Vertical Integration,Foreign Multinationals and Stigler's Hypotheses: An Empirical Test Using Malaysian Data*

In this paper the hypotheses on motives for vertical integration as proposed by Stigler are empirically tested using a panel dataset from Malaysian manufacturing under both fixed‐effects and random‐effects specifications. Because the degree of multinational participation is expected to influence the results of the regression estimates, empirical tests are conducted with and without controlling for the effect of foreign firms’ participation. Depending on model specifications, evidence is found in favor of Stigler's hypotheses where vertical integration is positively related to demand growth and industry concentration. This result is generally consistent with those found in other vertical integration studies. Significantly, the coefficient estimates of the growth variable are not significant and biased downwards if there is no control on the effect of foreign multinationals in the estimation process.     

What drives sustainable student travel? Mode choice determinants in the Greater Toronto Area

Examination of mode choice behavior is an important step in accurately predicting future travel demand. Despite having somewhat unique travel needs and challenges, there is a lack of knowledge in understanding the mode use behavior of university student population. The existing studies on university populations relied on a relatively smaller sample in investigating the behavior. Therefore, using world's largest university student's travel database, this study examines the factors affecting the mode choice behavior of a diverse university student population with student samples from four universities and their seven campuses located across the Greater Toronto Area (GTA) in Canada. Additionally, stratifying this diverse population using their attitudinal responses towards numerous travel modes, this study also estimates three additional mode choice models to obtain a more comprehensive understanding of how students in different markets, with different latent attitudes towards transportation, vary in terms of sustainable mode choice. A cluster analysis based on fourteen attitudinal responses, was conducted to stratify the sample whereas the popular multinomial logit approach was used to estimate the mode choice models. This study finds transit pass and bike ownership as important determinants that govern sustainable mode choice among the students in the region. The findings of this study could facilitate the sustainability offices at the four universities in making an informed policy decision in shifting the mode use behavior of students towards sustainable modes.     

Investigation of Directional and Functional Relationships of Australian Dollar Exchange Rate,Steam Coal Export,and Steam Coal Price

The interesting finding in this article is that the Australian coal exporter's loss, which occurs due to a strong Australian dollar, is less than the profit from increasingly higher prices of Australian steam coal. For this reason, Australian steam coal exporters choose to export more when the price is high. The empirical results of this analysis confirm that for each one cent increase in Australian dollar value against the U.S. dollar, the Australian steam coal price increases by 0.8182 U.S. dollars and for each additional one million tons export of Australian steam coal, the Australian steam coal price increases by 1.752 U.S. dollars.     

Designing corporate brand experience in an online context: A qualitative insight

This study explores the dimensions and components of corporate brand experience in an Internet setting. Corporate brand experience (CBE), which is a source of a company's added value, could be an effective way to position a corporate brand in relation to the overall corporate marketing strategy. However, the concept of CBE has attracted very little attention from previous research, thereby our understanding of what the concept is and how to operationalize it is limited. Previous brand experience research is mainly focused on the conceptual understanding of brand experience itself, and/or the product brand level (rather than at corporation level). Understanding CBE is important because corporate brand equity (e.g. corporate image, brand loyalty) is dependent not only on how one is satisfied with the product (mostly addressed by functional/performance values of product), but also through the values of the corporation (corporate brand values). This study thus contributes theoretically to the corporate and online branding literature by proposing underlying new dimensions and components of CBE in an online environment. A series of focus group discussions (FGDs) with 32 online banking respondents informs the study. We identify five main themes and 26 sub-themes of corporate brand experience — corporate visual identity, functionality, emotional, lifestyle and corporate/self-identity. Financial service providers can address these dimensionalities during the process of brand positioning and when designing their corporate marketing in an online setting.     

Australian financial firms’ exposures to the level,slope, and curvature of the interest rate term structure

This study examines the risk exposure of Australian financial firms to changes in the term structure of interest rates. Non-linearity in the interest rate term structure is captured by the three-factor model of interest rate level, slope, and curvature. We observe that financial firms have negative exposures to the interest rate level, while non-financial firms have positive exposures. This finding suggests that financial firms need to hedge against rising interest rates, while non-financial firms need to hedge against falling interest rates. Small banks and insurance companies have a positive risk exposure to the slope factor, while real estate firms have a negative risk exposure to the curvature factor. Though the interest rate level is the most important factor, ignoring the slope and curvature factors could lead to underestimating a financial firm’s overall interest rate risk exposure. These findings are robust to controlling for the orthogonalized market return, time-varying equity risk premium, and the global financial crisis. This study offers practical tools to regulators, such as the Reserve Bank of Australia and Australian Prudential Regulatory Authority for assessing interest rate risk exposures of the financial and non-financial sectors.     

Catching up to the technology frontier: the dichotomy between innovation and imitation

Abstract Using data for 55 developing and developed countries, this research examines the roles of technology transfer, research intensity, educational attainment, and the ability to absorb foreign technology in explaining cross‐country differences in productivity growth. The results show that innovation is an important factor for growth in OECD countries, whereas growth in developing countries is driven by imitation. Furthermore, the interaction between educational attainment and the distance to the frontier is a significant determinant of growth in the overall sample.     

The influence of eco-label knowledge and trust on pro-environmental consumer behaviour in an emerging market

Consumers are increasingly concerned about the negative environmental implications of purchasing goods, which in turn shape their behaviour. Yet, there are indications that consumers do not always act on these concerns, causing an attitude–behaviour gap. For consumers to make ecologically responsible purchases, they need relevant product environmental information. Therefore, marketers and firms are increasingly integrating more detailed environmental information in their offerings, including eco-labels with externally validated information. This study integrates consumers’ knowledge and trust in eco-labels with their environmental knowledge to determine how these affect pro-environmental consumer behaviour (PECB). The findings suggest environmental and eco-label knowledge is positively associated with attitudes towards the environment, and that positive environmental attitudes and trust in eco-labels affect PECB. This implies that firms, policy-makers and accreditation organisations (i.e. labelling) can educate consumers about eco-labels and the environment to increase PECB. Such strategies will also build consumer knowledge and trust in eco-labels, necessary for facilitating PECB.     

Neighbors follow early adopters under stress: panel data analysis of submergence‐tolerant rice in northern Bangladesh

The benefits of a stress‐tolerant crop become visible under the stresses that the crop is tolerant against. We investigate the adoption of submergence‐tolerant rice in northern Bangladesh by using panel data of 461 households, interviewed in 2013 and 2015. The sample households were randomly selected in 31 villages where submergence‐tolerant rice seeds were given to a small number of farmers in each village. The results from the household fixed‐effects model indicate that submergence in the previous year increased the adoption of submergence‐tolerant rice. The adoption impact was larger among farmers who were neighbors of early seed recipients. Our results suggest that being neighbors of early seed recipients may have helped the neighboring farmers observe the benefits of the submergence‐tolerant rice under submergence. The results indicate the importance of the information flow from early recipients to neighboring farmers.     

Determinants of monetary penalties for environmental violations

This research investigates the likely determinants of monetary penalties for poor environmental performance. We retrieve data from Bloomberg on the monetary penalties imposed on companies in the European Union (EU) found to have performed poorly in corporate social responsibility (CSR), and particularly in the environmental aspects of CSR. Our primary findings reveal that firms with high levels of greenhouse gas and hazardous waste emissions are more likely to receive monetary penalties. On the other hand, firms that invest in green supply chain practices and disclose environment‐related matters avoid monetary penalties more. We also find that firms having executive compensation linked with environmental compliance face more monetary penalties. This finding adds a new dimension to the voluminous research on executive compensation that has investigated primarily the effects of cash and stock option‐based compensation schemes on pay–performance sensitivities. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment