This paper aims to investigate the relationship between residential real estate prices and unemployment rates at the Metropolitan Statistical Area (MSA) level.
Abstract
Purpose
This paper aims to investigate the relationship between residential real estate prices and unemployment rates at the Metropolitan Statistical Area (MSA) level.
Design/methodology/approach
This paper uses a long time-series of MSA-level quarterly data from 1990 to 2018. It uses an instrumental variable approach to estimate the effects of residential real estate prices on unemployment rates using the geography-based land constraints measure of Saiz (2010) as the instrument.
Findings
The results show that changes in residential real estate prices do not have a causal effect on unemployment rates in the same quarter. However, it takes 9-12 months for an increase (decrease) in real estate prices to decrease (increase) unemployment rates. This effect is significant during both pre- and post-financial crisis periods and robust to control for the economic characteristics of MSAs.
Research limitations/implications
This paper contributes to the emerging literature that studies the real effects of real estate. Particularly, the methodology and the findings can be used to investigate causal relationships between housing prices and small business development or economic growth. The findings are also of interest to policymakers and practitioners as they illustrate how and when real estate price shocks propagate to the real economy through unemployment rates.
Practical implications
This study’s findings have important implications for academics, policymakers and investors as they provide evidence of a snowball effect associated with shocks to real estate prices: increasing (decreasing) unemployment rates following a decrease (increase) in real estate prices exacerbates the real estate price movements and their economic consequences.
Originality/value
This paper analyzes a significantly longer period, from 1990 to 2018, than the existing literature. Additionally, it uses the MSA-level land unavailability measure of Saiz (2010) as an instrument to explore the effects of residential real estate prices on unemployment rates and when those effects are observed in the real economy.
Details
Keywords
Xiang Gao and John Topuz
This paper aims to investigate whether the cyclicality of local real estate prices affects the systematic risk of local firms using a geography-based measure of land availability…
Abstract
Purpose
This paper aims to investigate whether the cyclicality of local real estate prices affects the systematic risk of local firms using a geography-based measure of land availability as a quasi-exogenous proxy for real estate price cyclicality.
Design/methodology/approach
This paper uses the geography-based land availability measure as a proxy for the procyclicality of real estate prices and the location of a firm’s headquarters as a proxy for the location of its real estate assets. Four-factor asset pricing model (market, size, value and momentum factors) is used to examine whether firms headquartered in more land-constrained metropolitan statistical areas have higher systematic risks.
Findings
The results show that real estate prices are more procyclical in areas with lower land availability and firms headquartered in these areas have higher systematic risk. This effect is more pronounced for firms with higher real estate holdings as a ratio of their tangible assets. Moreover, there are no abnormal returns to trading strategies based on land availability, consistent with stock market betas reflecting this local real estate factor.
Research limitations/implications
This paper contributes to the literature on local asset pricing factors, the collateral role of firms’ real estate holdings and the co-movement of security prices of geographically close firms.
Practical implications
This paper has important managerial implications by showing that, when firms decide on the location of their buildings (e.g. headquarters building, manufacturing plant and retail outlet), the location’s influence on systematic risk should be part of the decision-making process.
Originality/value
This paper is among the first to use a geography-based measure of land availability to study whether the procyclicality of local real estate prices influences firm risk independent of the procyclicality of the local economy. Thus, both the portfolio formed and firm-level analyses provide a more direct evidence of the positive relation between the procyclicality of local real estate prices and firm risk.
Details
Keywords
Zhizhen Chen, Frank Hong Liu, Jin Peng, Haofei Zhang and Mingming Zhou
We examine whether loan securitization has an impact on bank efficiency. Using a sample of large US commercial banks from 2002 to 2012, we find that bank loan securitization has a…
Abstract
We examine whether loan securitization has an impact on bank efficiency. Using a sample of large US commercial banks from 2002 to 2012, we find that bank loan securitization has a significant and positive impact on bank efficiency, and this relationship is stronger for banks with higher capital ratios, higher default risk, and lower level of liquidity and diversification. Our results are robust to Heckman self-selection correction and difference-in-difference (DID) analysis. In addition, these results are found mainly in non-mortgage loan securitizations but not in mortgage loan securitizations. Finally, we show that loan sales also have a positive impact on bank efficiency.
Details
Keywords
Murad Moqbel, Valerie L. Bartelt, Kazim Topuz and Kitty L. Gehrt
The purpose of this study is to investigate how enterprise social media (ESM) use combats turnover by impacting work perceptions, and ultimately turnover intention.
Abstract
Purpose
The purpose of this study is to investigate how enterprise social media (ESM) use combats turnover by impacting work perceptions, and ultimately turnover intention.
Design/methodology/approach
This study undertook a survey at a major information technology (IT) corporation. Data from a total of 276 working professionals were collected to test the proposed research model.
Findings
The structural equation modeling results show that ESM increase workplace integration; workplace integration decreased turnover intention, augmented job satisfaction and also reduced job tensions (perceived work stress) – job satisfaction and work stress perceptions influenced turnover intention.
Research limitations/implications
Low response bias is one of the limitations in this study, although this study used a priori and post hoc measures to mitigate non-response bias. This study contributed to the theory by improving our understanding of the role of ESM in combating turnover by impacting work perceptions through the lens of social capital and emotional dissonance theories. This study also has practical implications for managers. The results suggest that incorporating ESM within organizations improves employees' perceptions and behaviors – providing an option for managers to consider it as a way to save costs associated with employee turnover.
Originality/value
Although several studies have been conducted on ESM, our understanding of the impact of ESM on work perceptions and turnover is still far from complete. This paper helps to close the gap in literature by improving our understanding of how ESM combats turnover by influencing work perceptions in an organization, which provides an essential contribution to research and practice in the field.
Details
Keywords
Münevvere Yıldız and Letife Özdemir
Purpose: Investors and portfolio managers can earn profitably when they correctly predict when stock prices will go up or down. For this reason, it is crucial to know the effect…
Abstract
Purpose: Investors and portfolio managers can earn profitably when they correctly predict when stock prices will go up or down. For this reason, it is crucial to know the effect levels of the factors that affect stock prices. In addition to macroeconomic factors, the psychological behavior of investors also affects stock prices. Therefore, the study aims to reveal the different sensitivity levels of the stock index against macroeconomic and psychological factors.
Design/Methodology/Approach: In this study, dollar rate (USD), euro rate (EURO), time deposit interest rate (IR), gold price (GOLD), industrial production index (IPI), and consumer price index (CPI) (inflation (INF)) were used as macroeconomic factors, while Consumer Confidence Index (CCI) and VIX Fear Index (VIX) were used as psychological factors. In addition, the BIST-100 index, which is listed in Borsa Istanbul, was used as the stock index. The sensitivity of the stock index to macroeconomic and psychological factors was investigated using the Multivariate Adaptive Regression Spline (MARS) method using data from January 2012 to October 2020.
Findings: In the analyses performed using the MARS method, the coefficients of INF, USD, EURO, IR, CCI, and VIX Index were found to be statistically significant and effective on the stock index. Among these variables, INF has the highest effect on stocks. It is followed by USD, IR, EURO, CCI, and VIX. GOLD and IPI variables did not show statistical significance in the model. The most important difference of the MARS model from other regressions is that each factor’s effect on the stock index is analyzed by separating it according to the value of the factor. According to the results obtained from the MARS model: (1) it has been determined that USD, EURO, IR, and CPI have both positive and negative effects on the stock market index and (2) CCI and VIX have been found to have negative effects on stocks. These results provide essential information about how investors who plan to invest in the stock index should take into consideration different macroeconomic and psychological values.
Originality/value: This study contributes to the literature as it is one of the first studies to examine the effects of factors affecting the stock index by decomposing it according to the values it takes. Also, this study provides additional information by listing the factors affecting the stock index in order of importance. These results will help investors, portfolio managers, company executives, and policy-makers understand the stock markets.
Details
Keywords
Wilkista Lore Obiero and Seher Gülşah Topuz
This study aims to determine whether there is an effect of internal and public debt on income inequality in Kenya for the period 1970–2018.
Abstract
Purpose
This study aims to determine whether there is an effect of internal and public debt on income inequality in Kenya for the period 1970–2018.
Design/methodology/approach
The relationship is examined by using the Autoregressive Distributed Lag (ARDL) model by Pesaran et al. (2001) and Toda Yamamoto causality by Toda and Yamamoto (1995).
Findings
Our findings suggest that both internal and public debt harm inequality in Kenya in the long term. Furthermore, a one-way causality from internal debt to income inequality is also obtained while no causality relationship is found to exist between public debt and income inequality. Based on these findings, the study recommends that to reduce income inequality levels in Kenya, other methods of financing other than debt financing should be preferred because debt financing is not pro-poor.
Originality/value
This study is unique based on the fact that no previous paper has analysed the debt and inequality relationship in Kenya. To the best of our knowledge, this will be the first study to analyse the applicability of redistribution effect of debt in Kenya. The study is also different in that it provides separate analysis for public debt and internal debt on their effects on income inequality.
Details
Keywords
Sevinç Sevim Kahya, Yasemin Sönmez, Güngör Gündüz and Bora Mavis
The purpose of this paper is to enhance the limited fluorescence of mica titania (MT) effect pigments by coating them with peripherally substituted zinc phthalocyanines (ZnPc).
Abstract
Purpose
The purpose of this paper is to enhance the limited fluorescence of mica titania (MT) effect pigments by coating them with peripherally substituted zinc phthalocyanines (ZnPc).
Design/methodology/approach
The effects of deposition medium, temperature, time, initial organic pigment/MT ratio on deposition behaviour and efficiencies were investigated separately for ZnPc, nitro (TNZnPc) and amino (TAZnPc) substituted ZnPc’s.
Findings
TNZnPc could be deposited in the form of well-defined crystals on MT with per cent 64 ± 5 efficiency in chloroform at 50°C within 5 h and the amount deposited was linearly dependent on the initial TNZnPc concentration. TNZnPc fluorescence emissions, which appear mainly at 460 and 685 nm in pure pigments, could be observed in combination with MT (MT-TNZnPc) as well. A spectral analysis on the non-overlapping region of the spectrum with two different excitations (385 and 630 nm) revealed that, respectively, up to threefold to sixfold increase is possible to attain, depending on the excitation wavelengths.
Research limitations/implications
Efficiency of deposition could not be taken above per cent 11 ± 4 with TAZnPc. Although ZnPc could be deposited with per cent 57 ± 3 efficiency, the pigment was not effective in imposing its fluorescence characteristics over MT.
Originality/value
Combining inorganic effect pigments with organic dye molecules is an idea that has been elaborated mainly for producing different colour effects and stabilization of dye molecules against agglomeration. Here, for the first time, it is used to enhance the fluorescence of the effect pigments.
Details
Keywords
Mehmet Bozoglu, Abdulbaki Bilgic, Chung L. Huang, Wojciech J. Florkowski and Bakiye Kilic Topuz
The purpose of this paper is to examine urban households’ willingness to pay (WTP) for milk safety and to analyze the factors affecting WTP premiums using data obtained from…
Abstract
Purpose
The purpose of this paper is to examine urban households’ willingness to pay (WTP) for milk safety and to analyze the factors affecting WTP premiums using data obtained from surveys conducted in Samsun and Trabzon provinces, Turkey.
Design/methodology/approach
Contingent valuation and censoring methods including the error-dependent bivariate Heckman SS model were used for estimating WTP for milk safety and its effective factors, respectively.
Findings
The study indicates that 68 percent of the households were willing to pay 0.35 per liter for improving the safety of milk. The model results show that satisfaction with food safety standards, being married and full-time employment have statistically significant positive effects on the WTP for ISO-certified milk. However, purchasing milk from farmers or open-air markets, age, having a child six-year old or younger, and high school or higher education have statistically significant negative effects on the WTP for ISO-certified milk.
Research limitations/implications
The main limitation of the current study is that only urban consumers’ WTP and effective factors for milk safety were examined in two provinces of Turkey.
Practical implications
More rigorous implementations of food safety standards, traceability systems and effective educational campaigns could promote households’ food safety awareness and increase their demand for milk safety.
Social implications
Knowing what factors are involved in consumer WTP is extremely important for decision makers to create new social policies in the region or country.
Originality/value
A similar study has not been conducted in Turkey. The novelty of this study is the specification and robust estimation of three different but competing models to reveal the wide range of WTP amounts for safe milk.
Details
Keywords
Murtaza Nasir, Carole South-Winter, Srini Ragothaman and Ali Dag
The purpose of this paper is to formulate a framework to construct a patient-specific risk score and therefore to classify these patients into various risk groups that can be used…
Abstract
Purpose
The purpose of this paper is to formulate a framework to construct a patient-specific risk score and therefore to classify these patients into various risk groups that can be used as a decision support mechanism by the medical decision makers to augment their decision-making process, allowing them to optimally use the limited resources available.
Design/methodology/approach
A conventional statistical model (logistic regression) and two machine learning-based (i.e. artificial neural networks (ANNs) and support vector machines) data mining models were employed by also using five-fold cross-validation in the classification phase. In order to overcome the data imbalance problem, random undersampling technique was utilized. After constructing the patient-specific risk score, k-means clustering algorithm was employed to group these patients into risk groups.
Findings
Results showed that the ANN model achieved the best results with an area under the curve score of 0.867, while the sensitivity and specificity were 0.715 and 0.892, respectively. Also, the construction of patient-specific risk scores offer useful insights to the medical experts, by helping them find a trade-off between risks, costs and resources.
Originality/value
The study contributes to the existing body of knowledge by constructing a framework that can be utilized to determine the risk level of the targeted patient, by employing data mining-based predictive approach.
Details
Keywords
Midiala Oropesa Vento, Jorge Luis García Alcaraz, Aidé Aracely Maldonado Macías and Valeria Martínez Loya
The purpose of this paper is to analyze the effects of both managerial commitment and the professional development of human resources on the benefits obtained from Kaizen…
Abstract
Purpose
The purpose of this paper is to analyze the effects of both managerial commitment and the professional development of human resources on the benefits obtained from Kaizen implementation at the planning stage in Mexican maquiladora companies.
Design/methodology/approach
As part of the methodology, a questionnaire is validated and administered to 423 workers in different companies from the states of Tabasco, Baja California, Sinaloa and Chihuahua. Moreover, a structural equation model is proposed to relate four latent variables: two concerning managerial commitment and the professional development of human resources, and two more related to the kinds of benefits obtained (economic and for human resources).
Findings
Results demonstrate that managerial commitment has a direct and positive impact on economic benefits and those for human resources. The major contribution of this study is, however, the determination of dependency measures between these variables.
Practical implications
This research contributes to the improvement and change, since the results of the research can be extended to the sustainability of other improvement activities, presenting additional areas for future research, such understanding will increase the likelihood that the results of application of Kaizen are sustained, eliminating waste and improving support within the organization. Finally, this research makes contributions to the field of industrial engineering and management disciplines of engineering and operations management, as it focusses on the improvement of integrated systems of people, materials, information, equipment and energy, these systems they are integral to the modeling of this investigation.
Originality/value
This study tests the hypotheses and their relation to the sustainability of Kaizen in time for them to use the analysis technique of structural equations. For the author, this is the first study to determine the causal relationships between the critical success factors and benefits of Kaizen, determining a measure of dependence between them.