Modeling the behaviour of inflation deviations from the target

This study tests for and models non-linearities in inflation deviations from the target in five OECD countries that adopted inflation targeting over the 1990s. Our tests reject the linearity hypothesis and we show that the exponential smooth transition autoregressive (ESTAR) model is capable of capturing the non-linear behavior of inflation misalignments. The extent of inflation deviations from the target varies across the OECD countries, with countries that consistently undershoot the target having a rapid adjustment process, whereas countries that overshoot the target have a slower revision back to equilibrium. Out-of-sample forecasts from the ESTAR model outperform the Markov regime-switching model.     

A New Test of the Real Interest Rate Parity Hypothesis: Bounds Approach and Structural Breaks

The real interest rate parity hypothesis is tested using data for the group of seven industrialized countries (G7) over the period 1970–2008. The contribution is two‐fold. First, the paper utilizes the bounds approach in order to overcome uncertainty about the order of integration of real interest rates. Second, a test is made for structural breaks in the underlying relationship using a multiple structural breaks test. The results indicate significant parameter instability and suggest that, despite the advances in economic and financial integration, real interest rate parity has not fully recovered from a breakdown in the 1980s.     

Trading frequency and asset pricing on the London Stock Exchange: Evidence from a new price impact ratio

This study proposes a new price impact ratio as an alternative to the widely used Amihud’s (2002) Return-to-Volume ratio. We demonstrate that the new price impact ratio, which is deemed Return-to-Turnover ratio, has a number of appealing features. Using daily data from all stocks listed on the London Stock Exchange over the period 1991–2008, we provide overwhelming evidence that this ratio, while being unequivocal to construct and interpret, is also free of a size bias. More importantly, it encapsulates the stocks’ cross-sectional variability in trading frequency, a relatively neglected but possibly important determinant of stock returns given the recently observed trends in financial markets. Overall, our findings argue against the conventional wisdom that there is a simple direct link between trading costs and stock returns by strongly suggesting that it is the compound effect of trading frequency and transaction costs that matters for asset pricing, not each aspect in isolation.     

OCCUPATIONAL AND INDUSTRY SPECIFICITY OF HUMAN CAPITAL IN THE BRITISH LABOUR MARKET

This paper builds on the recent literature on the importance of occupational and industry experience on wages and extends Kambourov and Manovskii's (2002) study using British data. Occupational experience is estimated to make a significant contribution to wage growth, while the evidence on industry specificity is not very supportive. The second contribution of the paper is that it assesses whether there is heterogeneity in the estimated returns to work experience across one-digit industries and occupations. The findings suggest that industry and occupational experience is important for individuals in professional and managerial jobs or jobs in the banking and finance sector.     

In the line of fire: managing expatriates in hostile environments

Abstract

This study explores best practice in the preparation and protection of strategic HRs deployed by Multinational corporations (MNCs) in hostile environments. By building on the literature from the areas of strategic and IHRM, expatriation, as well as risk and crisis management, the limitations and gaps of the extant research are highlighted. This provides a foundation for our investigation through a series of in-depth interviews with corporate executives, and insurers and relocation specialists with professional expertise in protecting and supporting HRs. This represents the first time such a detailed picture of the partnerships between MNCs and the specialists, required to deliver preparation and protection in hostile environments, has been depicted in the IHRM literature. The findings identify the challenges MNCs face when protecting their HRs and highlights the importance of specialist expertise, knowledge, and management. A framework for managing HRs within international hostile environments is subsequently developed offering an opportunity to systematically consider some of the ethical and strategic issues associated with the contemporary challenges of international mobility.     

(Unusual) weather and stock returns—I am not in the mood for mood: further evidence from international markets

This paper investigates the explanatory power of weather variables deviations in two leading international financial trading centres (New York and London) on 58 global stock indices over the period September 2000 to December 2013. The empirical results find that unusual deviations of weather variables from their monthly averages have a statistically significant effect on stock returns across global returns. The paper also attempts to explain these effects through the sales and energy prices mechanisms. The results provide strong support to both mechanisms.     

A Socio‐Psychological Perspective on Team Ambidexterity: The Contingency Role of Supportive Leadership Behaviours

In addressing the notion of team ambidexterity, we propose that socio‐psychological factors (i.e., team cohesion and team efficacy) may help team members to resolve paradoxical challenges and to combine exploratory and exploitative learning efforts. In addition, we theorize that senior executives may play an important role in facilitating the emergence of ambidexterity at lower hierarchical levels. In doing so, we develop a multilevel contingency framework and propose that the effectiveness of teams to achieve ambidexterity is contingent upon supportive leadership behaviours at the organizational‐level. Using multilevel, multisource, and temporally separated data on 87 teams within 37 high‐tech and pharmaceutical firms, we not only reveal how team cohesion and efficacy may matter for the emergence of team ambidexterity but also show that the effectiveness of supportive leadership behaviours from senior executives varies across cohesive and efficacious teams.     

Marketplace orchestration of taste: insights from the Bridgewater Hall

ABSTRACT

The aim of this paper is to explore how a concert hall can orchestrate and shape individuals’ classical music tastes. The paper is based on an 8-month ethnography at the Bridgewater Hall concert venue in Manchester. Our emergent findings illustrate how classical music tastes are influenced via the spatial meanings of the concert hall. These meanings include various physical, historical and sociocultural aspects that are revealed in the context of the Bridgewater Hall. Our study contributes to various streams of consumer culture theory research and opens up avenues for future research on the interrelationships of space and place with taste.     

THE TIME‐SERIES PROPERTIES OF UK INFLATION: EVIDENCE FROM AGGREGATE AND DISAGGREGATE DATA

This paper contrasts the time‐series properties of aggregate and disaggregate UK inflation. While aggregate inflation is found to be non‐stationary, unit root rejection frequencies are increasing when we use more disaggregate data. Structural break analysis suggests that structural shifts in monetary policy could alter inflation persistence. Additionally, panel evidence indicates that the unit root hypothesis can be rejected for sectoral inflation rates. Finally, we compare the persistence properties of UK inflation, finding statistically significant differences between aggregate and disaggregate series. Our analysis suggests that aggregation matters, which has important implications for econometric analysis and the conduct of monetary policy.     

Satisfying the basics: reflections from a consumer perspective of attractions management at the Millennium Dome,London

The Millennium Dome, London, was supposed to be the centrepiece of UK celebrations marking the start of the twenty‐first century. Unwittingly, it also emerged as the centrepiece of much media negativity and scrutiny — for the full length of its (projected) 1 year of opening. Four years after the doors closed, and with the perspective of time, this study reflects on the Millennium Dome as a case study of visitor attractions management — with data drawn from the consumer perspective at the time of opening. The focus of the primary research is on the satisfaction of visitors to the Millennium Dome. This was carried out when the attraction was weathering the media storm following its opening. Both quantitative and qualitative data was gathered from 530 exit questionnaires and 350 qualitative interviews. The quantitative data revealed visitor assessments of the experience of the Millennium Dome as a whole, and their assessments of its constituent parts (zones). The findings of the qualitative interviews led to the construction of a typology of meanings for visitors to the Millennium Dome. Even though time has elapsed since closure, both the quantitative and the qualitative findings still have a wider application in the interpretation of the visitor experience in attractions. Recommendations at the time indicated a need for management to focus on ‘the basics’ of the visitor experience with the addendum that a failure to do so could detract from ‘the most amazing day out ever’ or, indeed, ‘a very special day’ — and to ensure a closer match between marketing expectations and the reality of the experience. Reflection has not altered such often neglected but fundamental tenets. Copyright © 2005 John Wiley & Sons, Ltd.