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Previous Empirical Work (previous + empirical_work)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting60%

Selected Abstracts

Trade Credit Terms Offered by Small Firms: Survey Evidence and Empirical Analysis

JOURNAL OF BUSINESS FINANCE & ACCOUNTING, Issue 3-4 2002
Nicholas Wilson
Trade credit has been shown to be an important source of short-term finance for smaller firms but small firms are also suppliers of trade credit. There is little empirical evidence on the credit granting decisions of small firms. Previous empirical work (Petersen and Rajan, 1997; and Ng, Smith and Smith, 1999) has focused on credit granting and investment in accounts receivable in larger firms. In this paper we look at the influences on credit granting for the smallest firms, using a sample of firms with an average of 10 employees. As in previous studies we find that product and demand characteristics influence credit terms. Moreover, we find evidence that firm size affects credit extension choices directly by setting limits on the possibilities for economies of scale, but it also impacts indirectly by affecting the firm's access to finance and its bargaining strength vis-à-vis suppliers. The dominant position of larger customers in bargaining with small suppliers constrains the impact of other factors on the firm's choice of credit terms. Small firms are also under pressure to conform to industry norms, although lack of resources can be a limiting factor. Constrained firms may make use of two-part terms in an attempt to improve their cashflow. [source]

Experimentally manipulated high in-group status can buffer personal self-esteem against discrimination

EUROPEAN JOURNAL OF SOCIAL PSYCHOLOGY, Issue 5 2005
Michael J. Platow
We present an experiment in which the relative status of an in-group and the discriminatory nature of a decision maker's intergroup behaviour (in-group-favouring/out-group-favouring/even-handed) were independently manipulated to observe their effects on self-esteem. Adopting a Social Identity Theory framework, and following from previous empirical work, we predicted that discrimination against one's in-group would lead to lower self-esteem among members of a low-status group but not among members of a high-status group. This prediction was confirmed. Copyright © 2005 John Wiley & Sons, Ltd. [source]

Movers and Shuckers: Interdependent Prepayment Decisions

REAL ESTATE ECONOMICS, Issue 3 2001
John M. Clapp
We model competing risks of mortgage termination where the borrower faces a repeated choice to continue to pay, refinance the loan, move or default. Most previous empirical work on mortgage prepayment has ignored the distinction between prepayments triggered by refinancing and moving, combining them into a single prepayment rate. We show that financial considerations are the primary drivers of the refinance choice while homeowner characteristics have more influence on the move decision. We demonstrate that these differences are statistically significant and that combining these two distinct choices into a single measure of prepayment shifts coefficients toward zero and produces inaccurate predictions of aggregate termination rates. For example, a combined model underestimates the effect of the market price of the loan on refinancing; it misses entirely the opposite effects of borrower income on moving and refinancing. Our results suggest that existing prepayment models are inconsistent predictors of mobility-driven prepayment and underestimate the effect of market conditions and borrower characteristics on refinancing and housing decisions. Our findings have great significance to mortgage investors because mobility-driven prepayments are likely to be a more significant source of prepayments in thenext decade. [source]

DEPOSITOR DISCIPLINE, REGULATORY CONTROL, AND A BANKING CRISIS: A STUDY OF INDIAN URBAN COOPERATIVE BANKS

ANNALS OF PUBLIC AND COOPERATIVE ECONOMICS, Issue 4 2007
Niranjan CHIPALKATTI
ABSTRACT,:,Urban Cooperative banks in India (UCBs) play an important role in mobilizing resources from lower and middle-income groups and in providing direct finance to small entrepreneurs and traders. Motivated by previous empirical work on depositor disciplining behaviour, this paper examines whether depositors punish weak UCBs by withdrawing deposits during and after a banking crisis. In addition, the paper investigates the impact of tightened prudential standards imposed by the Indian central bank (RBI) on the ratio of investments to loan assets and on the rate of growth of loans. Our sample of 45 UCBs is partitioned into strong and weak banks and subjected to econometric testing. Our analysis reveals that a banking crisis is associated with a contraction in deposits across the sample. However, weak banks appear to be disciplined by depositors during election years. We also find weak support for the contention that banks reduced loans when faced with intensified regulatory scrutiny in the aftermath of a crisis. [source]

Does One Trust Judgement Fit All?

BRITISH JOURNAL OF POLITICS & INTERNATIONAL RELATIONS, Issue 2 2010
Empirics, Linking Theory
Few questions in political science have received more attention in recent times than the role of trust in democracy, democratic government and political participation. In Britain this has become a particular concern as levels of democratic engagement in traditional politics have declined, exacerbated by media reports of politicians' untrustworthy behaviour. A common feature of previous empirical work on political trust is that trust is treated as a single theoretical concept. Scholars have assumed that trust operates in a similar fashion across different political institutions,that citizens' trust mechanisms are the same for trusting parliament, the prime minister or the European Union. As a consequence, the operationalisation of trust has generally been through a single measure. In this article we draw on recent research from political theory, where different forms of judgements whether to trust,strategic, moral and deliberative,have been conceptualised, to argue that trust judgements may vary in application and significance depending upon the institution under examination. Using specially designed data sets generated from YouGov's weekly omnibus and the British Election Study's Continuous Monitoring Panel, we operationalise these three forms of trust judgements to examine trust in two British institutions,political parties and politicians. We find, as hypothesised, that different forms of trust judgements are of differing significance depending upon the institution under consideration. [source]