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 & Context (language use). The organization has 527 authors who have published 1709 publications receiving 64682 citations.

Mortgage Supply and Housing Rents

Abstract: We show that, especially since 2011, systemically important U.S. banks have increased their propensity to deny mortgage applications, particularly among FHA loan applicants and black and Hispanic borrowers. Tighter mortgage standards have increased demand for rental housing and led to higher rents, depressed homeownership rates, greater construction of multifamily housing, and lower rental vacancies. These effects are stronger in MSAs with barriers to using online lending platforms, such as age and internet accessibility, and where regulations inhibit competition among alternative lenders.

Resourcing Under Tensions: How frontline employees create resources to balance paradoxical tensions:

Abstract: Managing resources and tensions at the front line is crucial for organizational success. To advance our understanding of how frontline employees turn assets into useful resources under tensions, we...

Exploring the impact of electronic business readiness on leadership capabilities in information technology governance

Abstract: This paper examines the task, relationship, and change orientations of e-business leadership, based on an exploratory study of 31 successfully operating e-business sites, with hypotheses developed from situational leadership theory. The results indicate that, despite different levels of e-business readiness, effective leadership is characterized by high task, high relationship, and high change-orientations. Critical e-business leadership capabilities are development and management of shared e-business vision and e-business strategy, collaborative business-IT relationships, and customer relationships. The implications for future research and practice are discussed.

When Feedback Interventions Backfire: Why Higher Performance Feedback May Result in Lower Self-Perceived Competence and Satisfaction with Performance

Abstract: In relative performance evaluation systems, appraisers may choose to adopt stricter or laxer evaluation criteria. When laxer (vs. stricter) criteria are used, higher absolute performance evaluations become easier (vs. harder) to achieve. Thus, each appraisee's absolute performance feedback and the mean of the distribution of absolute performance feedback are shifted upward (vs. downward). Yet, relative performance remains constant. When evaluation outcomes depend solely on relative performance, can the adoption of laxer (vs. stricter) criteria-leading to higher absolute performance feedback but no change in relative performance-influence appraisees' satisfaction with performance? Despite the ubiquity of such systems in organizations, research has not addressed this question. This article points to an important gap between practitioners' beliefs and research findings. We show that while most appraisers believe that higher absolute performance feedback will automatically result in more satisfaction with performance, the opposite may also happen. Specifically, we find that appraisees with a stronger (vs. weaker) chronic or contextual need to engage in social comparison are more satisfied with lower (vs. higher) absolute performance feedback. Overall, we demonstrate why and how feedback interventions in relative performance evaluation systems may backfire, and suggest a set of practical guidelines for maximizing appraisees' satisfaction with performance in such systems.

When the Market Misleads: Stock Prices, Firm Behavior, and Industry Evolution

Abstract: This paper augments learning and institutional theories of firm behavior with an explicit focus on the idiosyncratic characteristics of learning from financial markets. Various streams of literature implicitly assume that financial markets influence firm strategies, yet the specifics of these interactions are not well specified. Motivated by a case study of the retail brokerage industry, this study proposes three particular characteristics of learning from financial markets. First, there is vicarious learning from outcomes (e.g., stock valuations), yet this has characteristics that are more similar to institutional forms of mimetic isomorphism. Second, the forward-looking and complex nature of financial valuations incites a paradoxically simplified type of crude heuristic learning. Third, there is a mutual and simultaneous learning process in that firms learn from financial markets, which in turn are themselves in a process of social construction. This combination of special characteristics suggests a number of learning pathologies that center around an increasing likelihood (compared with other types of learning and adaptation) of falling prey to misleading signals. A computer simulation, based on a model in which Cournot duopolists play a multistage game involving investment and cost reduction, explores the implications of these characteristics and pathologies in a systematic way.