An empirical study of equity agency costs and internationalization: Evidence from Taiwanese firms

Under methodologies of the event study procedure and the multiple regression analysis, this study investigates equity agency costs and internationalization, using a Taiwanese sample from 2000 to 2004. The evidence shows that the shareholder wealth effects of security offering announcements are unfavorable for higher equity agency costs, especially unfavorable for higher equity agency costs of foreign-exposed multinational corporations (MNCs) because internationalization renders monitoring more difficult in comparison to domestic corporations (DCs).This study suggests MNCs to increase their information transparency in order to achieve lowered equity agency costs, and help to reduce information asymmetry, thereby enable firms to raise capital on the best available terms.     

Intraday effect of news on emerging European forex markets: An event study analysis

We analyze the impact of euro zone/German and U.S. macroeconomic news announcements and the communication of the monetary policy settings of the ECB and the Fed on the forex markets of new EU members. We employ an event study methodology to analyze intraday data from 2011–2015. Our comprehensive analysis of the wide variety of macroeconomic information during the post-GFC period shows that: (i) macroeconomic announcements affect the value of the new EU country exchange rates, (ii) the origin of the announcement matters, (iii) the type of announcement matters, (iv) different types of news (good, bad or neutral) result in different reactions, (v) markets react not only after the news release but also before, (vi) when the U.S. dollar is the base currency the impact of the news is larger than in the case of the euro, (vii) announcements on ECB monetary policy result in stronger effects than those of the Fed, (viii) temporary inefficiencies are present in new EU country forex markets, (ix) new EU country exchange rates react differently to positive US news during the EU debt crisis compared to the rest of the period.     

The effect of ethical leadership on purchasers’ unethical behavior in China: The moderating role of ethical ideology

This paper examines the role of ethical leadership in managing purchasing agents’ unethical practices. By focusing on the manager-purchasing agent relationship within a firm's purchasing function, we investigate the effect of the manager's ethical leadership on purchasing agents’ unethical behaviors, and explore the moderating role of purchasing agents’ ethical ideology in this relationship. Our scenario-based experiment and survey-based empirical study show that a manager's ethical leadership in a purchasing team plays a critical role in reducing purchasing agents’ unethical behaviors. More importantly, the results reveal that the negative impact of ethical leadership on unethical behaviors is strengthened when the level of purchasing agents’ idealism or relativism is high. In addition, we found that ethical leadership has the strongest negative effect on the unethical behavior of purchasing agents when the agents have high levels of both idealism and relativism.     

On the Sources of the Feldstein–Horioka Puzzle across Time and Frequencies

This study quantitatively assesses existing explanations for the Feldstein–Horioka puzzle using time–frequency domain analyses for nine countries for the period 1885–2010. The main findings are summarized as follows. First, large economies (e.g. the United States, Italy) show higher correlations between saving and investment than middle‐sized and small countries do. Second, countries can be grouped into two time‐changing patterns of correlations: inverted U‐shaped and increasing patterns. Third, the fiscal balance seems most related to a positive saving‐investment correlation in many countries. Fourth, a global common factor plays an important role in explaining the Feldstein–Horioka puzzle.     

Fashion's role in visualizing physical and psychological transformations in movies

Using visual narrative art, this study looks into the images of cinema costumes and investigates how the fashion and styles in the movie reflect both the main characters' psychological changes and their identity-forming processes. This study analyzes the transformative effect of fashion (movie costume), the development of individual characters, and social and other situational influences on the heroine in the movie Pretty Woman (1990). Pretty Woman's underlying theme is derivative from three classic fairy tales: Cinderella, Pygmalion, and Beauty and the Beast. Such fairy tales in movie dramas are archetypal enactments representative of deep emotional and physical transformations audiences wish to experience. Watching protagonists' wardrobe changes and emotional transformations enables viewers to identify/self-recognize the storylines and catharses in the movies and often to achieve virtually the same experiences and emotional highs—outcomes which are the modern equivalent to Aristotle's “proper pleasure.”     

The emotional review–reward effect: how do reviews increase impulsivity?

A growing reliance on customer reviews prompts firms to develop strategies to encourage customers to post online reviews of their products. However, little research investigates the behavioral consequences of writing a review. The act of sharing personal opinions through reviews is a rewarding experience and makes customers feel socially connected. With an application of reverse alliesthesia theory, the current study predicts that such rewarding experiences drive online reviewers to seek other rewards, such as impulsive buying. Three lab-based and two field studies demonstrate such an emotional review–reward effect: sharing emotional information in the public realm of customer reviews, rather than forming similar opinions privately, drives participants to make more impulsive buying decisions.     

Determinants of Consumers’ Attitudes Toward a Sport Sponsorship: A Tale from College Athletics

Although sponsorship is considered one of the most important revenue sources, there have been surprisingly few attempts to explain how sponsorship works in the mind of a consumer in the nonprofit business segment. The purpose of this study was to identify factors that determine consumers’ attitudes toward sponsorship in college athletics. A conceptual model includes factors related to the sports property/event/team and sponsors. This study also examined the role of a perceived congruence between the sponsor and the sponsored property. A structural equation model test using a convenience sample of 460 students enrolled in a division I-A university suggested that specific characteristics of both the sponsor and the sponsored event are significant determinants of attitudes toward a college athletic sponsorship, and the perceived congruence plays an important part as moderator of a sponsorship perception–attitude link.