Firm orientation and strategy under regional market integration: A study of Canadian firms

Firms behave differently in free trade zones than in confined, domestic markets. To investigate this phenomenon, a taxonomy is developed of small- and medium-sized companies, which operate in the developing North American free trade area. The study describes each firm grouping and its associated performance attributes, and offers theoretical and normative implications. Among other findings, it appears that smaller companies which emphasize entrepreneurial orientation, product differentiation, and focus on specific market segments tend, under free trade, to enjoy superior performance.     

Cultural values in international advertising: An examination of familial norms and roles in Mexico

Past research suggests that the cultural value orientation, individualism-collectivism, should be considered when developing international advertising campaigns. The present study examines how (in)consistencies in collectivist values (e.g., familial norms and roles) may affect attitudes and behaviors toward advertised products within a collectivist culture, Mexico. The findings suggest advertisements that depict consistencies in local cultural norms and roles are viewed more favorably and purchase intention is higher than for advertisements that depict inconsistencies. The data provide no support for the moderating role of individual-level differences in value orientation (i.e., allocentric versus idiocentric tendencies) on persuasion measures. Interestingly, product category advertised appears to be the best moderator of the relative strength of role and norm effects on ad attitudes and purchase intention. © 1997 John Wiley & Sons, Inc.     

On Indexed Bonds and Aggregate Demand Elasticity

Bonds indexed to the price level or inflation have become popular and more common in the industrialized world. This paper examines the impact of indexed bonds on the price level elasticity of aggregate demand. With a model of aggregate demand based on the standard IS-LM framework and expanded to differentiate between bonds which are indexed to the price level and bonds which are not so indexed, we find that the existence of indexed bonds decreases the elasticity of aggregate demand with respect to the general price level.

Men at work. Wages and industriousness in southern Sweden 1500–1850

ABSTRACT

In his classic works on the industrious revolution, Jan de Vries argues that demand for new consumer goods trigged eighteenth century Europeans to work more. This implies that industrious behaviour and new consumption patterns were two parallel and interdependent processes that preceded the industrial revolution. However, there is an alternative explanation for any increase in labour output on household level, namely that the labourers were forced to work more to meet ends. An indication of this could be that day labourers’ relative wages decreased over time. In this article, we investigate this by studying wages from annual and casual labour in southern Sweden and compare their levels with consumption baskets.     

Can Empirical Demand Models Assist in CON Comparative Reviews? A Case Study in Florida

Certificate‐of‐Need (CON) programs for new hospital construction are intended to foster the best selection among competing hospital applications, given demands for hospital care in the community. Yet, the merits of CON depend in part on the quality of the comparative review process. This article examines a case study in Florida to illustrate the utility of empirical evaluations using patient choice models. I estimate such models to show how patients would respond to a change in hospital choices. By simulating the welfare effects of the proposed hospitals, I can further predict how prices of hospital care differ by applicant. Results suggest that empirical analysis using data on patient choice of hospitals may better inform the review process. At the same time, however, it may not give a unique ranking without additional analysis of the fixed costs of proposed services in the context of existing marketwide capacity.     

Quality improvement programs: Tools for international competitive advantage

There is growing concern about the long-run success of U.S. industries in the face of increasing foreign competition. Product quality is a strategic business issue. In an effort to gain competitive advantage, some firms are implementing organization-wide quality training programs. Many firms have still to recognize the benefits of a quality orientation, however. This article examines how quality programs are implemented in organizations. It considers factors leading to success in developing a quality orientation and compares the Japanese and American approaches. © 1992 John Wiley & Sons, Inc.     

Incorporating choice dynamics in models of consumer behavior

This paper presents a framework for organizing and discussing factors influencing consumer choice dynamics, how these factors may be incorporated into models of buyer behavior and problems that may arise in estimating such models. The paper identifies research issues and delineates possible approaches. Proceedings of Session on Choice Dynamics at the Banff Symposium on Consumer Decision-Making and Choice Behavior. All authors share equally in content and remaining errors.     

Relative Effects of IFRS Adoption and IFRS Convergence on Financial Statement Comparability

One of the primary objectives of both adoption of IFRS and convergence between IFRS and U.S. GAAP is to increase financial statement comparability. Using a unique setting in Germany, we compare the effectiveness of these two approaches in achieving this desired outcome. Our empirical tests show that both adoption and convergence lead to an increase in comparability after the new enforcement regulation in 2005. However, difference‐in‐differences tests show that adoption does not lead to a significant incremental increase in comparability beyond convergence. The findings of this study should be of interest to regulators and standard setters as they assess alternative methods of aligning domestic standards with IFRS.     

Does “skin in the game” reduce risk taking? Leverage,liability and the long-run consequences of new deal banking reforms

This essay examines how the Banking Acts of the 1933 and 1935 and related New Deal legislation influenced risk taking in the financial sector of the U.S. economy. The analysis focuses on contingent liability of bank owners for losses incurred by their firms and how the elimination of this liability influenced leverage and lending by commercial banks. Using a new panel data set, we find contingent liability reduced risk taking. In states with contingent liability, banks used less leverage and converted each dollar of capital into fewer loans, and thus could survive larger loan losses (as a fraction of their portfolio) than banks in limited liability states. In states with limited liability, banks took on more leverage and risk, particularly in states that required banks with limited liability to join the Federal Deposit Insurance Corporation. In the long run, the New Deal replaced a regime of contingent liability with deposit insurance, stricter balance sheet regulation, and increased capital requirements, shifting the onus of risk management from bankers to state and federal regulators.