The impact of retail format diversification on retailers’ financial performance

For retailers, format portfolio management is a core marketing operation, but has received little attention in the marketing literature. This study analyzes the relationship between format diversification and retailer performance in a global setting, where retailers as part of their geographic expansion process often employ format diversification. The dual strategies of geographic diversification and format diversification substantially complicate the diversification-performance relationship. Using a six year panel data set for leading global retailers, we find a positive impact for geographic diversification, a negative impact for format diversification and a negative interaction for the dual strategies, supporting a single focus diversification strategy. We further show the consistency of our findings using a series of model robustness checks.     

Dynamic Dependence Between Liquidity and the S&P 500 Index Futures‐Cash Basis

Roll, Schwartz, and Subrahmanyam (2007) investigate the linear relationship between stock market liquidity and index futures‐cash basis. We extend their work and examine nonlinear relationship between the two variables of interests, in particular, tail dependence. We find that the tail dependence is asymmetric and varies significantly over times. The lower tail dependence between changes in (il) liquidity measured by bid–ask spread of S&P 500 index and changes in absolute value of S&P 500 index futures‐cash basis is almost zero and the upper tail dependence is positive and significantly different from zero. The results suggest that an increase in liquidity is not always associated with a decrease in basis. However, a reduction in liquidity is significantly associated with an increase in basis. At the extreme situation, the link between changes in basis and changes in liquidity can break down. Arbitrage profits cannot be realized and hedging becomes less effective. © 2012 Wiley Periodicals, Inc. Jrl Fut Mark 33:327‐342, 2013     

Harsh voices,sound branding: How voiced consonants in a brand's name can alter its perceived attributes

This paper examines the sound-symbolic link between voiced obstruents (speech sounds created by obstructing the airflow) present in a brand name and the perceived product/brand attributes. In three studies (two using self-reported measures and one using an implicit reaction time paradigm), we tested the effect of voiced (b, d, g, z, v) versus voiceless obstruents (p, t, k, s, f) across 25 hypothetical brand names, on the perceived product attributes of harshness (vs. softness). Brand names with voiced (vs. voiceless) obstruents are perceived as harsh (vs. soft/mild). Results are described across two different product categories (e.g., toilet cleaner and skin conditioner), and also within the same product category (e.g., strong vs. light beer and strong vs. mild toilet cleaner). Since sound symbolism is culturally agnostic, brands expanding into international and linguistically different markets can use these insights to create brand names that will have international appeal, and can match the product and/or brand attributes that brands wish to convey to consumers.     

Is Malaysia exempted from the impossible trinity? An empirical analysis for an emerging market

This paper estimates offset and sterilization coefficients in Malaysia with the objective to assess the relevance of the Impossible Trinity for policy. The paper finds that Malaysia had scope for independent monetary policy in the short run; but in the longer run only under managed floating or capital controls. The loss of long-run monetary autonomy under peg/open capital was in line with the trinity, and may be one reason the peg was eventually abandoned for managed floating in year 2005. The results suggest that managed floating with sterilizations could be a viable monetary strategy for emerging markets facing volatile capital flows.     

Fear and the Fama‐French Factors

Investors’ expectations of market volatility, captured by the VIX (the Chicago Board Options Exchange's volatility index, also known as the “investor fear gauge”), affects the expected returns of US equities. Changes in the VIX drive variations in the expected returns of the factors included in the Fama and French three‐factor model augmented with a momentum factor. The market risk premium (R_m– R_f) and the value premium (HML) are especially sensitive to changes in the VIX. An increase in expected volatility is associated with flights to quality and increases in estimated required returns.     

Which Method Should the Central Bank Choose to Estimate the Model Economy? A Korean Monetary Policy Example

Abstract

To understand how the macro economy evolves, the central bank has two options in choosing how to estimate the economic model against actual data: one is to estimate each sector of the model piece-by-piece, and the other is to estimate the whole model altogether. This paper demonstrates the advantage for the central bank of estimating the whole model in terms of the estimation accuracy and the robustness of the resulting policy recommendations. For that aim, we construct a macro model for the monetary policy analysis of the Korean economy and estimate the model via the system approach and single-equation approach. We evaluate the data fits of the two estimation results and show that the fit of the system approach is far better than the other and comparable to other methods such as vector autoregressions. It is also shown that, if the two estimated models are equally likely, conducting the policy tailored for the model estimated by the system approach delivers better stabilization results for the Korean economy.     

China's Free Trade Agreements Unlocking the "Hidden" Cost Savings

The China price is reshaping how and where products are manufactured in today’s global economy．With China’s abundant workforce and Iow cost structure,products with the Made in China IabeI can be produced for a fraction of the costs incurred in other countries．GIobaI consumers have come to expect lower prices as a result．     

Small intestinal phytobezoars: Sonographic detection

Three cases of small intestinal phytobezoar, suggested by sonography and later confirmed at surgery, are reported. Sonographic findings of bezoar were intraluminal mass presenting as an arclike surface echo casting clear posterior acoustic shadow within the lumen of the dilated small bowel. Compression of the mass with a transducer induced fluid shift around the mass. We propose that diagnosis of bezoars can be suggested on the basis of sonographic findings.     

Guest editorial: Female and ethnic minority entrepreneurship

There has been an increasing level of interest in diversity in small business enterprises. This diversity has been largely focused on female and ethnic minority entrepreneurs. Although there is evidence that female entrepreneurship can have a positive impact on economic prosperity, levels of earnings remain low. The articles in this special issue further our understanding of female and minority entrepreneurs. They examine important topics such as the differences between male and female entrepreneurs in terms of confidence, growth expectations, entrepreneurial orientation and social capital, developing management skills in female entrepreneurs, their management competencies and refugee entrepreneurship.