remains rather ambiguous about how certain components of the ...former may shape the latter. This issue is especially relevant to multinational corporations (MNCs), which typically consist of multiple organizational (sub)cultures and whose existence depends, to a great extent, on sharing knowledge across borders. The present study examines the influence of one key component of organizational culture – organizational values – on knowledge sharing. From 2003 to 2007, we studied Danisco, a Danish MNC, to examine the processes of espousement, enactment and internalization of a core organizational value – dialogue. In particular, we studied how these processes influence knowledge sharing behavior among employees. We collected original empirical data using content analysis and a questionnaire-based survey among 219 managers and employees in 11 countries in four continents. We argue that knowledge sharing behavior is not influenced by organizational values
per se but by the degree of their
internalization by organizational members.
Using data from Pakistan, we show that existing methods produce unbiased and reliable estimates of teacher value added (TVA) despite significant differences in context. Although effective teachers ...increase learning substantially, observed teacher characteristics account for less than 5 percent of the variation in TVA. The first two years of tenure and content knowledge correlate with TVA in our sample. Wages for public sector teachers do not correlate with TVA, although they do in the private sector. Finally, teachers newly entering on temporary contracts with 35 percent lower wages have similar distributions of TVA to the permanent teaching workforce.
Developing Hope among Impoverished Children Glewwe, Paul; Ross, Phillip H.; Wydick, Bruce
The Journal of human resources,
2018-Spring, Letnik:
53, Številka:
2
Journal Article
Recenzirano
Odprti dostop
The role of psychological attributes such as hope in escaping poverty has attracted increasing attention. Crucial questions include the impact of early development of positive psychological ...attributes on socioeconomic outcomes, and whether interventions to reduce poverty increase such attributes. We examine the impact of international child sponsorship on the psychology of Indonesian children by employing a novel program evaluation technique—a quantified analysis of children’s self-portraits. To identify causal effects, we exploit an eligibility rule that established a maximum age for participation. We find that international sponsorship significantly raises sponsored children’s levels of happiness (0.42σ), self-efficacy (0.29σ), and hope (0.66σ).
Every firm faces the challenge of leveraging valuable resources in the form of the intellectual assets, know-how and expertise of itself and others around it. They can only achieve this through ...interaction with other idiosyncratically capable firms. But through interaction, resources, activities and actors themselves evolve in relation to each other. In this situation of complex business interaction and uncertainty, the conditions under which the respective knowledge and expertise can be leveraged often need to be expressed and manifested as joint consent between the involved parties. Designing an agreed platform for using knowledge-based resources of others poses a real challenge for many companies because the knowledge that firms need to access is inherently indeterminate and continually evolving. This study addresses this issue by investigating the role of contracts in leveraging knowledge-based resources. The study builds on an interactive view of resource leveraging in general and on ideas on knowledge-based resources in particular (
Håkansson et al., 2009). The paper reports on empirical research conducted between 2003 and 2007 that examined real-world contracts in manufacturer–retailer networks. The study draws conclusions on the role of contracts in leveraging knowledge-based resources and more widely on the dialectic nature of resource transformation.
► The research addresses the role of contracts in leveraging knowledge-based resources. ► The conditions under which a resource may be leveraged need to be explicitly stated and manifested. ► Leveraging knowledge-based resources depends on firms' capability to engage in interaction that generates joint gains.
We analyze whether local land supply is influenced by the degree of political competition, and interpret the findings as indications of the influence wielded by land developer lobbies. We use a new ...database including both political and land supply data for more than 2,000 Spanish municipalities for the period 2003–2007. In Spain, land use policies are largely a local responsibility, with municipalities needing periodically to pass comprehensive land use plans. The main policy variable in these plans, and the one analyzed here, is the amount of land classified for potential development. We measure local political competition as the margin of victory of the incumbent government. This variable is, however, potentially endogenous, since not only do votes affect policy, but also policy is expected to affect votes. To deal with this problem, we instrument this variable using the votes at the first national legislative elections following the re-establishment of democracy and votes actually obtained regionally at the same type of election. The results indicate that stiffer political competition does indeed reduce the amount of new land designated for development. This effect is found to be most marked in suburbs, in towns with a high percentage of commuters and homeowners, and in municipalities governed by the left.
► We study whether local governments with more competitive elections allow more land to be developed. ► An increase in 1% in the vote margin causes an increase of 0.17% s.d. in the land allowed to be developed. ► These results are indicative of the power of the developer lobby over local land use policies.
We conduct an empirical study of the impact of consumer price search on the shifting of cigarette excise taxes to consumer prices. We use novel data on the prices that smokers report paying and ...document substantial price dispersion. We find that cigarette taxes are shifted at lower rates to carton buyers and, especially, smokers who buy cartons of cigarettes in a state other than their state of residence. We also find evidence that taxes are shifted at somewhat lower rates to the prices paid by heavier smokers and at somewhat higher rates to the prices paid by smokers of light cigarettes.
While much research has investigated peer effects in education, less is known about peer influence at work, particularly how bad peers affect other workers. I study soldiers during a time when the US ...Army granted large numbers of morality waivers to recruits with felony or misdemeanor convictions that normally preclude enlistment. I find that soldiers randomly assigned to larger shares of peers with criminal backgrounds are more likely to commit major misconduct. Additionally, that misconduct often occurs in the same month a waivered peer commits misconduct, suggesting that influence occurs through both exposure to adverse peers and their contemporaneous behavior.
Are All Industry Specialist Auditors the Same? Cahan, Steven F.; Jeter, Debra C.; Naiker, Vic
Auditing : a journal of practice and theory,
11/2011, Letnik:
30, Številka:
4
Journal Article
Recenzirano
SUMMARY
We expand upon the traditional market share-based measure of industry specialization by auditors to address the following question: Are industry specialist auditors who obtain their market ...share by auditing varying proportions of clients in an industry similar in terms of product (audit) quality and price (audit fees)? Our analyses suggest that the audit market is characterized by a type of segmentation in which some specialists pursue product differentiation strategies, focusing more extensively on the acquisition of requisite expertise, while others pursue cost minimization strategies, producing lower cost, lower quality audits. We find that audit fees and quality are higher (lower) when the specialist gains significant market share by auditing a low (high) proportion of clients in that industry. Our evidence suggests that specialists pursue different strategies in different settings. In some cases, specialist auditors may actually be low-end producers, raising a question of whether the “specialist” label is even appropriate.
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