IE University

About: IE University is a education organization based out in Segovia, Castilla y León, Spain. It is known for research contribution in the topics: Corporate governance & Supply chain. The organization has 527 authors who have published 1709 publications receiving 64682 citations.

The Employment Consequences of Private Equity Acquisitions: The Case of Institutional Buy Outs

Abstract: There is a growing controversy as to the impact of private equity acquisitions, especially in terms of their impact on employment and subsequent organizational performance. It has been suggested that closer owner supervision and the injection of a new management team revitalize the acquired organization and unlock dormant capabilities and value. However, both politicians and trade unionists suggest that private equity acquirers may significantly reallocate value away from employees to short term investors, typically through layoffs and reduced wages, which may undermine future organizational sustainability. This article investigates this in the context of a sample of institutional buy outs (IBOs) undertaken in the UK between 1997 and 2006. Specifically we examine the impact of IBOs on both employment and remuneration against two control groups of non-acquired firms. In designing our study we follow the empirical approach taken by Conyon et al (2001 and 2002) in investigating the employment consequences of regular takeovers. Our main finding is a significant loss in employment in firms subject to an IBO in the year immediately following the acquisition as well as lower wage rates, when compared to either of the two control groups. Furthermore, we find no evidence of a subsequent improvement either in productivity or profitability in the acquired businesses.

Distributional Implications of Government Guarantees in Mortgage Markets

Abstract: We analyze the removal of the credit-risk guarantees provided by the government sponsored enterprises (GSEs) in a model with agents heterogeneous in income and house price risk. We find that wealth inequality increases, driven by higher mortgage spreads and housing rents. Housing holdings become more concentrated. Foreclosures fall. The removal benefits high-income households, while hurting low- and mid-income households (renters and highly leveraged mortgagors with conforming loans). GSE reform requires compensating transfers, sufficiently high elasticity of rental supply, or linking GSE reform with the elimination of the mortgage interest deduction.

Who are the multichannel shoppers and how can retailers use them? Evidence from the French apparel industry

Abstract: This study aims to identify, within the context of the French fashion industry, the characteristics of multichannel shoppers, that is, consumers who use more than one channel in a single shopping trip. We especially investigate whether consumers' focus on quality versus price affects their multichannel shopping tendency and their flexibilities in their shopping lists (basket flexibility).,We surveyed a representative sample of 400 French shoppers regarding fashion apparel purchasing. We use a logistic regression framework to measure the probability of a shopper becoming a multichannel shopper based on the key constructs and a battery of control variables.,The analysis shows that, in fashion buying, shoppers focused on quality and those with high basket flexibility have a higher probability of becoming multichannel shoppers. The probability becomes even greater when a shopper is both quality oriented and has basket flexibility.,We focus on the fashion apparel market for a deeper understanding of multichannel usage of products with both experience and search features. Future research can investigate other industries for higher generalizability.,Our research provides insights into multichannel fashion companies whose managements aim to effectively manage high-value customers who tend to use more channels when shopping. Specifically, an omnichannel marketing strategy should focus on capturing the quality-oriented and highly basket-flexible segment of consumers.,Our study provides evidence that for products having high experiential as well as search features, quality-oriented and highly flexible shoppers engage more in multichannel shopping. Because these characteristics are related to the long-term value of customers, we provide the link between multichannel marketing and firm profitability in the context of the fashion industry.

Dynamic Purchase Decisions Under Regret: Price and Availability

Abstract: We model a dynamic purchase context in which a consumer is uncertain about the product's valuation. The consumer has two purchase opportunities for the product: forward purchase in Period 1 or spot purchase in Period 2. Two forms of regret are considered: buyer's regret over the money paid in excess of his valuation of the product when buying forward and hesitater's regret for the lost opportunity of an increased surplus when not buying forward. We illustrate how regrets affect the purchase decision: a consumer is more likely to buy forward when more averse to hesitater's regret but more likely to delay the decision when more averse to buyer's regret. We also consider alternative consumer types to characterize how regret affects their spot purchase decisions as well as what triggers the regret. We show that type inconsistency---that is, a consumer's incorrect anticipation of his future type---induces an inferior Period 1 purchase decision and thereby reduces the consumer's expected surplus.