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1 – 10 of over 1000Karin Braunsberger, Laurie A. Lucas and Dave Roach
In the USA, the Federal Reserve Board (FRB) has adopted a final rule amending the Truth in Lending Act's Regulation Z, effective October 1, 2001. The present study aims to use the…
Abstract
Purpose
In the USA, the Federal Reserve Board (FRB) has adopted a final rule amending the Truth in Lending Act's Regulation Z, effective October 1, 2001. The present study aims to use the elaboration likelihood model to explore how consumers might respond to the revised credit card disclosure requirements, focusing specifically on college students.
Design/methodology/approach
Each subject was randomly assigned to one of two financial scenarios and asked to choose, among competing offers, the credit card that presented the “best” match to the scenario. Subsequently, all subjects completed measures designed to test hypothesized relationships within the framework of the elaboration likelihood model.
Findings
College students possess a fairly low level of knowledge of credit cards and thus are not very well equipped to make educated choices concerning such cards.
Research limitations/implications
The use of a rural student sample is a limitation and future research should investigate different populations, including those in urban and international markets.
Practical implications
Since the variable APR information appears to distract consumers from taking into account other important cost information, credit card issuers should develop solicitations that aid consumers in making knowledgeable choices.
Originality/value
The present research is the first to investigate the impact of the FRB's recently adopted final rule amending the Truth in Lending Act's Regulation Z. The findings should thus be of interest to regulators, credit card issuers, and consumer advocates.
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The evidence suggests deductions for non-performance and competitive solicitation methods are key determinants of contractor performance. A penalty provision is strongly…
Abstract
The evidence suggests deductions for non-performance and competitive solicitation methods are key determinants of contractor performance. A penalty provision is strongly associated with an increase in unit cost, while a competitive solicitation method reduces unit cost. The evidence is inconclusive for fixed price contract and contract length. The findings support the idea that contracting techniques impact contractor performance. The potential for cost savings may not be fully realized unless techniques that focus on competitive contracting are employed. Future research that addresses contract design factors for other services in other settings will provide information to help policy makers choose among the numerous contract design options.
Karin Braunsberger, Laurie A. Lucas and Dave Roach
The Federal Reserve Board has recently adopted a final rule amending the Truth in Lending Act's Regulation Z, effective October 1, 2001. The first study investigates how…
Abstract
The Federal Reserve Board has recently adopted a final rule amending the Truth in Lending Act's Regulation Z, effective October 1, 2001. The first study investigates how vulnerable consumers (i.e. college students) might respond to the revised credit card disclosure requirements and investigates credit card knowledge of college students. The second and third studies examine external validity issues, that is, whether urban college students are more knowledgeable about credit cards than rural students, and whether adult populations are more knowledgeable than student populations. These latter studies further investigate the relationships among objective knowledge, subjective knowledge and product usage. The results show that consumers in general are not very knowledgeable about credit cards. In order to avoid government regulation of the industry, it is recommended that credit card issuers become involved in educating consumers.
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Stuart Gelfond, Joshua Coleman and Kaihli Ross
To explain the SEC's new Compliance and Disclosure Interpretations (“CDIs”) relating to the recently adopted amendments to Rule 144A and Rule 506, which permitted general…
Abstract
Purpose
To explain the SEC's new Compliance and Disclosure Interpretations (“CDIs”) relating to the recently adopted amendments to Rule 144A and Rule 506, which permitted general solicitation and general advertising (“general solicitation”) in all Rule 144A offerings and select Regulation D offerings under Rule 506.
Design/methodology/approach
The article summarizes amended rules and recently issued CDIs, while also explaining some of their implications.
Findings
The new CDIs provide a number of helpful clarifications and confirmations on aspects of the amended rules relating to general solicitation, transitioning between different types of Rule 506 offerings and investor verification under Rule 506(c).
Originality/value
Practical summary of recent SEC guidance with explanation from seasoned corporate securities attorneys.
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Qin Zhang and P.B. Seetharaman
The purpose of this paper is to propose a method to help firms assess lifetime profitability of customers whose buying behaviors are characterized by purchasing cycles, which are…
Abstract
Purpose
The purpose of this paper is to propose a method to help firms assess lifetime profitability of customers whose buying behaviors are characterized by purchasing cycles, which are determined by both intrinsic purchasing cycles and cumulative effects of firms’ marketing solicitations.
Design/methodology/approach
This paper first proposes a probability model to predict customers’ responses to firms’ marketing solicitations in which a customer’s inter-purchase times are assumed to follow a Poisson distribution, whose parameters vary across customers and follow a gamma distribution. The paper then proposes a customer profitability scoring model that uses customers’ responses as an input to assess their lifetime profitability at a given point of time.
Findings
The paper illustrates the proposed method using individual-level purchasing data of 529 customers from a catalog firm. The paper shows that the proposed model outperforms the benchmark model in terms of both explaining and predicting customers’ purchases. The paper also demonstrates significant profit consequences to the firm if incorrect methods are used instead of the proposed method.
Practical implications
The proposed method can help firms select or eliminate customers based on their lifetime profitability so that firms can focus their marketing efforts in a more targeted manner to increase total profits.
Originality/value
The proposed Gamma-Poisson probability model and the profitability scoring method are easy to implement due to the attractive conjugacy property. It is valuable for firms’ customer relationship management applications from the standpoint of making customer selection and inventory management decisions.
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David Engvall, David Martin, Warren Caywood and James Wawrzyniak
The purpose of this paper is to explain changes to the SEC rules governing private offerings of securities, permitting general solicitation and general advertising in certain…
Abstract
Purpose
The purpose of this paper is to explain changes to the SEC rules governing private offerings of securities, permitting general solicitation and general advertising in certain private placements conducted under Rule 506 of Regulation D under the US Securities Act of 1933, and amending Rule 506 to disqualify certain “bad actors” from private placements conducted under the rule.
Design/methodology/approach
The paper explains the new Rule 506(c), which removes the prohibition on general solicitation and general advertising provided that all purchasers are accredited investors and the issuer has taken all reasonable steps to verify that they are accredited investors. The paper explains the final rules relating to bad-actor disqualifications, and also explains several amendments to Regulation D that the SEC has proposed to give the Commission additional insight into the market and help prevent potential fraud.
Findings
In adopting these rule amendments simultaneously, the SEC balanced the often counterpoised considerations of promoting capital formation and protecting investors.
Practical implications
Issuers engaging in offerings under the new Rule 506(c) must develop adequate processes to verify the accredited investor status of purchasers and to identify bad actors as defined in the rule.
Originality/value
The paper provides practical guidance from experienced financial services lawyers.
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Timothy Burke and Jason Pinney
To explain recent guidance released by the Financial Industry Regulatory Authority (FINRA) regarding research analyst conflicts of interest that arise during the underwriter…
Abstract
Purpose
To explain recent guidance released by the Financial Industry Regulatory Authority (FINRA) regarding research analyst conflicts of interest that arise during the underwriter selection process.
Design/methodology/approach
The article discusses the risks associated with different communications between research analysts and issuers during the three phases of the underwriter selection process: the pre-IPO period; the solicitation period; and the post-mandate period.
Findings
While many questions remain, the FINRA guidance provides valuable insight to firms regarding the types of communications between research analysts and issuers that are permitted during different periods in the solicitation process. The risk levels associated with different types of communications during those time periods range from low to high to “unmanageable”. The article provides practical guidance on what research analysts can say and do during the different periods.
Practical implications
Broker-dealers should evaluate their policies and procedures to ensure compliance with the new FINRA guidelines.
Originality value
Practical guidance from experienced securities lawyers who are on the front lines in dealing with these issues.
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Flavia V. Barbosa, José C.F. Teixeira, Senhorinha F.C.F. Teixeira, Rui A.M.M. Lima, Delfim F. Soares and Diana M.D. Pinho
The aim of this paper is to characterize the rheological properties of the flux media exposed to different levels of solicitation and to determine its influence on the rheology of…
Abstract
Purpose
The aim of this paper is to characterize the rheological properties of the flux media exposed to different levels of solicitation and to determine its influence on the rheology of the solder paste. The data obtained experimentally are fundamental for the development of numerical models that allow the simulation of the printing process of printed circuit boards (PCB).
Design/methodology/approach
Rheological tests were performed using the Malvern rheometer Bohlin CVO. These experiments consist of the analysis of the viscosity, yield stress, thixotropy, elastic and viscous properties through oscillatory tests and the capacity to recover using a creep-recovery experiment. The results obtained from this rheological analysis are compared with the rheological properties of the solder paste F620.
Findings
The results have shown that the flux is viscoelastic in nature and shear thinning. The viscosity does not decrease with increasing solicitations, except in the case where the flow is withdrawn directly from the bottle. Even if the solder paste shows a thixotropic behavior, this is not the case of the flux, meaning that this property is given by the metal particles. Furthermore, the oscillatory tests proved that the flux presents a dominant solid-like behavior, higher than the solder paste, meaning that the cohesive/tacky behavior of the solder paste is given by the flux.
Research limitations/implications
To complement this work, printing tests are required.
Originality/value
This work demonstrates the importance of the rheological characterization of the flux in order to understand its influence in the solder paste performance during the stencil printing process.
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Katelyn A. Golladay and Jamie A. Snyder
This study expands the empirical understanding of financial fraud victims and the consequences that emerge as a result of financial fraud victimization. In addition, this study…
Abstract
Purpose
This study expands the empirical understanding of financial fraud victims and the consequences that emerge as a result of financial fraud victimization. In addition, this study aims to assess the impact of the unique role victims play in financial fraud and the impact self-identifying as a victim has on the negative consequences they experience.
Design/methodology/approach
Data from the Supplemental Fraud Survey to the National Crime Victimization Survey are used to assess the negative consequences of financial fraud victimization.
Findings
Results suggest that victims of financial fraud experience increased distress and financial complications following their victimization experience. In addition, self-reported victim status is found to significantly increase a respondent’s likelihood of reporting emotional distress and financial complications. Implications for research, theory and policy are discussed.
Originality/value
While empirical studies on the consequences of identity theft victimization have been increasing in recent years, financial fraud victimization remains understudied. Given the victim involvement in financial fraud, the consideration of financial fraud independent of identity theft fraud is vital.
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A pooled income fund (PIF) is one of the methods created under the 1969 Tax Reform Act whereby a taxpayer may make a tax‐deductible remainder gift to a charitable organization…
Abstract
A pooled income fund (PIF) is one of the methods created under the 1969 Tax Reform Act whereby a taxpayer may make a tax‐deductible remainder gift to a charitable organization. The fund, established by a charitable organization to receive irrevocable gifts from at least two donors, pays current income to the individual beneficiaries for life, but at the termination of each income interest, the allocable principal must revert permanently to the charitable organization. In recent years, a number of PIFs have been offered to the public by charitable organizations through broker‐dealers or related entities. There are numerous securities‐law issues implicated by the sales of these PIFs, including: (i) whether broker‐dealers may solicit donations to such funds and receive compensation for their solicitations; (ii) the effect of the broker‐dealers’ solicitation and receipt of compensation have on securities registration for the PIF or units offered therein under the Securities Act of 1933, the Securities Exchange Act of 1934, or the Investment Company Act of 1940; (iii) whether staff and persons affiliated with the sponsoring charity, including parties assisting them in the marketing of such pooled income funds, also should be permitted to solicit donations; (iv) whether such charities or persons, or parties assisting them in the marketing of such pooled income funds, then should be required to register as broker‐dealers; (v) what securities licenses may be required of the aforementioned parties; and (vi) whether there are ways to design the manner in which third parties other than broker dealers are compensated to resolve any potential issues arising from answers to the previous questions. This article first sets forth the applicable law involved in the analysis and then attempts to answer each of the issues presented above.
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