A Reduced‐Form Model for Warrant Valuation

This paper studies warrant valuation using a reduced‐form model. Analogous to the credit risk literature, structural models require complete information about the asset value process and the firm’s liabilities. In contrast, reduced‐form models require only information about the firm’s stock price process. We introduce a reduced‐form model where the warrant holder is a price taker, and we relate our model to structural models appearing in the literature.     

When do unethical brand perceptions spill over to competitors?

We examine whether the unethical actions of marketplace brands (e.g., the Volkswagen emissions scandal) hurt the ethical perceptions of competing brands (e.g., Ford, BMW). Across two studies, we find evidence for this unethical spillover effect and show that it can negatively affect consumers’ liking and purchase intentions for a competing brand. The results show that the spillover effect (1) only occurs for similar competitors and (2) is moderated by construal level (CL). Specifically, the spillover effect is more likely to occur when consumers focus on the finer details of the unethical brand’s transgression (i.e., low CL) but not when they focus on the bigger picture of the transgression (i.e., high CL). Thus, while it is intuitively appealing to assume that brands may benefit from a competitor’s foible, this research indicates that competitors may be hurt by a similar brand’s wrongdoing.     

GMM with Multiple Missing Variables

We consider efficient estimation in moment conditions models with non‐monotonically missing‐at‐random (MAR) variables. A version of MAR point‐identifies the parameters of interest and gives a closed‐form efficient influence function that can be used directly to obtain efficient semi‐parametric generalized method of moments (GMM) estimators under standard regularity conditions. A small‐scale Monte Carlo experiment with MAR instrumental variables demonstrates that the asymptotic superiority of these estimators over the standard methods carries over to finite samples. An illustrative empirical study of the relationship between a child's years of schooling and number of siblings indicates that these GMM estimators can generate results with substantive differences from standard methods. Copyright © 2015 John Wiley & Sons, Ltd.     

Advanced models of quality function deployment: a literature review

In this paper, a literature review conducted to study the characteristics of advanced models of quality function deployment (QFD) that have appeared in the literature arena is reported. QFD technique emerged in Japan in the 1970s. QFD has been proving to be a powerful tool that can be used for translating the voice of customers into technical languages. Yet from the beginning of this century, researchers began to point out the need to refine, modify and improve the features of QFD technique. In order to fulfil this need, few researchers brought out several advanced models of QFD. While conducting the literature review reported in this paper, six types of such advanced models of QFD were identified in the literature arena and their characteristics were studied. The result of this study revealed that the procedural and computational complexities are least in the case of an advanced model called total quality function deployment (TQFD). TQFD technique replaces the complex computations involved in applying conventional QFD technique with simple ratings. Besides the formation of teams to translate the voice of customers into work instructions ensures the quick reactions to the customers’ desires in the actual field of implementation. In this background, at end of this paper, it is suggested to adopt TQFD for implementation in traditional organizations in which the prevalence of adequate education for adopting complex procedures is found to be least.     

Do watching eyes affect charitable giving? Evidence from a field experiment

The presence of implicit observation cues, such as picture of eyes, has been shown to increase generosity in dictator games, and cooperative behavior in field settings. I combine these approaches, by testing if a picture of watching eyes affects unconditional giving in a natural environment, where the recipient is a charity organization. Taken together, this study reduces the influence of three potential confounding factors in previous experiments: (i) experimenter demand effects, (ii) that the facial cue reminds subjects of a human counterpart, and (iii) a social multiplier effect. Specifically, the paper reports results from an experiment, conducted in a Swedish supermarket chain, where customers face a naturally occurring decision problem. People who recycle cans and bottles have to choose whether to keep the recycled amount or donate it to a charity organization. By posting a picture of human eyes on recycling machines, I am able to test whether this causes an increase in donations to the charity. Based on a sample covering a 12-day period, 38 stores and 16775 individual choices, I find no general effect. However, when controlling for store and day fixed effects, and using a proxy for store attendance, the picture of eyes increased donated amount by 30 percent during days when relatively few other people visited the store. This result gives further support to the conclusion that subtle social cues can invoke reputation concerns in humans, although the relatively small effect suggests that previous estimates could be biased upward, or at least that the influence of observational cues is context dependent.     

Marketing strategy and the efficacy of procedural justice: The mid-level marketing manager in industrial service firms

A principal challenge confronting the senior marketing team in B2B firms is how to ensure that the marketing strategies they develop are implemented effectively. The literature indicates that mid-level marketing managers' perceptions of the procedural justice within the firm may be critical in this respect. However, there has been little empirical research on this issue. The authors develop and test a conceptual model of the key drivers and consequences of marketing managers' procedural justice perceptions. The findings show that if mid-level marketing managers trust their senior marketing colleagues and simultaneously operate within moderately organic structures, then procedural justice will thrive. A consequence of this is more effective implementation of marketing strategy which, in turn, leads to increased market performance.     

Entrepreneurial values,hybridity and entrepreneurial capital: Insights from Johannesburg's informal sector

This study explored entrepreneurial values in Johannesburg's informal sector. Using responses to open-ended questions in a survey of 359 informal traders, the author analysed the way Western and indigenous (African) values mix to form hybrid values. The resulting understanding of hybridity makes it apparent that these traders exhibit both kinds of value in varying forms. In this paper the implications of the emergence of hybrid values, as a form of entrepreneurial capital, are explored using Bourdieu's notion of embodied capital. On this basis it is proposed that hybrid values are of material benefit to traders through conversion into other forms of capital, such as financial capital. More research is required, however, to investigate further how hybrid values translate into material gain in practice.