A study of incentives in charitable fundraising

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ernan Haruvy ◽  
Peter Popkowski Leszczyc
Keyword(s):  
Latent Variable ◽  
Field Experiments ◽  
Monetary Incentives ◽  
Content Type ◽  
Lack Of Control ◽  
Short Run ◽  
Extrinsic Motivators ◽  
Crowd Out ◽  
Intrinsic Motivators ◽  
Practical Implications

Purpose The purpose of this study is to determine how self-driven (intrinsic motivators) and monetary incentives (extrinsic motivators) are mediated by an effort to affect fundraising outcomes. This integration sheds light on crowding out between the two types of incentives as well the drivers of fundraising outcomes, specifically effort and donations. Design/methodology/approach A field experiment is conducted over a two-month period, involving an online fundraising campaign with over 300 volunteers assigned to one of five different incentive conditions. A special website was created to monitor fundraiser efforts. Fundraisers filled out pre- and post-study surveys. Findings While high monetary incentives result in the greatest immediate increase in funds raised, they crowd out future intentions to volunteer once incentives are withdrawn. Mediation analyzes show that fundraiser effort fully mediates the effect of intrinsic motivators and partially mediates the direct effect of extrinsic motivators on funds raised. Research limitations/implications A major limitation of field experiments is the lack of control, resulting in higher variation. However, while a more controlled experiment will reduce this variation, this goes at the expense of lower external validity. Practical implications Results indicate that – at least in the short run – monetary incentives can result in higher fundraising outcomes. However, this goes at the expense of a reduction in future volunteering once the incentives are withdrawn. Originality/value This study examines whether extrinsic or intrinsic motivators have a greater impact on funds raised and whether extrinsic motivators crowd out future intentions to volunteer. Different from previous research in which effort is a latent variable, the effort is directly observed over time.

“Please tidy up before leaving”: nudging Airbnb guests toward altruistic behavior

2019 ◽  
Vol 13 (4) ◽  
pp. 524-530 ◽  
Author(s):  
Paul Ranson ◽  
Daniel Guttentag
Keyword(s):  
Social Presence ◽  
Design Methodology ◽  
Field Experiments ◽  
Experimental Results ◽  
Altruistic Behavior ◽  
Content Type ◽  
The Social ◽  
Relationship Model ◽  
Social Market ◽  
Practical Implications

Purpose This study aimed to investigate whether increasing the social presence within an Airbnb lodging environment could nudge guests toward altruistic cleaning behaviors. Design/methodology/approach The study was based around a theoretical framework combining the social-market versus money-market relationship model, nudge theory and social presence theory. A series of three field experiments were conducted, in which social presence was manipulated to test its impact on guest cleaning behaviors prior to departure. Findings The experimental results confirmed the underlying hypothesis that an Airbnb listing’s enhanced social presence can subtly induce guests to help clean their rental units prior to departure. Originality/value This study is the first to examine behavioral nudging in an Airbnb context. It is also one of the first field experiments involving Airbnb. The study findings offer clear theoretical and practical implications.

Shapeholders: managing them as allies, partners and significant constituents

2017 ◽  
Vol 45 (5) ◽  
pp. 41-48 ◽  
Author(s):  
Oleksiy Osiyevskyy ◽  
Vladyslav Biloshapka
Keyword(s):  
Business Models ◽  
Social Activism ◽  
Business Success ◽  
Content Type ◽  
Building Relationships ◽  
The Public ◽  
Short Run ◽  
Common Interests ◽  
The Subject ◽  
Practical Implications

Purpose The authors review the concept of building relationships with Shapeholders,: a broad group of players that have no financial stake in the company yet can substantively influence it. The process for doing this is the subject of a new book by Mark Kennedy, Shapeholders: Business success in the age of social activism. Design/methodology/approach The authors examine Mark Kennedy’s framework for managing the firm’s shapeholders, a model composed of seven basic steps (7A’s): Align with a purpose, Anticipate, Assess, Avert, Acquiesce, Advance common interests, and Assemble to win. Findings Managing corporate reputation in alliance with enlightened shapeholders is a potential defense against self-aggrandizing schemes to wantonly maximize shareholder value in the short run. Practical implications Managing shapeholders is part of the messy democratic process that works when power is apportioned fairly among those affected by a firm’s decisions, and this process underpins the winning business models of true market leaders. Social implications Stakeholders previously discredited as mere “mosquitos” have gained new power, particularly when their legitimate concerns and unfair treatment resonate with the interests of a significant segment of the public and influential shapeholders. Originality/value Shapeholders can create enormous opportunities for smart managers capable of effectively engaging with them.

Equity market timing and capital structure: evidence on post-IPO firms in Indonesia

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dewi Ratih
Keyword(s):  
Capital Structure ◽  
Market Timing ◽  
Equity Market ◽  
Content Type ◽  
Corporate Capital ◽  
Corporate Capital Structure ◽  
Short Run ◽  
Practical Implications ◽  
Equity Market Timing

Purpose The purpose of this paper is to analyze and evaluate the impacts of equity market timing on corporate capital structure policies in Indonesia by apply Baker and Wurgler’s analytical approach to firms in Indonesia to see, first, if that approach applies to Indonesian firms and, second, if it can be generalized to other emerging markets. Design/methodology/approach This study will focus on capital structure policies based on Market Timing Theory in developing countries, which uses the panel data of companies listed in Indonesian Stock Exchange after IPO. The companies used as research object are 70 firms in the non-financial/non-banking sector with the observation period of 2000–2015. The period of measurement is five years after IPO. Using a past market value in which equity market timing is measured in two-time measurements, i.e. yearly timing and long-term timing to prove its persistence. Findings Consistent with equity market timing theory, the results suggest that firms tend to issue equities when their market valuations are relatively higher than their book values and their past market values are high. As a consequence, the firms become underleveraged or have their debts reduced in the short run. The results of long-term measurement on equity market timing do not appear to affect the firms’ capital structure decisions due to the firms’ relatively quick adjustments of optimal capital structures. The conclusion is that equity market timing is an important element in the short run but not in the long run. Research limitations/implications The results of this study describe how firms in Indonesia take advantage of temporary market share fluctuations through equity market timing in their capital structure policies before ultimately making adjustments to the directions they are targeting. Practical implications The use of equity market timing is more aimed at reducing the debt ratio and avoiding unfavorable conditions in the debt market, as well as taking advantage of the capital gains derived from the differences in their stock prices. This study also has practical implications on investment policies that need to consider the adaptation factor of the industrial environment when it comes to making capital structure decisions, including how the entity must take policy when uncertain economic conditions. Social implications Through the research behavior of capital structure more in-depth decision is expected to provide an overview for investors widely in determining investment policy. Thus, the investment strategy is more planned and can also anticipate unexpected conditions. Originality/value This research is the first study to analyze and to evaluate the impacts of equity market timing on corporate capital structure policies on post-IPO firms in Indonesia. This research is an empirical study that investigates the relevance of equity market timing considerations in the determination of debt-equity choices in the capital structure, included in the conditions of the global financial crisis.

Return and co-movement of major public real estate markets during global financial crisis

2017 ◽  
Vol 35 (5) ◽  
pp. 489-508 ◽  
Author(s):  
Kim Hiang Liow ◽  
Shao Yue Angela
Keyword(s):  
Financial Crisis ◽  
Real Estate ◽  
Global Financial Crisis ◽  
Content Type ◽  
Real Estate Markets ◽  
The Public ◽  
Movement Dynamics ◽  
The Usa ◽  
Short Run ◽  
Practical Implications

Purpose The purpose of this paper is to investigate the volatility spectral of five major public real estate markets, namely, the USA, the UK, Japan (JP), Hong Kong (HK), and Singapore (SG), during the pre- and post-global financial crisis (GFC) periods. Design/methodology/approach First, univariate spectral analysis is concerned with discovering price cycles for the respective real estate markets. Second, bivariate cross-spectral analysis seeks to uncover whether any two real estate price series share common cycles with regard to their relative magnitudes and lead-lag patterns of the cyclical variations. Finally, to test the contagion effects, the authors estimate the exact percentage change in co-spectral density (cyclical covariance) due to high frequencies (short run) after the GFC. Findings The authors find that whilst none of the public real estate markets examined are spared from the crisis, the three Asian markets were less severely affected by the GFC and were accompanied by a reversal in volatility increase three years post-global financial crisis. Additionally, the public real estate markets studied have become more cyclically linked in recent years. This is particularly true at longer frequencies. Finally, these increased cyclical co-movements measure the outcomes of contagion and indicate fairly strong contagious effects between the public real estate markets examined due to the crisis. Research limitations/implications The implication of this research is that benefits to investors from international real estate diversification may not be as great during the present time compared to previous periods because national public real estate markets have become more correlated. Nevertheless, the findings do not imply the complete absence of diversification benefits. This is because although cyclical correlations increase in the short run, many of the correlation values are still between low and moderate range, indicating that some diversification benefits may still be realized. Practical implications Given the significant market share and the highest levels of securitization in Asia-Pacific markets including JP, HK/China, and SG, this cyclical research including major public real estate markets has practical implications for ongoing international real estate investment strategies, particularly for the USA/UK and Asian portfolio managers. Originality/value This paper contributes to the limited research on the cyclical return and co-movement dynamics among major public real estate markets during financial/economic crisis in international finance. Moreover, the frequency-domain analysis conducted in this paper adds to better understanding regarding the impact of GFC on the cyclical return volatility and co-movement dynamics of major developed public real estate markets in international investing.

Intrapreneurship in teams/groups: self-determination theory and compensation

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Subrata Chakrabarty
Keyword(s):  
Self Determination Theory ◽  
Self Determination ◽  
Content Type ◽  
Group Settings ◽  
Compensation Systems ◽  
Extrinsic Motivators ◽  
Conceptual Paper ◽  
Entrepreneurial Action ◽  
Intrinsic Motivators

PurposeThe literature on intrapreneurship recognizes the notion that regular employees can be expected to be entrepreneurial. Using self-determination theory as a basis, the purpose of this conceptual paper is to focus on the role of compensation systems in incentivizing entrepreneurial action by regular employees who constitute the bulk of the organizational workforce.Design/methodology/approachThis conceptual paper suggests that greater clarity on the role of compensation systems in entrepreneurial action by regular employees would require an understanding of how entrepreneurial action happens through relationships among employees. An exploration of both compensation systems and the relationships among employees undertaking entrepreneurial action as part of team/group settings can deepen our understanding of intrapreneurship. Self-determination theory and relationship-focused theory allow for such an exploration.FindingsThe literature on self-determination theory, has identified the needs of autonomy and relatedness among employees. This conceptual paper will propose that the interaction between compensation systems and the needs for autonomy versus relatedness among employees determines the type of relationships chosen for entrepreneurial action. After the chosen type of relationships are formed and entrepreneurial action begins, challenges in the implementation of compensation systems are likely to emerge – distributive justice issues under individual based compensation and free-riding issues under team-based compensation. The entrepreneurial performance of the team/group will likely be influenced by the interaction between the challenges in the implementation of compensation systems and the type of relationships chosen for entrepreneurial action.Originality/valueThis conceptual paper gives a new direction to how collective entrepreneurial processes and outcomes can be understood. Self-determination theory and relationship-focused theory, in unison, can be useful in analyzing the role of intrinsic motivators, extrinsic motivators, and relationships during entrepreneurial action.

Executive malfeasance: Surprisingly, honesty may not be the best policy

2019 ◽  
Vol 14 (3) ◽  
pp. 217-227
Author(s):  
Candace M. TenBrink
Keyword(s):  
Crisis Management ◽  
Event Study ◽  
Firm Value ◽  
Design Methodology ◽  
Abnormal Returns ◽  
Content Type ◽  
Long Run ◽  
Crisis Recovery ◽  
Short Run ◽  
Practical Implications

Purpose Research indicates honesty, ethics and leadership are critical during a crisis. This paper aims to examine that ideology by analyzing the role acceptance or denial of executive malfeasance has on firm value after a crisis. Design/methodology/approach This is an event study that examines crises attributed to executive malfeasance. These qualitative crises data are blended with an analysis of abnormal returns to assess differences between executive actions. Findings These results indicate that ethical and timely acceptance of a firm’s role in malfeasance does not appear to be rewarded by stockholders. These data also show that there is no reward for a delayed acceptance of malfeasance. Therefore, ethics and honesty do not appear to differentiate post-crisis recovery. Research limitations/implications This research focuses on a major factor of firm success – its value. It would be interesting to explore how stakeholders, beyond those that invest in the firm, impact the value over the long run. Practical implications While prior research indicates that honesty is prudent, this examination indicates that obfuscation does not impact firm value during a recovery. This study promotes questioning one’s ethical compass as a stock or stakeholder in malfeasance-mired firms. Originality/value In conflict with crisis-based research, this study reveals that honesty in crisis management does not always offer an advantage. The results indicate that value is multidimensional, and it may not be based on trust and ethics in the short run.

A convention for international trade (based on Islamic Sufi teachings)

2015 ◽  
Vol 57 (5) ◽  
pp. 522-551 ◽  
Author(s):  
Bijan Bidabad
Keyword(s):  
International Trade ◽  
Trade Barriers ◽  
Content Type ◽  
International Convention ◽  
Trade Relations ◽  
Short Run ◽  
History Of ◽  
Trade Partners ◽  
Present World ◽  
Practical Implications

Purpose – This paper aims to propose a procedure to remove international trade barriers globally. Trade is confronting various barriers in the present world, and this is due to the policies of governments to protect interests of their own citizens. Experience shows that trade barriers end up with incurring losses for both sides (traders) in practice, but a look at history of polemics on trade barriers removal in World Trade Organization (WTO) shows that countries are unable to overcome the obstacles they have created. Trade partners understand that removal of counter barriers is advantageous for both parties. In the meantime, being concerned of other party’s response impedes the benefits of free trade for all parties. Design/methodology/approach – This proposition is based upon Islamic Sufism teachings. The propounded principles and goals are in accordance with high understanding of social and economic subtleties of humankind’s life. The authors try to form and formalize Islamic Sufi teachings to establish a base for compiling new international convention that facilitates international trade in all aspects. Findings – To facilitate and promote international trade relations in short run, interested countries may accept a convention to remove all trade barriers among themselves all at once. Research limitations/implications – The proposed convention does not go against General Agreement on Tariff and Trade and WTO, but it is complementary to both. Practical implications – The proposed principles are actually shortcuts to what WTO may access in far futures. Social implications – Islamic Sufism teachings can lead us to solve current international problems. Originality/value – WTO has taken important steps to facilitate international trade. To reach the main goal of trade liberalization of WTO, a shortcut solution is proposed here.

The sibling crowd-in effect of time and cash assistance to elderly parents

2020 ◽  
Vol 47 (1) ◽  
pp. 51-63
Author(s):  
Luis J. Gonzalez ◽  
Carlos Lopes
Keyword(s):  
Unobserved Heterogeneity ◽  
Content Type ◽  
Elderly Parents ◽  
Cash Assistance ◽  
Public Transfers ◽  
Crowd Out ◽  
The Individual ◽  
Practical Implications ◽  
Retirement Study ◽  
Private Transfers

PurposeThe purpose of the current study is to analyze how the assistance that one's siblings provide to their parents impacts one's own contributions. Siblings' assistance is measured as the total combined number of hours and the total combined cash that one's siblings provide, excluding one's own level of contributions.Design/methodology/approachWe use first differences and instrumental variables approaches to address unobserved heterogeneity and endogeneity of assistance provided to one's parents.FindingsA 10 percent increase in siblings' time and cash assistance is associated with an increase in the individual levels of adult children's time contributions by about 6.72 percent and cash contributions by 7.43 percent.Practical implicationsCrowd-in is meaningful from a policy perspective as it suggests that upstream transfers are unlikely to crowd-out similar transfers from siblings. Private transfers are unlikely to decrease in response to public transfers.Social implicationsPolicy that incentivizes private transfers from one individual may lead to increased levels of transfers from their siblings. Policies such as tax incentives that encourage contributions from adult children are likely to have a magnified effect.Originality/valueOur approach is novel in that we utilize data on full sibling sets using the children of the Health and Retirement Study respondents. This allows the consideration of crowding effects that transfers from siblings have. Other authors perform tests to determine whether or not altruistic transfer motives are present. With altruistic motives, public transfers are expected to crowd-out private transfers. Our approach focuses on crowding behavior regardless of the underlying motives.

Representative bubbles and deleveraging

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Francesco Strati
Keyword(s):  
Simple Model ◽  
Theoretical Approach ◽  
Design Methodology ◽  
Sufficient Conditions ◽  
Sufficient Condition ◽  
Demand Side ◽  
Content Type ◽  
Real Effects ◽  
Crowd Out ◽  
Practical Implications

PurposeThe causes for the formation of a bubble in the collateral market when agents are provided with homogeneous expectations are explored. This bubbly dynamics will define a sufficient condition for deleveraging.Design/methodology/approachTheoretical approach with neutral deleveraging.FindingsFindings of the study are defined sufficient conditions for a behavioral rational bubble's formation in a market of collateral and the subsequent deleveraging. The crowd-in effect of the representative bubble is caused by errors in extrapolating information and thus by representativeness, while the crowd-out effect of deleveraging is set off by reverting to a rational heuristic.Research limitations/implicationsThe limit is that it is a homogeneous expectations approach, the implication is that cannot be rational speculation.Practical implicationsEven in a simple model of homogeneous expectations a bubble may arise with serious effect on the demand side: models that detect just rational mispricings cannot account for behavioral components that have financial and real effects.Originality/valueThe paper defines how deleveraging may occur even in case of homogeneous expectations. The latter should not be seen just as a limit but also as a signal of the importance of being aware of behavioral components.

Sufficient challenges and a weekend ahead – Generation Y describing motivation at work

2014 ◽  
Vol 27 (4) ◽  
pp. 569-582 ◽  
Author(s):  
Susanna Kultalahti ◽  
Riitta Liisa Viitala
Keyword(s):  
Generation Y ◽  
Data Gathering ◽  
Full Time ◽  
Content Type ◽  
Hrm Practices ◽  
Intrinsic Motivators ◽  
The Impact ◽  
Negative Factors ◽  
The Voice ◽  
Practical Implications

Purpose – The purpose of this paper is to examine some perceptions of Millennials concerning what makes work motivating, and discuss their implications for human resource management (HRM) practices. Design/methodology/approach – Empirical data were collected via Facebook using the method of empathy-based stories (MEBS). The theoretical framework is grounded in the literature on motivation. Findings – The full-time working Millennials wrote more about intrinsic motivators than extrinsic ones. Additionally, there were several dichotomies of positive and negative factors causing motivation/demotivation. Thus, the results contradict to some extent with the ones of Herzberg's. The stories revealed that the most important things having an effect on motivation were an interesting, varying and flexible job and good relationships with colleagues and supervisor. Practical implications – The results revealed some particular factors that should be considered when designing HRM practices to dovetail with the motivational drivers of the Millennials: flexibility, work-life balance, convenient social relationships, need for coaching-based leadership and the opportunity to develop. Social implications – Due to retirements and shrinking generations, the impact of Generation Y is increasing in the workforce. Thus, recognising its motivational factors is important. Originality/value – The originality of the study partly rests in its methodological innovativeness. Often adopted by sociologists, this study introduces the method of MEBS to the business field. Furthermore, Facebook is still seldom used in data gathering. While much of the extant research on Generation Y is quantitative in nature, the adoption of a qualitative approach allows for the voice of Generation Y to be heard.

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