The differential effects of classified boards on firm value

Classified boards actually benefit firms that have low monitoring costs and greater needs for advisory services. Previous literature has emphasized the entrenchment effect of classified boards. However, we find that this adverse impact of classified boards can be offset or even superseded by the potential benefits of board classification for firms who hope to benefit from the advisory services of their independent directors. We show that firms with greater advising needs appoint more outside directors with diverse attributes and expertise, qualifications that enhance the ability to provide useful advice to managers. Furthermore, in such firms, board classification is associated with higher performance sensitivity of forced CEO turnover and better acquisition performance. Conversely, in firms with high monitoring costs, board classification hurts managerial equity-based incentives and risk-taking incentives. These findings suggest how and through which channels classified boards engender the differential effects on firm value.     

Panel data models with multiple time-varying individual effects

This paper considers a panel data model with time-varying individual effects. The data are assumed to contain a large number of cross-sectional units repeatedly observed over a fixed number of time periods. The model has a feature of the fixed-effects model in that the effects are assumed to be correlated with the regressors. The unobservable individual effects are assumed to have a factor structure. For consistent estimation of the model, it is important to estimate the true number of individual effects. We propose a generalized methods of moments procedure by which both the number of individual effects and the regression coefficients can be consistently estimated. Some important identification issues are also discussed. Our simulation results indicate that the proposed methods produce reliable estimates.     

Extended generalized purchasing power parity and optimum currency area in East Asian countries

We build a model in which corporate governance allows for the adoption of an institution acting as a mechanism to control agency problems. Our model predicts that the incentive to adopt such an institution is decreasing in ownership concentration and increasing in free cash flow. Testing our theoretical model by means of a sample of 157 Italian listed companies over the period 2004–2007, we find that board composition favours independent members in firms with a large free cash flow, and executive members in firms with high ownership concentration, supporting the view of governance as a way to limit agency costs.     

Explicating the ‘like’ on Facebook brand pages: The effect of intensity of Facebook use,number of overall ‘likes’, and number of friends' ‘likes’ on consumers' brand outcomes

This study examined the relationship between the number of overall ‘likes’ and friends' ‘likes’ on Facebook brand pages in influencing consumers' brand attitude, brand trust, brand involvement, and purchase intention, drawing upon theoretical concepts including diffusion of innovations, social capital theory, strength of weak ties, sociometric versus perceptual popularity, and prior research in online impression formation. Results of a 2 × 2 experiment revealed significant main effects of number of overall ‘likes’ and friends' ‘likes’ on key dependent measures. A significant interaction effect was also found between overall ‘likes’ and friends' ‘likes’. Additionally, intensity of Facebook use also mediated the relationships between number of overall ‘likes’ and friends' ‘likes’ with brand attitude, brand trust, and purchase intention.     

A model of sustainable household technology acceptance

There is an expanding range of technologies used in a residential setting to enable sustainable living, including ‘smart’ technology that uses learning and connectivity to modify household behaviours. Understanding what drives the adoption of sustainable household technology will allow product developers, marketers and policy makers to use technology to reduce the environmental impact of homes. Based on the United Theory of Acceptance and Use of Technology, a model that explains predictors of intention to adopt sustainable household technology was developed and tested via an online survey of 592 US consumers. The results from structural equation modelling demonstrate that product attributes of sustainable household technology including performance, compatibleness and hedonic expectancy as well as consumer characteristics, in specific, sustainable innovativeness significantly predicts adoption intent. Conversely, the model testing shows that effort expectancy as well as social pressure and environmentalism are not significant predictors of adoption intention Theoretical and practical implications are discussed.     

Leaders’ Core Self-evaluation,Ethical Leadership,and Employees’ Job Performance: The Moderating Role of Employees’ Exchange Ideology

With the increasing demand for ethical standards in the current business environment, ethical leadership has received particular attention. Drawing on self-verification theory and social exchange theory, this study investigated the effect of leaders’ core self-evaluation on the display of ethical leadership and the moderating role of employees’ exchange ideology in the relationship between ethical leadership and employees’ job performance (i.e., task performance and organizational citizenship behavior). Consistent with the hypotheses, the results from a sample of 225 dyads of employees and their immediate leaders showed a positive relationship between leaders’ core self-evaluation and ethical leadership. Moreover, the results showed that ethical leadership mediates the effects of leaders’ core self-evaluation on employees’ job performance. Furthermore, we found that employees’ exchange ideology moderates the relationship between ethical leadership and job performance. The theoretical and practical implications of these findings are discussed.     

Research on target costing: past,present and future

Although target costing is an extensively studied topic in the management accounting literature, a holistic investigation into its methodological development is missing. Therefore, an extensive state-of-the-art analysis is conducted that focuses on articles in highly rated journals. We determine nine distinct research streams that encompass further developments of the traditional target costing methodology. By grouping these streams into three research scopes, we outline the achieved progress as well as remaining tasks for further enhancements. Due to the abundance of these tasks, we align them with six future themes of management accounting that we identified as being particularly influential to target costing. As a result, six promising topics for researchers to advance target costing are determined. Additionally, our findings reveal to managers of which issues they should be particularly aware with respect to the performance of their target costing processes.     

Influence of brand relationship on customer attitude toward integrated resort brands: a cognitive,affective, and conative perspective

ABSTRACT

Despite the significance of understanding customer behavior in the integrated resort setting, only limited research has been conducted on this topic. Thus, this study aims to identify and assess the antecedents of integrated resort brand loyalty from the perspective of Oliver’s cognitive, affective, and conative theory of attitudinal brand loyalty model. . A total of 443 respondents who had experienced integrated resorts participated and completed a survey questionnaire. A positive relationship was observed between two-way communication and brand attitude, emotional exchange and brand attitude, brand partner quality and brand attitude, and brand attitude and behavioral intention toward integrated resort brand. Results revealed the association between cognitive, affective, and conative dimensions and integrated resort brand value. This notion suggests that integrated resort brands carry a high awareness of relationship, and the brand will invoke an emotional value in customers. Therefore, integrated resorts should consider customer–brand relational aspects to achieve long-term success for the integrated resort brand.     

Cheap talk? Strategy presentations as a form of chief executive officer impression management

Research summary: We develop and test a set of hypotheses on investors' reactions to a specific form of impression management, public presentations of overall strategy by Chief Executive Officers (CEOs). Contrary to expectations from a “cheap talk” perspective, we suggest that such strategy presentations convey valuable information to investors, especially in conditions of heightened information asymmetry associated with varying types of new CEOs. Broad empirical support for our theoretical arguments is shown in a sample of strategy presentations carried out by NYSE and NASDAQ listed organizations over 10 years. Our research contributes to literature on new CEOs and impression management. We draw out implications both for management and for further research. Managerial summary: We examine the impact of public presentations on company strategy by Chief Executive Officers (CEOs) on company stock prices. Adjusting for market movements in general, on average stock prices rose by 1.6 percent following these strategy presentations. Strategy presentations received larger reactions the more the CEO was unfamiliar to investors. Thus, stock price gains for new CEOs in general were 5.3 percent; for external, within‐industry new CEOs, they were 9.3 percent; and for external, outside‐of‐industry new CEOs, they were 12.4 percent. Given that only 40 percent of new CEOs present on strategy in their first 200 days post‐appointment, we suggest that new CEOs pay more attention to this potential means of communicating, especially if they are unfamiliar to investors. Copyright © 2015 John Wiley & Sons, Ltd.