Price clustering on the Shanghai Stock Exchange

We investigate price clustering of intraday trades and negotiated block trades on the Shanghai Stock Exchange (SSE) from 2003 to 2009. Prices of traded assets tend to cluster on certain final digits, such as 0 and 5. In Chinese culture, 8 is associated with good luck and 4 with death so these numbers may be attractive or avoided. We find that price clustering on the final digit of 0 is significantly higher during the morning call auction and early in the trading day. We find no evidence of price clustering for the digit 8, but there is a significant dearth of prices ending in the inauspicious number 4. Price clustering is significantly higher for negotiated block trades, for which about 28% end with 0. Multivariate analysis shows that price clustering is lower for more liquid firms, but higher for firms with higher return volatility, a higher price level, or when the market is volatile. Our evidence supports the costly negotiation hypothesis. Our results also support the attraction hypothesis in that we document significant price clustering at round numbers and even numbers even after controlling for factors that are associated with price uncertainty.     

Brand morphing across Wal-Mart customer segments

The premise of segmentation theory is that different segments each have a discrete customer profile and behavioral characteristics. At a conceptual level, the recent branding literature recognizes that different sub-cultures or segments could experience different meanings of an organization's brand. However, few quantitative studies address the issue. The current paper combines branding and segmentation theory and offers a new perspective on whether all segments have the same brand meaning. A leading discount retailer, Wal-Mart, is the focus of this Canadian-based investigation. Two segments of Wal-Mart customers are the basis of the study — one segment preferring Wal-Mart and one less attached. The research quantifies the two networks of brand meaning that the two segments associate with the Wal-Mart (corporate) brand. Empirically, brand morphing of the corporate brand occurs, with different brand meanings across the two segments.     

Leadership Competencies for Hotel General Managers: The Differences in Age,Education, and Hotel Characteristics

This study was designed to explore the leadership competencies necessary for general managers (GM) in Thailand hotels. The exploratory factor analysis extracted six leadership competency components: leadership, motivational/interpersonal skills, strategic orientation, planning and implementation, team building and ethics, communication skills, flexibility, and concern for the community. The results showed that team building and ethics, leadership, and communication skills are the most important factors for the GMs. In contrast, flexibility and strategic orientation were the least important competencies for them. There were significant differences between leadership competency factors and GMs’ age, education, hotel stars, and hotel locations in diverse aspects.     

‘Gone to Gowings’ - An Analysis of Success Factors in Retail Longevity: Gowings of Sydney

Low productivity within service industries has been a major concern, but this situation is unlikely to improve without a general change in the way productivity is measured and managed. This paper aims to illustrate the value of stepwise data envelopment analysis (DEA) for measuring and benchmarking productivity. The issues and problems regarding productivity measurement as well as the advantages of using DEA in productivity measurement are analysed. The article extends current DEA applications by developing a stepwise approach to DEA. The latter technique combines correlation and DEA analysis for developing robust models and sound productivity measurement. The advantages of the proposed methodology are illustrated by applying it to a dataset of three-star hotels in the UK. Six inputs and three outputs are identified as the factors affecting rooms division efficiency in three star hotels.     

The long-run Phillips curve and non-stationary inflation

Modern theories of inflation incorporate a vertical long-run Phillips curve and are usually estimated using techniques that ignore the non-stationary behaviour of inflation. Consequently, the estimates obtained are imprecise and unable to test the veracity of a vertical long-run Phillips curve. We estimate a Phillips curve model taking into account the non-stationary properties in inflation and identify a small but significant positive relationship between inflation and unemployment. The results also provide some evidence that the trade-off between inflation and the rate of unemployment in the short-run worsens as the mean rate of inflation increases.     

Brazilian management gurus as reflexive soft-HRM practitioners: an empirical study

This article is an empirical study of Brazilian management gurus, that is, Portuguese-speaking gurus who practise almost wholly in Brazil. It is based on secondary, and primary elite interview data, and finds that Brazilian gurus are reflexive, national-culturally congruent, soft-HRM practitioners, a collective institution working with companies on the implementation of soft-HRM initiatives. Identifying Brazilian gurus in this way is our first contribution. Our second contribution is to provide an empirical account of the very existence and work of these particular national gurus, distinguished from international gurus (like Tom Peters), and not otherwise mentioned in the literature on gurus or soft-HRM. Our third contribution is to present gurus' own understandings of their practice in this soft-HRM role. This they relate to the Brazilian cultural context, and distinguish from that of business schools and motivational speakers. They also identify personally unique characteristics. Our final contribution, taking these three together, is to explore their implications for understandings of HRM, in Brazil and internationally, particularly in relation to the role management gurus.     

Sales force automation systems: An analysis of factors underpinning the sophistication of deployed systems in the UK financial services industry

This study investigates organizational and strategic context variables that are linked to the sophistication of sales force automation systems in UK financial services firms. We find that increasing sophistication in SFA deployment, evaluated as a count of the number of types of results of sales campaigns that are measured, is driven directly by the information orientation of the host firm. We also find that the “sophistication” of deployed systems is, in fact, limited — the information held on the systems cannot underpin the strategic goals of the sales/marketing managers. We theorise that adoption of SFA systems is driven by managerial imperatives and that these have resulted in sales force resistance — shown by the paucity of information held on adopted SFA systems.     

An empirical investigation of organizational memetic variation

The potential of a theory based on organizational memes in coevolution with the environment has been postulated, but remains empirically under-developed. This study explores whether understanding organizational memetic variation is empirically possible and, if so, whether it might, with further development, provide managers with early indications of a misalignment between organizational action (operationalized as memetic variation) and strategic intent—the amount of memetic variation needed to stay aligned with the competitive environment. A method for empirically identifying knowledge-based memes in everyday practice is developed. It stems from modern advances in genetics allowing micro-level changes in genes to be linked to macro-environmental dynamics. Using the concept that memetic variation is caused by everyday, uncontrollable uncertainties of interpretation, memetic variation is reduced to seven categorical types. A highly exploratory quasi-experimental design allows a preliminary comparison of a would-be innovative ‘Portfolio Management Committee’ with self-organizing Internet chat-room settings that are representational of open-source innovation. Results are consistent with predictions showing that higher levels of variation are seen in the latter, despite the former’s strategic intent of innovating to stay aligned with a dynamic environment. Further work is needed, however, to test reliability and validity.      

Commonality in Codes of Ethics

We create a database of company codes of ethics from firms listed on the Standard & Poor’s 500 Index and, separately, a sample of small firms. The SEC believes that “ethics codes do, and should, vary from company to company.” Using textual analysis techniques, we measure the extent of commonality across the documents. We find substantial levels of common sentences used by the firms, including a few cases where the codes of ethics are essentially identical. We consider these results in the context of legal statements versus value statements. While legal writing often mandates duplication, we argue that value-based statements should be held to a higher standard of originality. Our evidence is consistent with isomorphic pressures on smaller firms to conform.     

Managerial effect or firm effect: Evidence from the private debt market

This paper provides evidence that the managerial effect is a key determinant of firms’ cost of capital, in the context of private debt contracting. Applying the novel empirical method developed by an earlier study to a large sample that tracks the job movement of top managers, we find that the managerial effect is a critical and significant factor that explains a large part of the variation in loan contract terms more accurately than firm fixed effects. Additional evidence shows that banks “follow” managers when they change jobs and offer loan contracts with preferential terms to their new firms.