Reexamining momentum profits: Underreaction or overreaction to firm-specific information?

We design a new measure and find that the predictability of past returns on future returns increases as stocks respond with delay to firm-specific information. Our results suggest that momentum is caused by both investors’ underreaction and overreaction to information. However, underreaction to information seems to be the primary cause, particularly during the more recent period. Our findings are robust for recent explanations of momentum profits and alternative methods for computing our measure. We also find that stocks respond with delay to firm-specific information, partly due to certain firm characteristics, and partly because they escape investor attention due to their low visibility. Our paper extends and refines Jegadeesh and Titman’s (J Financ 56(2):699–720, 2001) finding that momentum profits are consistent with behavioral models’ predictions regarding investors’ overreaction.     

Healthcare utilization and costs among relapsed or refractory multiple myeloma patients on carfilzomib or pomalidomide as monotherapy or in combination with dexamethasone

Aim: To compare monthly healthcare resource utilization (HRU) and costs among adult patients with multiple myeloma (MM) receiving second or subsequent line of treatment (LOT) with carfilzomib or pomalidomide as monotherapy or in combination with dexamethasone.

Methods and materials: Adult MM patients who received carfilzomib or pomalidomide as second/subsequent LOT between 2006 and 2014 were selected from the MarketScan databases. LOT was determined using Medical/pharmacy claims using a published algorithm. For each patient, first LOT with carfilzomib or pomalidomide was defined as index LOT. Patients with first LOT as index LOT, who received other chemotherapy in combination with carfilzomib or pomalidomide, or who underwent stem cell transplant (STC) during index LOT were excluded. Monthly HRU and costs during index LOT were compared using inverse probability of treatment weights (IPTW) based on propensity scores for receipt of carfilzomib estimated by logistic regression with LOT, patient demographics, Charlson index, comorbidities, pre-index healthcare cost, and receipt of prior SCT as covariates.

Results: After weighting, baseline characteristics were well balanced among 114 carfilzomib and 144 pomalidomide patients. Mean (95% CI) numbers of outpatient visits per month were 7.1 (5.2–8.0) with carfilzomib and 4.7 (3.9–6.1) with pomalidomide (p?=?0.006). Otherwise, there were no statistically significant differences between the groups in mean monthly HRU and costs or median time to therapy discontinuation. Mean (95% CI) monthly total healthcare costs were $19,776 (15,322–27,748) with pomalidomide and $17,321 (12,412–21,874) with carfilzomib (p?=?0.522).

Limitations: Comparison of carfilzomib vs pomalidomide may be biased if there are unobserved factors not balanced by IPTW. The relatively small sample size limits the power of analyses to detect potential differences between treatment groups.

Conclusions: Monthly HRU and costs are similar among patients with relapse or refractory MM patients receiving carfilzomib or pomalidomide as monotherapy or in combination with dexamethasone.     

Redefining psychological contracts with the U.S. work force: A critical task for strategic human resource management planners in the 1990s

The well-publicized waves of layoffs in recent years have destroyed the long-standing psychological contract between employees and their employers which promised pay, promotion, and job security in exchange for worker skills, effort, and loyalty. This article provides empirical support for the transformational effect layoffs have had on psychological contracts and discusses the critical role human resource management must play in establishing and developing new contracts to guide future employment relationships between employers and employees. Implications for both academics and practitioners are provided. © 1998 John Wiley & Sons, Inc.     

The Influence of CSR and Ethical Self-Identity in Consumer Evaluation of Cobrands

In a multi-source study, we examine how frequent change interacts with ethical leadership to reduce turnover intentions. We argue that ethical leaders enhance employees’ state self-esteem, which explains the moderating effect of ethical leadership. Results from 124 employee-coworker-supervisor triads revealed that ethical leadership moderated the relationship between frequent change and turnover intention such that the relationship was positive only when ethical leadership was low. The moderating relationship could be shown to be mediated by employees’ state self-esteem.     

Customer query handling in sales interactions

Using a novel approach with video-recordings of sales interactions, this study focuses on a dynamic analysis of salesperson effectiveness in handling customer queries. We conceptualize salesperson behaviors, namely, resolving, relating, and emoting, as separate elements of customer query handling and empirically identify the distinct verbal and nonverbal cues that salespeople use to display these behaviors during sales interactions. We draw from compensation effects in social cognition theory to propose that customers’ perceptions of a salesperson’s effectiveness are prone to trade-offs between competence (resolving behaviors) and warmth (relating and emoting behaviors). Results, robust to endogeneity corrections, support the proposed tradeoffs such that the effectiveness of salesperson’s resolving behavior is significantly curtailed, even neutralized, by the salesperson’s relating and emoting behaviors. We situate these counterintuitive results within the extant theory and research on sales interactions, and outline implications for practice.     

What and how to communicate about a corporate brand with the consumers: An exploratory study

The present exploratory study investigates the differential impact of various relevant corporate brand associations on consumers' cognitive (product attitude and purchase intention) and affective responses (affective corporate commitment) in the three sectors, namely durables, services and fast moving consumer goods. The findings reveal that corporate brand associations can be categorised into two categories – universal associations, which are influential in all the sectors, and sector-specific associations, which have a differential effect on consumers in different sectors. Thus, this study reveals that corporate branding is important to consumers in all the sectors, but a single corporate brand story does not work in all the sectors. Further, corporate associations do not always have a positive effect on the consumers; under certain circumstances, these might either have no effect or have a negative effect on the consumers. Finally, there are two routes by which corporate brand associations can influence consumers – by affecting their cognitive responses or by influencing their affective responses towards the company. The recognition of the important corporate brand associations in the three sectors, and the routes (cognitive or affective) through which these associations influence consumer choices would enable marketers to develop more sophisticated corporate communication strategies.     

Flirting with the enemy: online competitor referral and entry-deterrence

Internet retailers often compete fiercely for consumers through expensive marketing efforts like search engine advertising, online coupons and a variety of special deals. Against this background, it is somewhat puzzling that many online retailers have recently begun referring their website visitors to their direct competitors. In this paper, using an analytical model, we examine this counterintuitive practice and posit that an entry deterrence motive can potentially explain this marketplace puzzle. Specifically, we develop a model where two incumbents compete for consumers” business while facing a potential entrant who is deciding whether to enter the market. In addition to setting the price, each incumbent firm could potentially display a referral link to its direct competitor. Our analysis reveals that when confronted with a potential entry, an incumbent may refer consumers to its competitor, intensifying the market competition that could result in shutting off the entrant. Furthermore, we show that when referral efficiency is exogenous, it is possible that in equilibrium only one incumbent refers its customers to competitor (i.e., one-way referral) or both incumbents refer their customers to each other (i.e, two-way referral). When referral efficiency is endogenous, the ex-ante symmetric incumbents may choose asymmetric referral efficiencies ex-post. We extend the model in a number of directions including making the entrant share endogenous and allowing incumbents to be asymmetric. Overall, our results indicate that firms may be motivated by entry deterrence to voluntarily refer consumers to their direct competitors even when they are paid nothing for the referral.     

Cointegration networks in stock markets

We use a novel approach based on a combination of network and cointegration analysis to examine linkages between stock markets across market cycles. Our results show that long-run linkages are likely to be global rather than regional and that market turbulence increases linkages. However, we find no widespread common stochastic trends between markets and neither are we able to draw a conclusion that major financial markets display influences network linkages.     

How pervasive is the effect of culture on stock market linkages? Evidence across regions and economic cycles

We conduct a comprehensive study on the effect of culture on stock market linkages. With data on 25 national stock markets, a quantile regression model is used to estimate the determinants of market linkages using culture variable/s such as language, religion and Hofstede’s cultural dimensions while controlling for distance, economic and legal variables. Further, we test whether these effects hold across regions and if changes are detected during periods of market crisis. We also test if market liquidity, an indicator of market efficiency, diminishes the impact of culture on market linkages. The main conclusion is that culture preferences shape investor choices, which affects integration between stock markets. The equity markets with similar cultural traits tend to increase market linkages; however, we observe differences across regions. Furthermore, liquidity and economic uncertainty fail to have an impact on the significance of culture variable/s as determinants of market linkages.