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With the rise of social media and the peer-to-peer economy, sellers can easily tell potential buyers about themselves and their process of producing products and services. This research investigates the influence of a central aspect of the production process that sellers can communicate—their production enjoyment. Buyers are willing to pay a higher price, are more likely to click on ads, and are more likely to choose a product or service when the seller signals that they enjoy producing it. In contrast, sellers are willing to accept lower prices, and actually charge less, for products and services they enjoy producing. Both buyers and sellers make the inference that production enjoyment leads to higher quality products/services, but only buyers rely on this inference when forming their pricing judgments relative to sellers. Nine studies illustrate these effects across a wide variety of products and services, participant samples, and operationalizations of production enjoyment. They show that signals of production enjoyment can influence buyers more than other established signals (e.g., effort) and demonstrate contexts where these effects are more and less likely to occur. These findings offer practical recommendations for both buyers and sellers as well as a variety of theoretical contributions. [ABSTRACT FROM AUTHOR]

We analyze how ETFs compete. Drawing on a new model and empirical analysis, we show that ETF secondary market liquidity plays a key role in determining fees. More liquid ETFs for a given index charge higher fees and attract short-horizon investors who are more sensitive to liquidity than to fees. Higher turnover from these investors sustains the ETF's high liquidity, allowing the ETF to extract a rent through its fee, and creating a first-mover advantage. Liquidity segmentation through clientele effects generates welfare losses. Our findings resolve the apparent paradox that higher-fee ETFs not only survive but also flourish in equilibrium. [ABSTRACT FROM AUTHOR]

Post-earnings-announcement drift (PEAD) is one of the most solidly documented asset pricing anomalies. We use the controlled conditions of the experimental lab to investigate whether earnings autocorrelation is the driving cause of this anomaly. We observe PEAD in settings with uncorrelated and correlated earnings surprises, confirming that earnings autocorrelation is not a necessary condition for PEAD. Instead, it acts as an accelerator: PEAD is stronger when earnings surprises are correlated. We further show that market prices underadjust to fundamental value changes, and that trading strategies can profitably exploit the PEAD. [ABSTRACT FROM AUTHOR]

The fast-growing middle class in emerging markets is leading luxury brands to adopt an affordable luxury (aka "masstige") approach to reach the mass market. However, academic research in this promising area is scarce. Focusing on China, the world's largest emerging market, this research shows a novel pattern of masstige brand consumption: Instead of always preferring foreign masstige brands (e.g., Coach) as implied in previous international marketing literature, consumers in emerging markets prefer domestic masstige brands (e.g., Goldlion) when their personally oriented motives are made salient. In contrast, consumers prefer foreign masstige brands when their socially oriented motives are made salient. This stems from domestic masstige brands better manifesting self-focused intangible attributes (i.e., the actual value to please oneself), whereas foreign masstige brands are superior in other-focused intangible attributes (i.e., the symbolic value to impress others). Three studies using a multimethod approach provide converging results that support this phenomenon. The findings bring significant contributions to the literature and offer actionable implications for managers, including positioning and price promotion strategies for masstige brands in emerging markets. [ABSTRACT FROM AUTHOR]

Over the last decade there has been significant interest in international expansion of emerging market firms (EMFs) due to their distinctive patterns compared with developed market firms (DMFs). In this article, the authors develop an analytical model to generate prescriptive insights for pricing strategies when EMFs enter new foreign markets. Grounded in the international marketing and organizational learning literatures, the model accounts for local and multinational competition, the influence of country-of-origin effects, and the role of organizational learning in foreign markets. The results suggest that when an EMF enters a host market with a local competitor, it could generate higher profits even when charging a lower price than the local competitor. Additionally, the authors find that DMFs enjoy greater profitability than EMFs in foreign markets as a result of positive country-of-origin effects. Finally, the authors propose and validate the use of organizational learning as a process EMFs can use to surmount the negative impact of country-of-origin effects and achieve greater profitability than DMFs. [ABSTRACT FROM AUTHOR]

Building on shifting standards theory from social psychology, the authors suggest global versus local branding as an important categorization that affects consumers' reactions to product-harm crises in emerging markets. Specifically, the distinct associations attached to global and local brands create shifting standards and lead to differential consumer expectations and evaluations. In four main and two supplementary experiments, the authors demonstrate that consumers from emerging markets react more negatively toward a product-harm crisis by global (vs. local) brands. Higher initial expectations for global brands are the underlying cause of this more pronounced consumer response to failures. The authors demonstrate which specific expectations are driven by the shifting standards around global and local brands and identify product category as a relevant boundary condition. Finally, consumers with high ethnocentrism appreciate it directionally more when a local brand provides compensation after a product-harm crisis than when a global brand provides compensation. The results have important implications for brand management and crisis management strategies. [ABSTRACT FROM AUTHOR]

This inductive study of eight international development interventions analyzes mechanisms that enable integration of evidence in practice, a perennial challenge of learning and collaboration across occupational and organizational boundaries. We demonstrate how structural and programmatic scaffolding practices enabled actors from an array of organizations and communities of practice to collaborate and learn despite the uncertainty and complexity inherent in the international development context. These modular scaffolding practices offered temporary stabilization and support that fostered the counter-normative behaviors and mindsets required for continuous learning and adaptive coordination. Through 226 in-depth interviews with international development experts, including practitioners in eight matched interventions in India, Mexico, South Africa, and Ghana, we identified and analyzed mechanisms that explain the varying effectiveness with which evidence was integrated in each case. Our findings have implications for interorganizational innovation and collaboration under conditions of complexity and uncertainty and for dynamic interactions among individuals, their organizations, and their communities of practice when they are attempting to bring about systemic change. [ABSTRACT FROM AUTHOR]

Despite continued research on workers' quit behavior, questions remain on how race influences voluntary departure. To make progress on this topic, in this study I treat race as a structural position with respect to resources in order to develop a theoretical frame on why members of racial groups leave jobs. I argue that Black workers are more apt than White workers to voluntarily depart for reasons related to a lack of resources, such as a lack of health or transportation, whereas White workers are more likely than Black workers to depart for reasons that require resources, such as to start a new business or to take a new job. Using a nationally representative cohort sample spanning a period of two decades, I find support for my theory. The results indicate that Black workers are more likely than White workers to voluntarily depart their jobs due to resource constraints, and White workers are more likely than Black workers to voluntarily depart their jobs for reasons that require resources. This study suggests ways to reconceptualize the constraints and opportunities underlying voluntary departure and why such departure varies across racial groups. [ABSTRACT FROM AUTHOR]

The shift to electric mobility is driving disruptive transformations in the automotive sector worldwide. It poses significant but different opportunities and challenges to incumbents and latecomers at both the firm and country levels. China's green industrial policy has facilitated its rapid catching up and even leapfrogging in some domains of electromobility. This article asks whether the exploitation of this window of opportunity can be replicated in other latecomer countries. Accordingly, it provides a comparative analysis of the automotive green window of opportunity in Brazil, India, and South Africa, three emerging economies with long established but structurally different automotive industries. To do so, it examines domestic preconditions, policy and enterprise responses, and preliminary industrial development outcomes. Although all the three countries face constraints in replicating China's relative success, the article shows how green opportunities and threats are unequally divided between the three countries. [ABSTRACT FROM AUTHOR]

Culture and gender differences in values associated with luxury consumption are investigated. Two Western individualistic-oriented countries with mature luxury markets (France and the United States) and two Eastern collectivistic-oriented countries with developing luxury markets (the United Arab Emirates and China) are compared using a previously developed model of luxury values. Main results indicate that refinement, heritage, and, to a lesser extent, exclusivity receive greater emphasis in Western rather than Eastern countries. Chinese and U.S. consumers place particular emphasis on elitism. Additionally, gender shapes the importance placed on luxury values: men emphasize elitism (and exclusivity in Western countries only), whereas women emphasize refinement. Furthermore, adherence to own-gender beliefs (i.e., traits attributed to one's gender) fully mediates gender influence within all four countries. Theoretical implications are discussed based on major frameworks of national culture and the social structural theory. Managerial implications in terms of cultural and gendered adaptation of marketing strategies are considered. [ABSTRACT FROM AUTHOR]

Cobranding initiatives between a local and a global brand have become a prominent practice. This research contributes to the cobranding and global branding literatures by investigating the effects of positioning strategy of the cobranded product (global consumer culture positioning vs. local consumer culture positioning) on consumer evaluations in emerging markets. In five experiments, the authors show that using global consumer culture positioning for the cobranded product leads to heightened word-of-mouth intentions and more favorable product valuations. This effect holds for both local and global product categories. Building on signaling theory, the authors show that brand credibility mediates the effect of positioning strategy on word-of-mouth intentions. Further, when the local (vs. global) brand is the announcement source, using a global rather than a local consumer culture positioning leads to enhanced word-of-mouth intentions. Yet, for consumers with stronger ethnocentrism, when the global brand makes the announcement of a cobranded product positioned on local consumer culture, word-of-mouth intentions are higher. Altogether, the findings have nuanced implications for local branding, global branding, and young consumers in emerging markets. [ABSTRACT FROM AUTHOR]

When expanding abroad, small- and medium-sized enterprises (SMEs) experience various constraints, especially the liabilities of small size and foreignness. In this study, the authors examine postures, capabilities, and strategies related to international brand marketing that help SMEs overcome such challenges, establish a brand presence, and attain superior performance in foreign markets. Framing the investigation in the internationalization and capabilities perspectives, the authors employ multimethod approaches in a two-phase study among internationalizing SMEs based in Taiwan. In the first phase, they undertake an extensive literature review and then conduct case studies to formulate a conceptual model. In the second phase, the authors validate the model and associated hypotheses using survey data from a large sample of SMEs that target their products to markets worldwide. Results point to critical roles for these key constructs—international entrepreneurial orientation, international social media capability, and international market knowledge capability—as key antecedents to international branding capability and international brand strategy, in SMEs' international performance. The authors discuss the theoretical and managerial implications of these findings, highlighting the role of the critical constructs identified previously in driving superior international performance in resource-constrained SMEs. [ABSTRACT FROM AUTHOR]

Firms are often encouraged to collaborate to draw on local partners' expertise and insider status during internationalization. Appropriateness of alliances during international expansion depends on the type of exploratory search a firm pursues. During internationalization, firms engage with novelty in two distinct, yet often conflated, domains: institutional and product. Firms' novelty-seeking in these two domains engages homegrown knowledge structures in contrasting capacities, which alters the conduciveness of local partnerships as a mechanism of internationalization. While reliance on local partnerships enhances the performance outcomes of institutional exploration, performance-enhancing product exploration requires internalized governance arrangements. Based on the export operations of firms from three emerging economies, the empirical results support the theorized relationships. [ABSTRACT FROM AUTHOR]

Growing global environmental and social issues have imposed increased pressure on firms to address sustainability challenges in international markets, with a particular focus on improving their export performance. This is of significant importance for emerging market firms aiming to expand their presence in international markets, as they are compelled to bolster their environmental and social sustainability capacity to enhance their export intensity. This study delves into the relationship between corporate sustainability and export intensity through a longitudinal examination of 141 firms listed on Borsa Istanbul from 2014 to 2021. The results suggest that corporate sustainability positively influences export intensity, and this influence is further positively moderated by research and development (R&D) intensity. Additionally, post hoc analysis employing supplementary data pertaining to the environmental, social, and governance dimensions of corporate sustainability reveals that environmental performance plays a positive role in shaping export intensity, with R&D intensity positively moderating this relationship. In summary, the findings underscore that exporting firms that effectively integrate impactful R&D intensity into their international business operations are likely to harness their sustainability strategies, particularly those related to the natural environment, to achieve higher export intensity. [ABSTRACT FROM AUTHOR]

We study how patenting enhances customer capital and creates financial value in a product market characterized by information asymmetry between firm insiders and customers. We find that firms with more and higher quality patents develop greater customer capital, as measured by more positive customer perceptions of product novelty and quality. To establish causality, we exploit the exogenous variation in the random assignment of patent examiners to review applications and use the average examiner leniency as an instrument for patent grants. Our mediation analysis documents a positive impact of patenting on firm performance and financial market valuation through enhanced customer capital. [ABSTRACT FROM AUTHOR]

Population growth in urban cities has created transport problems such as traffic congestion, pollution, accidents, and infrastructure failures. These problems often lead to disruption of mobility, especially in emerging economies. The goal of any city is to have a resilient transport system that is free from frequent and severe disruptions. Resilience can be incorporated into smart mobility systems to create a robust, integrated and intelligent transport system. Therefore, this study sought to determine resilience factors required for a resilient smart mobility system in emerging economies. The study used interpretive structural modelling (ISM) to establish the causal interrelationships among the factors drawing from data from experts in smart cities, city transport and academia. It was found that the most critical factor to drive resilience is foresight – the ability to anticipate disruptions. Three other resilience factor categories identified were dynamism, certainty and optimisation, which all point to the importance of building dynamic capabilities. The key implication for practice highlights the role that human and artificial intelligence can play in anticipating natural, social and infrastructure disruptions. ISM offered a mechanism to determine the critical causal resilience factors to be prioritised amongst the competing demands on the limited resources of emerging economies. Apart from foresight, which was found to be a driving factor, the other resilience factors are equally strong linkage factors (influence each other), thus further revealing the complexities that decision-makers in urban cities of emerging economies constantly face. A research agenda for resilience in smart mobility in emerging economies was developed. [ABSTRACT FROM AUTHOR]

As sport league brands have increasingly extended their marketing activities into foreign countries, international brand positioning has become a relevant research topic. In this research, we introduce and examine the concept of bicultural brand positioning, an approach that combines a sport league's connection to its home country with target-country associations. We integrate bicultural identity theory with the literature on brand benefits to propose two types of bicultural brand positioning: functional versus symbolic. Three experiments, using the National Football League and German satellite fans as the empirical context, provide evidence that bicultural brand positioning incorporating functional (vs. symbolic) benefits for the satellite fans increases bicultural brand image integration, defined as the perceived compatibility of combining the two country cultures, and has positive indirect effects on intentions to use the brand and positive word of mouth. These effects are driven by increased perceptions of cultural authenticity of the brand and brand convenience. [ABSTRACT FROM AUTHOR]

We show that larger trades incur lower trading costs in government bond markets ("size discount"), but costs increase in trade size after controlling for client identity ("size penalty"). The size discount is driven by the cross-client variation of larger traders obtaining better prices, consistent with theories of trading with imperfect competition. The size penalty, driven by the within-client variation, is larger for corporate bonds, during major macroeconomic surprises and during COVID-19. These differences are larger among more sophisticated clients, consistent with information-based theories. [ABSTRACT FROM AUTHOR]

Using three exogenous shocks to ex ante litigation risk, including federal judge ideology and two influential judicial precedents, we find that lower shareholder litigation risk reduces a firm's propensity to delist from the U.S. stock markets. The effect is at least partially driven by indirect costs of litigation and that being a private firm can significantly reduce the threat of litigation. Overall, the results suggest that mitigating excessive litigation costs for public firms is crucial to ensure the continued vibrancy of the U.S. stock market. [ABSTRACT FROM AUTHOR]

Contrary to leading asset pricing theories, recent empirical evidence indicates that financial markets compensate only short-term equity variance risk. An equilibrium model with generalized disappointment aversion risk preferences and rare events reconciles salient features of the variance term structure. In addition, a calibration explains the variance and skew risk premiums in equity returns and the implied volatility skew of index options while capturing standard moments of fundamentals, equity returns, and the risk-free rate. The key intuition for the results stems from substantial countercyclical risk aversion induced by endogenous variation in the probability of disappointing events in consumption growth. [ABSTRACT FROM AUTHOR]

Marketing products/services internationally entails a bold decision that has high-cost implications and significant performance consequences: Should the firm standardize or adapt its marketing strategy across borders? The dilemma is a seminal issue, and perhaps the most enduring in international marketing scholarship. However, despite the voluminous work on the topic, an ontological assumption induces inconclusive conceptualizations and impedes theoretical advancement. The author contends that a self-contained, atomistic representation of the standardization/adaptation decision is such an impediment. This work problematizes a portrayal of the decision as if it is taken following a detached, own judgment of broad environmental contingencies. In turn, the study builds on fit literature and promotes an alternative perspective that acknowledges relational imperatives for requisite theorizing. Hence, standardization/adaptation is framed as a coconstituted process toward relational fit, with international marketing strategies being contingent on the role of significant "others." [ABSTRACT FROM AUTHOR]

The pollution haven hypothesis is widely used to explain the predatory relocation of foreign investors to emerging markets. However, the long-term effect of the pollution haven hypothesis remains a mystery, given the natural evolution of environmental regulations. This study proposes that the likelihood of foreign divestment in the emerging market increases when the regional environmental regulatory pressure becomes more stringent. Empirical support is obtained through a Cox proportional hazard model of 402 international joint ventures established in China in 2000, whose foreign divestment status is traced until 2017. The findings support the karmic debt of the pollution haven hypothesis; that is, foreign investors' focus on avoiding environmental regulatory costs by relocating to emerging markets in the short run will backfire in the long run unless they bring something of value to the host market. [ABSTRACT FROM AUTHOR]

Prior research shows that using mimetic isomorphism to select price/quality product strategies results in superior performance in the United States, the European Union, and Japan for both developed economy and emerging market manufacturers. However, do these results generalize in the case of emerging market service providers? Due to the nature of services, customers cannot gauge service quality prior to consumption, and they must rely on other cues; commonly, consumers rely on the brand name as a proxy. We theorize that for emerging market service providers, choosing a strategy of "distinctiveness" (pursuing a nondominant price/quality strategy) offers a way to differentiate their offering from the mimetic choice, resulting in superior performance. Implications for theory and practice are discussed. [ABSTRACT FROM AUTHOR]

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Disability is a basic human condition that affects a significant proportion of the world's population, yet many disability- and accessibility-relevant issues remain pressing and insufficiently addressed. With three experiments, the current research investigates potential reasons for why marketplace disability accessibility has not been universally accepted. Potential barriers to greater accessibility in marketplaces may arise because such efforts appear at odds with other salient priorities, at micro (i.e. consumer) and macro (i.e. firm, policy, or societal) levels. In the proposed framework and resulting experiments, micro-level trade-offs prompt perceptions of personal cost and macro-level trade-offs prompt perceptions of firm morality. In turn, these perceptions mediate firm evaluations, showing that consumers at baseline respond negatively to accessibility. Critically, however, several practical interventions emerge from these processes. Marketers can mitigate consumers' negative responses to accessibility by employing simple framing choices such as emphasizing who benefits or noting what the purpose of the offering is. By demonstrating one way to better understand perceptions of the full spectrum of the consumer population, this research provides pathways for consumer researchers to further delve into disability-related research in the future. [ABSTRACT FROM AUTHOR]

Race has been a market force in society for centuries. Still, the question of what constitutes focused and sustainable consumer research engagement with race remains opaque. We propose a guide for scholars and scholarship that extends the current canon of race in consumer research toward understanding race, racism, and related racial dynamics as foundational to global markets and central to consumer research efforts. We discuss the nature, relevance, and meaning of race for consumer research and offer a thematic framework that critically categorizes and synthesizes extant consumer research on race along the following dimensions: (1) racial structuring of consumption and consumer markets, (2) consumer navigation of racialized markets, and (3) consumer resistance and advocacy movements. We build on our discussion to guide future research that foregrounds racial dynamics in consumer research and offers impactful theoretical and practical contributions. [ABSTRACT FROM AUTHOR]

We measure the impact of two main signals of tertiary-level human capital accumulation, college quality and certification, on hiring in India. Using a correspondence experiment, we send 16,944 resumes to 1412 job postings for recent engineering graduates at small and medium firms. In precisely estimated results, we find that these employers do not respond to signals of tertiary education quality. Specifically, there is no impact on callbacks of having graduated from a mid-tier college ranked in the top 300 relative to an unranked college outside of the top 1000, despite significant government investment in college rankings. There is also no impact of scoring in the highest as opposed to the lowest quartile of a post-tertiary certification test that has been taken by millions of graduating students. There is evidence that women modestly benefit in the first stage of hiring in this market, with this effect concentrated in some regions.

This article analyzes the optimal allocation of losses via a Central Clearing Counterparty (CCP) in the presence of counterparty risk. A CCP can hedge this risk by mutualizing losses among its members. This protection, however, weakens members' incentives to manage counterparty risk. Delegating members' risk monitoring to the CCP alleviates this tension in large markets. To discipline the CCP at minimum cost, members offer the CCP a junior tranche and demand capital contribution. Our results endogenize key layers of the default waterfall and deliver novel predictions on its composition, collateral requirements, and CCP ownership structure. [ABSTRACT FROM AUTHOR]

Combining experimental data sets from seven individual studies, including 255 asset markets with 2,031 participants, and 36,326 short-term price forecasts, we analyze the role of heterogeneity of beliefs in the organization of trading behavior by reproducing and reconsidering earlier experimental findings. Our results confirm prior evidence that price expectations affect trading behavior. However, heterogeneity in beliefs does not seem to drive overpricing and asset market bubbles, as suggested by earlier studies, and we find no indication of short-term beliefs being better determinants of trading behavior than longer-term beliefs. [ABSTRACT FROM AUTHOR]

What are useful ways to characterize varying employment systems? This article returns to an older idea, Internal Labor Markets (ILMs). The traditional assumption characterized ILMs as the core of the labor market but current thinking argues that ILMs have frayed. Little direct measurement has been carried out, however, and both viewpoints have relied on proxies or case studies. The author utilizes a new survey of employed US workers to provide an estimate of the incidence of ILMs and finds that between 25 and 40% percent of adult workers are in ILMs. The article then elaborates theory regarding the practices of ILMs, a theory grounded in the idea of complementary bundles of human resource practices, and asks what are the correlates of being in an ILM. Findings show that although wages in ILMs are no higher than non-ILM wages, ILMs are positively associated with other aspects of job quality and attitudes across the board. [ABSTRACT FROM AUTHOR]

For digital-native fast-moving consumer goods (FMCG) manufacturers that sell through their own online channel and have made headway into supermarkets, brand stores can represent the next step in a multichannel distribution strategy. In this research, the authors investigate the impact of introducing a brand store on a digital-native FMCG brand's sales in its existing company-owned online channel and in independent supermarkets, as well as on the brand's supermarket distribution. By incorporating brand store sales and operational costs, this research also specifies the entry effects on the brand's top-line total brand sales and bottom-line operating profit. Based on before-and-after-with-control-group analyses of the entry of ten brand stores by a digital-native FMCG brand, the authors show that brand store entry boosts supermarket sales, partially driven by a brand store's positive effect on the number of supermarkets listing the brand. Although they cannibalize company-owned online sales, brand store entries generate an influx of own brand store sales that offset online channel losses. Still, accounting for brand stores' operational costs reveals that top-line growth is not always enough to preserve the bottom line. [ABSTRACT FROM AUTHOR]

Financial markets reveal information that firm managers can utilize when making equity value-enhancing investment decisions. However, for firms with risky debt, such investments are not necessarily socially efficient. Despite this friction, we show that learning from prices improves investment efficiency. This effect is asymmetric, however, as investors learn less about projects that decrease the riskiness of cash flows: efficiency is lower for diversifying investments than for focusing (risk-increasing) investments. This also implies that investors' endogenous learning further attenuates risk shifting but amplifies debt overhang. Our model provides a novel channel through which learning from financial markets affects agency frictions between stakeholders. [ABSTRACT FROM AUTHOR]

After digital platforms have become successful in the information technology (IT) industry, incumbents from traditional industries increasingly implement digital platform strategies. However, there is mixed evidence on whether these incumbents benefit from digital platform strategies. To provide systematic insights, we focus on the banking industry. With the emergence of open banking, banks have begun implementing digital platforms to unlock the innovative power of third-party developers. We conducted an event study based on the announcement of digital platform strategies in a global sample of 165 banks. We show that, on average, investors react positively to the announcements. Contrary to our expectations, this effect is more substantial for banks from emerging markets than those from developed markets. Prior artificial intelligence (AI) orientation only partly contributes to investors' favorable perception of a digital platform strategy. These results point to the complex interplay of AI orientation and digital platform strategies, yielding questions for future research. [ABSTRACT FROM AUTHOR]

The "Great Trade Collapse" triggered by the 2008-2009 crisis calls for a careful assessment of the trade losses from financial crises. We adopt a more detailed perspective by looking at the response of different types of trade (i.e. consumption, intermediate, capital goods, and business services) following various types of financial crises (i.e. debt, banking, and currency crises) in 41 emerging markets. Estimations performed in the 1980-2019 period using a combination of impact assessment and local projections to capture a causal dynamic effect running from financial crises to the trade activity show that the collapse of total trade is long-lasting and mainly driven by the fall of intermediate goods and to some extent capital goods, while trade in consumption goods and business services is more resilient to crises. Therefore, financial crises could lead to considerable disruption of global value chains, as observed during the Global Financial Crisis (GFC), and easily spill over from one country to another through trade linkages. The examination of heterogeneity reveals that total and sectoral trade is more severely impacted in countries with a lower share of manufacturing exports, less diversified exported products, and trading partners, with lower demand from trading partners and when associated with a deterioration of the domestic and external financial conditions and sudden stops. By contributing to the understanding of the trade effects of financial crises, our analysis provides insightful support for the design and implementation of policies aimed at coping with these effects. [ABSTRACT FROM AUTHOR]

The purpose of the article is to analyze the relevance of earnings fundamentals in predicting extreme price reversals of an emerging stock market. We collect monthly price data on six sector indices from Bombay Stock Exchange (BSE) of India for the period 2004–2019. The research decomposes industry stock returns into Potential Maximum Gains (PMG) and Potential Maximum Losses (PML) with price extremes at first and then tests price reversal behavior using Generalized AutoRegressive Conditional Heteroskedasticity (GARCH) and vector autoregressive (VAR) models. The study finds symmetry between PMG and PML in the banking, realty, and oil sectors, while the asymmetric reversal behavior is noted in the automobiles and capital goods industries. The presence of industry fundamentals in the models estimating the reversal behavior of share prices enhances their predictive power, which suggests the significance of value strategies in making gains from extreme price variations. The price reversal behavior is sector specific and found inconsistent in emerging market. Hence, the investors cannot overlook the relevance of the industry characteristics and earnings fundamentals while predicting the stock price behavior in emerging markets. [ABSTRACT FROM AUTHOR]

Extant research has popularized the perspective that strong network effects produce "winner-take-all" outcomes, which leads platforms to invest in user growth and encourages investors to subsidize these platforms. However, user growth does not necessarily imply strong user stickiness. Without user stickiness, strong network effects in the current period may fade in future periods, thus rendering a user growth strategy ineffective. By adding a time dimension to network effects, we developed a model of cross-period and within-period network effects to explain how different types of network effects drive value. We emphasize that the cross-period same-side network effect contributes to user stickiness, while the within-period cross-side network effect persists conditional on user stickiness. We propose that one reason for platforms having heterogeneous cross-period same-side network effects is because of the "product learning" mechanism: it is expected that products with higher uncertainty have a stronger cross-period same-side network effect. Based on different drivers, we extend the customer lifetime value model (CLV2) to two-sided platform markets, allowing us to measure how different interventions drive platform value. Using Groupon data, we verify our insights and discuss platform design choices that enhance user stickiness when the cross-period same-side network effect is weak. [ABSTRACT FROM AUTHOR]

We study how Apple and independent repair service providers used different physical, regulatory, and digital instruments to influence each other's abilities to control the repair aftermarket of the Apple iPhone between 2007 and 2020. We show how the emergence of digital instruments for enacting control, made possible through emerging functionality for tethering, encryption, and temporary binding implemented in the iPhone itself, was shaped by and shaped the actions of Apple and the independent repair service providers, and led to a dominant tension between encrypted authorization and inscription of control through Apple and collective legal action by independent repair service providers. Our analysis provides a more nuanced understanding of control enactment by highlighting the implications of using different mediums for exercising control, and we provide a new way to understand the dialectics involved in enacting control in digital product aftermarkets. Our study provides insights that can inform the regulation of digital product aftermarkets--in particular, the ongoing debate about rights-to-repair legislation. [ABSTRACT FROM AUTHOR]

As companies expand their international footprint, insight regarding how to effectively organize international selling and sales management (ISSM) efforts is becoming increasingly important. Unfortunately, most prior research on personal selling and sales management is grounded in a domestic market perspective, which limits the relevance of its findings to situations in which sales activities occur between stakeholders located in different national markets. This special issue responds to the need for dedicated research on ISSM through six articles that explore phenomena arising from the interaction between international salespeople and international customers and their domestic counterparts. Moreover, this editorial builds on these six articles to advance a research agenda rooted in an interaction-based conceptualization of the ISSM field that identifies areas of inquiry related to international salespeople, international customers, and international managers, and subsequently prioritizes these research opportunities using input provided by sales practitioners. This special issue and editorial thus identify critical, underexplored research topics in the ISSM domain that are accompanied by a series of illustrative examples of how best to contribute to this emerging but important literature stream. [ABSTRACT FROM AUTHOR]

Although rapid technological development has resulted in the proliferation of digital platforms, there is limited understanding of these platforms' roles in international markets. Drawing on the information economics perspective, the authors investigate whether live streaming, as an emerging platform-based function, enables foreign sellers to enhance their sales performance in host markets. Using a unique longitudinal data set from a business-to-customer digital platform in China, the authors find that live streaming use is positively associated with international seller sales performance. This positive effect is stronger when cultural distance is higher. Moreover, the influence becomes stronger when product price is higher, while the effect is weaker for name-brand products than for non-name-brand products. These findings provide rich insights on the role of digitalization to the international marketing literature. [ABSTRACT FROM AUTHOR]

We offer a new perspective on how cultural markets are structured and the conditions under which innovations are more likely to emerge. We argue that in addition to organization- and producer-level factors, product features—the locus of marketplace interaction between producers and consumers—also structure markets. The aggregated distribution of product features helps producers gauge where to differentiate or conform and when consumers may be more receptive to the kind of novelty that spawns new genres, our measure of innovation. We test our arguments with a unique dataset comprising the nearly 25,000 songs that appeared on the Billboard Hot 100 chart from 1958 to 2016, using computational methods to capture and analyze the aesthetic (sonic) and semantic (lyrical) features of each song and, consequently, the market for popular music. Results reveal that new genres are more likely to appear following markets that can be characterized as diverse along one feature dimension while homogenous along the other. We then connect specific configurations of feature distributions to subsequent song novelty before linking the aesthetic and semantic novelty of individual songs to genre emergence. We replicate our findings using industry-wide data and conclude with implications for the study of markets and innovation.

We examine the association between margin requirements and the market's efficiency in incorporating firm-specific and market-level public news. Combining the Fed's 22 changes in margin requirements with a hand-collected sample of earnings announcements between 1934 and 1975, we show that higher margin requirements induce greater delay in incorporating earnings information into prices. We draw similar conclusions when we analyze the Hou and Moskowitz (2005) price delay measure, as well as indirect measures of leverage constraints over recent years. Further tests suggest that, despite the Fed's expressed intent to curtail excess speculation, higher margin requirements restrict trading by arbitrageurs more than noise traders. [ABSTRACT FROM AUTHOR]

We confirm prior evidence that bonds on average are offered at prices below their immediate post-offer secondary market prices. However, in cases where banks lead–manage their own bond offerings the underpricing is significantly less as compared with other non-self-marketed offerings. These findings are robust across various matched samples and selection models. Our results suggest that the bond offering process is characterized by substantive agency conflicts between shareholders of corporations (issuers) and underwriters. [ABSTRACT FROM AUTHOR]

Horizontal referrals--when suppliers recommend other suppliers--are a common phenomenon in complex B2B markets. For the referring supplier, giving the best possible horizontal referral may strengthen the relationship with its customer, yet it may also threaten the referring supplier's future revenues and cross-selling opportunities. Instead, the supplier could make an obligatory referral, one that fulfills the obligations of recommending another supplier while keeping the referring supplier's own interests paramount. The authors rely on role theory and its antecedents (mutual trust and referring supplier's dependence) to determine when a referring supplier adopts the role of a friend (vs. a businessperson) and gives the best possible referral (vs. an obligatory referral). Study 1, an experiment, supports the theoretical model. Study 2, a conjoint study, links the observable antecedents of the referring supplier-customer relationship to the choice of horizontal referrals. Study 3, another experiment, looks at the consequences of the horizontal referral on the referring supplier-customer relationship and shows that providing an obligatory referral can hurt the customer's intent to continue the relationship with the supplier. This effect is mediated by the customer's perceived alignment of interest with the supplier. For B2B marketing research and practice, the authors report that the supplier's dependence is critical in predicting the quality of horizontal referrals, even though an exploratory survey showed that customers overlook that dimension and focus on mutual trust when seeking referrals. [ABSTRACT FROM AUTHOR]

We develop a quantitative model with imperfections in domestic and international financial markets that generates strong effects of U.S. monetary policy on emerging markets (EMs). Financial imperfections prevent arbitrage both between local EM lending and borrowing rates, and between local-currency and dollar borrowing rates. An adverse feedback effect between financial health and external conditions amplifies the domestic "financial accelerator," leading to large cross-border spillovers of U.S. monetary policy shocks. The model implies a link between uncovered interest parity violations and local credit spreads, a prediction we show the data strongly supports. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]

This article reflectively applies measurement tools to gage whether a renowned financier and champion of shareholder capitalism, in 20th century business history, might be categorized as a corporate psychopath. The article examines aspects of the career of the outstanding financial investment manager, Bernie Madoff. Psychopaths and corporate psychopaths are defined as background to the article. Gauges of corporate psychopathy and psychopathy are outlined which could be modified by market research companies to identify corporate psychopathy in organisations as a way of aiding investment decisions into such organisations. The current article concludes that insolvencies such as those at Madoff's investment company, have been distinguished by CEOs being present who were simultaneously the lauded agents of financial market capitalism and who embodied the traits of the corporate psychopath. The examination of potential corporate psychopaths using this historical methodology helps inform ideas about what the effects of psychopathic leadership may be within economies and gives new insights into the reasons for the greed, risk taking, and unethical practices found in financial markets. Findings support the accepted view that corporate psychopaths can be discovered in senior roles in the financial services sector. This current paper provides new avenues for research offerings from market research companies. For example, business to business researchers could undertake research to identify firms more likely to be longitudinally viable, sustainable and less likely to collapse (i.e., non-psychopathic firms). Investment companies like pension funds could use such research to identify firms that are less risky, more ethical, better led, and therefore safer to invest in. [ABSTRACT FROM AUTHOR]

Clinical outreach is a crucial but understudied health care service delivery model. Physicians staffing rural outreach clinics must allocate a limited resource (i.e., their time) between caring for patients at their main sites and outreach locations. Using a unique 30-year data set of decisions made by cardiologists, the authors estimate a constrained utility maximization model of time allocations across home and outreach locations. The results show that travel distance, potential competition, and patient demand for cardiology services significantly influence allocation decisions. This structural model is used to simulate the impact of a predicted reduction in cardiologist supply. The expected impacts are unevenly distributed, with some rural locations experiencing large decreases in access. The authors evaluate two policies to restore rural access: targeted immigration and a subsidy program. A subsidy program with an estimated annual cost of $406,000 can restore outreach after a 10% reduction in cardiologist supply. This option should be preferred to recruiting and supporting five additional cardiologists under a targeted immigration strategy. This research demonstrates the value of marketing modeling in addressing limited access to health care services and evaluating alternative policies for maintaining access in the face of coming physician shortages. [ABSTRACT FROM AUTHOR]

We examine the impact of the failure of Satyam Computer Services Ltd. ("Satyam"), a major corporate governance related event in India, on related party loans of Indian public companies. Using data from a balanced panel of 794 firms for the years 2006–2012, we find that the Satyam failure had a significant negative impact on related party loans given by Indian firms. The average of net related party loans (as a proportion of total assets) declined from 2.37% in 2008 to 0.23% in 2010. Furthermore, the reduction in related party loans was more prominent in firms with lower levels of external monitoring. Finally, since prior research suggests that there was no significant Satyam effect on the frequency or attendance at audit committee meetings, our results suggest that there can be substantive changes in operational decisions without observable changes in governance. [ABSTRACT FROM AUTHOR]