How Does Asymmetric Information Affect Catering Behavior?

This study examines the association between information asymmetry and payout policy, and how asymmetric information affects catering behavior. Using forecast error and forecast dispersion as information asymmetry variables, this study finds that the more information asymmetry the firms face, the less likely they will increase dividends. Meanwhile, the effects of information asymmetry dominate over those of catering incentives for managers to decide dividend policy. Finally, our empirical results demonstrate that the signaling theory holds when dividend yield is high or market underestimates the EPS of firms. In addition, companies use share repurchases as a substitute for dividend increases, and take retained earnings into account when making dividend policies.     

ESO compensation: The roles of default risk, employee sentiment, and insider information

This paper derives a pricing model for employee stock options (ESO) that includes default risk and considers employee sentiment. Using ESO data from 1992 to 2004, the study finds that the average executive's subjective value is about 55% of the Black-Scholes value. Only employees who over-estimate firm returns (or insiders who know that the firm is under-valued) by about 10% per annum will prefer ESOs over cash compensation. Our model also shows that work incentives offered by ESOs may be far lower than those implied by Black-Scholes but that ESOs may induce less risk-taking behavior, contrary to typical moral hazard arguments. Findings may impact relevant accounting regulations as well as compensation decisions.     

Corporate Philanthropy,Research Networks,and Collaborative Innovation

Using a unique data set of corporate philanthropic activities, we find that direct giving activities are positively associated both with higher levels of innovation and innovation that is more influential, collaborative, and original. Our results suggest that much of what is ostensibly promoted as philanthropy actually reflects research‐related networking activities. The effect of direct giving on innovation is more pronounced in more opaque firms and more innovative and competitive industries. These findings provide evidence of the distinct motives by which firms choose between direct giving and foundation giving. Our study suggests that firms can use direct philanthropy to expand firm‐boundaries by developing innovation with research partners.     

＂Curated By Rong Rong＂ Qiu ＆ Ren Hang： Inner Ear

<正>Artist:Qiu & Ren Hang Date:January 15-March 9,2011 Venue:UCCA White Cube & Black Box In the latest addition to the'Curated By...'series,UCCA welcomes the cut...     

Industrial policy,social capital,human capital,and firm-level competitive advantage

Despite the popularity of governmental action devised to foster firm performance, the link between industrial policy and firm-specific human capital and social capital has received scant attention in the strategic management literature. In this paper, we build a dynamic optimization model which bridges concepts from industrial policy, social capital, human capital, and firm-level competitive advantage. We derive theoretical and policy implications from our competitiveness model, concluding that it increases in the opportunity cost of social capital reduce the production of human capital, so the optimal opportunity cost of social capital under feasible industrial policy should be set equal to zero. A government’s optimal industrial policy to help accumulate and churn human capital should reduce the opportunity cost of social capital to zero and reduce the probability of human capital leaving the community to zero. Thus, the model not only expands the potential determinants of competitive advantage in the context of governmental intervention, but also broadens the human capital theory and social capital theory in the creation of firm-specific human capital.

     

Interactions,innovation, and services

Although research has acknowledged the importance of supplier–buyer relationships for goods innovation, empirical evidence on the extent and nature of the effects of original equipment manufacturing (OEM) supplier–buyer relationships on service innovation remains scarce. Based on a survey of 152 suppliers in Taiwan, this study concludes that the interaction orientation of OEM suppliers is a key factor influencing the development of two competencies: joint innovation competence and cross-functional information dissemination competence. These two competencies contribute to OEM suppliers’ exploitative service innovation and explorative service innovation, respectively. In other words, applying a resource-based view, this study provides clarity regarding the linkages shown below (an organization’s strategic orientation influences its development of organizational capabilities and results in organizational performance) for the purpose of exploring the relationship between interaction orientation and service innovation.     

Does the Holland model of occupational choice (HMOC) perpetuate the Beancounter-Bookkeeper (BB) stereotype of accountants?

This article investigates the Holland model of occupational choice's (HMOC) development, influence, and validity in relation to its classification of bookkeepers, accountants, and business professionals. Study 1 reanalyzes published data and provides evidence that the Beancounter-Bookkeeper (BB) stereotype, which is promoted in the HMOC, is partially predictive of the personality characteristics of individuals who choose to enter professional accountancy. Study 2 investigates the influence of HMOC training, and exposure to accounting education, on perceptions of the personality type needed for accounting work; results indicate that: (1) HMOC training is associated with perceptions that accounting work requires a BB personality, and (2) the importance of investigative skills to accounting work increase with accounting education. Following this, we review evidence that suggests low validity in the HMOC's claims of greater job success and satisfaction among BB accountants. Finally, we consider three possible processes that may explain Holland and colleagues’ conjoining of accountants with bookkeepers. Together, the analysis promotes skepticism regarding whether the HMOC's claim that professional accounting success demands a passive, compliant, subservient, i.e., BB, personality supports the public interest obligations of professional accountants.     

Residents’ opinions on gaming activities and the legalization of soccer betting

Many Asian countries have an active gaming industry yet limited published information about the industry's development, operation, impact, or resident opinions is available. The purposes of this study were to examine residents’ opinions on various forms of gaming and to identify factors influencing their support for legalized soccer betting. Telephone interviews were undertaken with 449 Hong Kong residents. Respondents’ opinions were divided on most gaming issues, including the recently announced authorization of soccer betting. Soccer betting's association with potential economic benefits was the strongest indicator of respondents’ support for its legalization. Soccer betting proponents were generally more supportive of all other forms of gaming activities.     

Divergence in Variety Seeking: An Exploratory Study Among International Travelers in Asia

ABSTRACT

Variety seeking is a tendency in consumer behavior in which the consumer alternates between different makes of the same item in the quest for diversity. Variety seeking and exploratory behaviors help explain tourists’ consumption behavior and choice-making methods. Some studies have focused on the choice of food, restaurants, theme parks, travel activities, or destinations, but only a few have taken place within an international context. In this study, the influence of variety seeking and exploratory buying on travelers’ consumption behavior within an international context is analyzed. In essence, Asian travelers are compared with Western travelers. Several factors, which help explain divergence in variety seeking, are included in the analysis. The results demonstrate that variety seeking and an exploratory tendency have a significant relationship with travelers’ consumption behavior (for both Asian and Western travelers). In general, customers who have a high tendency for variety seeking are less loyal; however, there is no discernible difference between Asian and Western tourists in this regard.