DePaul University

About: DePaul University is a education organization based out in Chicago, Illinois, United States. It is known for research contribution in the topics: Population & Poison control. The organization has 5658 authors who have published 11562 publications receiving 295257 citations.

Initiative, Incentives and Soft Information: How Does Delegation Impact The Role of Bank Relationship Managers?

Abstract: This paper empirically examines how changes in the hierarchical structure of a large organization can affect incentives. The empirical analysis exploits a change in the hierarchical structure of the Corporate Division of a private foreign commercial bank in Argentina between 1999 and 2001. Using detailed hand collected data on credit approvals, as well as perceived effort measures for each relationship manager from quality surveys done to borrowing firms, I test whether delegation of authority and reduction of oversight improves or decreases the provision of effort by account managers. Results suggest that empowering managers increases the time relationship managers spend with their corporate clients, increases perceived effort and reduces the number of complaints the bank receives from its clients. Alternative explanations and several tests are constructed to examine the different channels through which effort measures could have increased other than the change in organizational structure. I then test whether the improvement is really because managers make better use of their decision making authority rather than they simply waste less time in filing reports to their superiors. I find that individuals who receive more authority use their soft information more compared to individuals to whom authority is only partially delegated. This suggests that delegation of authority increases managerial effort not only because management spends less time reporting to bosses, but also because they recognize that their effort will have greater impact on outcomes. Hence, transmission of, and reliance on, soft information are higher under decentralized than centralized structures. Finally, I test whether the change in structure was meaningful and productive from the bank's financial perspective. I find that cross-selling measures and bank's financial ratios increased after the organizational change.

A study of mobile internet user's service quality perceptions from a user's utilitarian and hedonic value tendency perspectives

Abstract: Although a few studies have focused on mobile value from the distinctive feature of a mobile technology perspective, limited attempts have been made from a mobile user's value tendency perspective. In this study, building upon prior research on productivity-oriented and pleasure-oriented nature of systems, we categorize mobile values as having utilitarian and hedonic use. Based on these two values, we conceptualize types of tendency of mobile users' application use namely utilitarian tendency and hedonic tendency. The goal of this study is to examine the relationships between mobile consumers' value tendency and their perceptions of mobile Internet service quality in terms of three different mobile quality dimensions (i.e., connection quality, design quality, and information quality). In addition, drawing upon the "digital divide" literature, the relationships between mobile users' personal dispositions (i.e., maturity and socio-economic status) and their mobile value tendency are also tested. The empirical results of the study, the interpretation of the results, research contributions, and limitations are discussed.

Changes in Institutional Ownership and Subsequent Earnings Announcement Abnormal Returns

Abstract: This study documents an association between change in institutional ownership during a calendar quarter and abnormal returns at the time of the subsequent announcement of quarterly earnings. The result is driven by the portfolio returns of the extreme deciles of changes in institutional ownership, and within the top (bottom) deciles, the third of the stocks with the most positive (negative) skewness of the distribution of changes in institutional ownership. We also show that our results obtain only for institutional investor types with short-term focus. These results suggest informed trading by institutions based on information about forthcoming earnings.

The Effects of Imprecise Probabilities and Outcomes in Evaluating Investment Options

Abstract: Vagueness attitudes have been used to explain anomalies and irregularities in investment behavior. It is generally assumed (Ellsberg 1961) that decision makers (DMs) dislike vagueness, but this assumption has been challenged by empirical results documenting systematic alternative attitudes to vagueness as a function of its source, the domain of the decisions, and the response mode used. We investigate these three factors in a within-subjects design that was embedded in an investment context. DMs evaluated investment options that varied in terms of their sources of vagueness (probabilities and/or outcomes), in both domains (gains or losses), and employed two response modes (pricing or choice). We confirm that individuals' vagueness attitudes are malleable, contingent on the dimension salience and the reference domain. In particular, we observed three distinct patterns of "reversals of attitudes" towards vagueness. Our results indicate that the ability of vagueness attitudes to predict investment behavior is limited, as decisions can be systematically influenced by task context and/or perceived gain or loss positions. Economic models may be improved by incorporating more flexible assumptions about individuals' attitudes toward vagueness.