Christian Diego Alcocer, Julián Ortegón and Alejandro Roa
The relevance of present consumption bias on personal finance has been confirmed in several studies and has important theoretical and practical implications. It has important…
Abstract
Purpose
The relevance of present consumption bias on personal finance has been confirmed in several studies and has important theoretical and practical implications. It has important, measurable implications when analyzing commitment or self-control, adherence to healthy habits (e.g. exercising or dieting), procrastination tendencies or savings. The purpose of this paper is to contribute to our understanding of these issues by postulating a model of income uncertainty within a hyperbolic discounting framework that measures the cost of financial intertemporal inconsistencies related to this bias. The emphasis is on the analysis of this cost. We also propose experimental designs and consistent estimation methods, as well as agent-based modelling extensions.
Design/methodology/approach
The authors develop a finite-horizon model with hyperbolic preferences. Individuals have a present bias distinct from their discount rate so their choices face intertemporal inconsistencies. The authors further extend the analysis with uncertainty about future incomes. Specifically, individuals live for three periods, and the authors find the optimal consumption levels in the perfect-information benchmark by backward induction. They then proceed to add biases and uncertainty to characterize their implications and measure the costs of the intertemporal inconsistencies they cause.
Findings
The authors measure how an agent's utility is greater when they “tie their hands” than when they are free to re-evaluate and change their consumption schedule. This “cost of being vulnerable to falling into temptation” only depends (increasingly) on the measure of the present bias and (decreasingly) on the discount factor. They analyze the varying effects on utility and consumption of changes in impatience and optimism. They conclude by discussing theoretical and practical implications; they also propose agent-based simulations, as well as empirical and experimental designs, to further test the relevance and applications of the results.
Practical implications
This model has important, measurable implications when analyzing commitment or self-control, adherence to healthy habits (e.g. exercising or dieting), procrastination tendencies or savings.
Social implications
The results enhance the estimation of the costs of present biases such that employers can better identify the incentives required to acquire and retain human capital. The authors provide evidence that workers are vulnerable to contract renegotiations and about the need for a regulator that restores ex-ante efficiency. Similarly, in the private sector, firms could recognize the postulated consumer profiles and focus their resources on anxious, too-optimistic or potentially addictive consumers; this, again, provides some justification about the need for a regulator.
Originality/value
In traditional exponential discounting, the marginal rate of substitution of consumption between two points depends only on their distance; thus, it allows none of the intertemporal inconsistencies we often observe in real life. Therefore, hyperbolic discounting better fits the data. The authors model choice under uncertainty and focus on the costs caused when present biases (ex-post) push behaviour away from ex-ante optimality. They conclude by proposing experimental designs to further enhance the estimation and implications of these costs. The postulated refinements have the potential to improve previous analyses on commitment devices and commitment-related regulation.
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Diego Escobari and Alejandro Serrano
The purpose of this paper is to model asymmetric information and study the profitability of venture capital (VC) backed initial public offerings (IPOs). The mixtures approach…
Abstract
Purpose
The purpose of this paper is to model asymmetric information and study the profitability of venture capital (VC) backed initial public offerings (IPOs). The mixtures approach endogenously separates IPOs into differentiated groups based on their returns’ determinants. The authors also analyze the factors that affect the probability that IPOs belong to a specific group.
Design/methodology/approach
The authors propose a new method to model asymmetric information between investors and firms in VC backed IPOs. The approach allows the authors to identify differentiated companies under incomplete information. The authors use a sample of 2,404 US firms from 1980 through 2012 to estimate the mixture model via maximum likelihood.
Findings
The authors find strong evidence that companies can be separated into two groups based on how IPO returns are determined. For companies in the first group the results are similar to previous studies. For companies in the second group the authors find that profitability is mainly affected by the reputation of the seed VC and capital expenditures. Tangible assets and age help explain group affiliation. The authors also motivate the findings for a continuum of heterogeneous IPO groups.
Practical implications
The proposed mixture approach helps decrease asymmetric information for investors, regulators, and companies.
Originality/value
The mixture methods help decrease asymmetric information between investors and firms improving the probability of making profitable investments. Separating between groups of IPOs is crucial because different determinants of an IPO operating performance can potentially have opposite effects for different groups.
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Alejandro J. Useche, Jennifer Martínez-Ferrero and Giovanni E. Reyes
The goal is to investigate the relationship between financial performance and environmental, social and governance (ESG) indicators and disclosures for a sample of Latin American…
Abstract
Purpose
The goal is to investigate the relationship between financial performance and environmental, social and governance (ESG) indicators and disclosures for a sample of Latin American firms.
Design/methodology/approach
Dynamic panel data regressions are used to analyze a sample of 114 companies listed on the Latin American Integrated Market, MILA (Chile, Colombia, Mexico and Peru) for the period 2011–2020. The Altman Z-score and Piotroski F-score are used as indicators of the probability of default and comprehensive financial strength. Models are developed in which the relationship between economic value added (EVA) and Jensen’s alpha are evaluated against firms’ ESG practices.
Findings
A direct relationship between ESG strategies and financial performance was found. Better practices and transparency in ESG are related to lower probability of bankruptcy, greater financial strength, greater EVA and superior risk-adjusted returns.
Research limitations/implications
ESG data were obtained from the Bloomberg system based on a methodology that may differ from other sources. The sample covers four Latin American countries and large corporations. Independent variables were selected for their perceived validity, given their frequent use in previous studies.
Practical implications
Evidence for company management regarding the importance of strengthening ESG practices and reporting should be part of their balanced scorecards. For investors, the results support the importance of evaluating ESG practices in asset selection.
Originality/value
The present study is the first research to present empirical evidence on the relationship between ESG scores and disclosures for MILA countries, using a comprehensive set of financial performance indicators (Altman Z-scores, Piotroski F-scores, EVA and Jensen’s alpha).
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Behzad Gholampour, Alireza Noruzi, Alireza Elahi, David Barranco Gil and Sajad Gholampour
The purpose of this study is to draw a scientific map of the Grand Tours cycling as part of the growing research field in this field at the global level. This study also…
Abstract
Purpose
The purpose of this study is to draw a scientific map of the Grand Tours cycling as part of the growing research field in this field at the global level. This study also identifies the components of scientific production in this field along with their collaboration patterns.
Design/methodology/approach
With the aim of achieving a comprehensive and deep understanding of the studies related to the Grand Tour, this research aims to address the existing gaps and provide a comprehensive summary of these scholarly works. To achieve this goal, the authors used a systematic and scientometric combination method, analyzing studies from the past half century (1970–2022).
Findings
The research findings reveal that scientific studies related to cycling events exhibit a geographical concentration within the continent of Europe, surpassing other continents. Notably, Spain, the USA, the UK and Italy emerge as pioneers in this field of inquiry. The main themes identified in these studies encompass cycling, the Tour de France, performance, professional roa cycling, heart rate, endurance, doping and power output.
Practical implications
This research, along with other systematic studies, contributes to the existing literature in this field by providing both quantitative and qualitative data. Additionally, the study serves as a foundation for identifying active and influential countries, institutions and authors in this domain. Such insights are highly effective in establishing scientific focal points in this field.
Originality/value
This study, in conjunction with the introduction of key figures in mega cycling event research, sheds light on the thematic areas explored within these studies. Notably, it is the sole study that has illuminated hidden facets of this field using scientometric and systematic methods.
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Michel Coulmont, Stacey Loomis, Sylvie Berthelot and Francesco Gangi
In this chapter, I analyze the behavior of banks in Chile, Colombia, and Mexico between 2005 and 2014. With data from the regulatory institutions of these countries, I show the…
Abstract
In this chapter, I analyze the behavior of banks in Chile, Colombia, and Mexico between 2005 and 2014. With data from the regulatory institutions of these countries, I show the influence of their institutions on the performance of banks. The World Bank provides two main datasets that measure the institutional characteristics of each country. Their doing business data set computes the ease of doing business while the governance data set measures the effectiveness of government and the perception that people have of their own governments. The results show that voice and accountability, which is a variable that measures the ability of citizens to select their government and participate in society, has a strong effect in the performance of loans. However, these institutional variables seem to have little effect on the volatility of profits.
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Ainsworth Anthony Bailey, Carolyn M. Bonifield, Alejandro Arias and Juliana Villegas
Service providers have a vested interest in enhancing adoption of technologies that improve the customer service experience. Buoyed by this idea, this paper aims to explore Latin…
Abstract
Purpose
Service providers have a vested interest in enhancing adoption of technologies that improve the customer service experience. Buoyed by this idea, this paper aims to explore Latin American consumers’ mobile payment (MP) adoption, conceptualized as bank-sponsored mobile wallets that facilitate payment at the point-of-purchase. This paper applies a revised unified theory of acceptance and use of technology 2 (UTAUT2) model as theoretical framework for this exploration.
Design/methodology/approach
To test the conceptual model of MP adoption in Latin America put forward in this paper, the authors used Colombia as a sample site and conducted two studies among a sample of consumers in this country. Completed questionnaires from 186 participants (Study 1) and 398 participants (Study 2) were used in data analyses, which were conducted using Mplus 8.4 and PROCESS.
Findings
In Study 1, performance expectancy, social influence, bank trust, confidence in MP system and consumer innovativeness all impact consumers’ MP use intention; and use intention impacts MP behavior. In Study 2, involving a wider sample, performance expectancy, effort expectancy, facilitating conditions, perceived quality of the MP system, bank trust, consumer innovativeness, consumer optimism and consumer insecurity all affect MP use intention; and use intention significantly impacts MP behavior. Across both studies, follow-up analysis showed that effort expectancy influences performance expectancy for MP and indirectly influences MP use intention through its impact on performance expectancy. Bank trust also indirectly affects MP use intention through its effects on system confidence. In Study 2, age did not affect MP use intention or MP use; however, education affected MP use.
Research limitations/implications
The theoretical underpinning for the conceptual model was the UTAUT2, and the results across the two studies support previous research in which this revised model has been useful in explaining technology adoption. Core elements of the UTAUT2 such as performance expectancy, effort expectancy, facilitating conditions and social influence had different impact on MP adoption in Latin America, depending on the sample. Technology readiness index motivators and inhibitors also aid understanding of MP adoption.
Practical implications
The research provides insights on the variables that members of the MP ecosystem in Latin America (e.g. banks and other service providers, card issuers) need to address in getting Latin American consumers to use MP.
Originality/value
This research extends the exploration of MP to a region of the world that has not been the focus of prior studies on the adoption of this technology and responds to calls by some researchers to increase research in this region. The conceptual models in the two studies also incorporate trust in the banks that are part of the MP ecosystem in Latin America and consumer overall confidence in this MP ecosystem. The results show that both these factors are influential in Latin American consumers’ adoption of MP. System confidence also mediates the relationship between bank trust and MP use intention.
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Jun Kang, Thomas Brashear-Alejandro, Anthony K. Asare and Sixing Chen
This study aims to examine the role of channel strategies in value appropriation and their effects on firm value with the consideration of situational factors.
Abstract
Purpose
This study aims to examine the role of channel strategies in value appropriation and their effects on firm value with the consideration of situational factors.
Design/methodology/approach
An empirical study with secondary data is conducted in the context of public franchised channels. The authors use Entrepreneur Franchise Top 500 (2012) as the sampling frame and merge the data from three sources to create the final data set. A set of models are built to test the hypotheses in a hierarchical manner.
Findings
Value appropriation provides a solid rationale to link marketing channel strategies to firm value. Channel integration is an effective strategy driving intangible firm value. The influence of channel compression on intangible firm value depends on its interaction with other marketing environmental variables.
Research limitations/implications
First, the sample size in this study is relatively small though these samples show high representativeness. Second, the empirical analysis in this study focuses on the franchised channels because of data availability.
Practical implications
Managers should consider the role of value appropriation when developing new channel strategies. A channel strategy deserves firm-level attention and resources because of its relevance to firm value. Managers should examine channel environment carefully and deploy internal resources to augment the potential of value appropriation strategies in channels.
Originality/value
This study is among the first to investigate the value relevance of marketing channel strategies from a value appropriation perspective. It identifies profit appropriation and resource appropriation as two mechanisms of value appropriation in marketing channels and uses these two processes to link channel integration and channel compression strategies with firm value.
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Christian Chelariu, Anthony Kwame Asare and Thomas Brashear-Alejandro
– The aim of this paper is to develop a comprehensive framework of supply chain performance that includes relationship, operational, strategic and economic performance measures.
Abstract
Purpose
The aim of this paper is to develop a comprehensive framework of supply chain performance that includes relationship, operational, strategic and economic performance measures.
Design/methodology/approach
The literature regarding inter-organizational performance including: supply chain management, logistics and marketing performance measures is reviewed. A synthesis of the review provides the foundation for developing a comprehensive model of supply chain management performance.
Findings
The review and synthesis finds that supply chain performance focuses primarily on operational and economic performance measures while paying less attention to relational and strategic performance measures. The comprehensive framework identifies four major categories of supply chain performance measures: relational; operational; strategic; and economic – hence the name ROSE.
Originality/value
This comprehensive framework identifies four types of supply chain measures that can be used as a guiding framework by both academics and practitioners. The paper also offers directions for future work in the form of propositions.
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Gonzalo Lorenzo, Alejandro Lorenzo-Lledó, Asunción Lledó and Elena Pérez-Vázquez
Diversity is one of the main characteristics of modern societies. To be teachers and trainers, it is necessary to use all the tools to respond to students with diversified needs…
Abstract
Purpose
Diversity is one of the main characteristics of modern societies. To be teachers and trainers, it is necessary to use all the tools to respond to students with diversified needs. Therefore, the main aim of this study is to review the scientific production in Web of Science (WOS) and SCOPUS of 1996-2019 on the application of Virtual reality in people with Autism Spectrum Disoders (ASD) for the improvement of social skills.
Design/methodology/approach
For this purpose, two databases have been used: The Web of Science (WOS) and SCOPUS from the advanced search tab. After applying the search terms, 267 documents were obtained which were analysed according to a series of indicators.
Findings
The results indicate that the period 2016-2019 was the most productive and that SCOPUS has a focus on conferences and WOS is intended for journals. Furthermore, in SCOPUS, there are journals with higher quartiles (Q1) than in WOS. The study shows the great importance of virtual reality in people with ASD and its recent dissemination.
Originality/value
Currently, to the best of the authors’ knowledge, there are no studies on the use of virtual reality in people with ASD using bibliometric indicators. The study allows us to know which databases publish higher quality research. Likewise, information can be obtained about the most productive centres and the most important authors on the subject.