Knowledge flows within multinational corporations

Pursuing a nodal (i.e., subsidiary) level of analysis, this paper advances and tests an overarching theoretical framework pertaining to intracorporate knowledge transfers within multinational corporations (MNCs). We predicted that (i) knowledge outflows from a subsidiary would be positively associated with value of the subsidiary’s knowledge stock, its motivational disposition to share knowledge, and the richness of transmission channels; and (ii) knowledge inflows into a subsidiary would be positively associated with richness of transmission channels, motivational disposition to acquire knowledge, and the capacity to absorb the incoming knowledge. These predictions were tested empirically with data from 374 subsidiaries within 75 MNCs headquartered in the U.S., Europe, and Japan. Except for our predictions regarding the impact of source unit's motivational disposition on knowledge outflows, the data provide either full or partial support to all of the other elements of our theoretical framework. Copyright © 2000 John Wiley & Sons, Ltd.     

The long-term performance of acquiring firms: A re-examination of an anomaly

In this paper, we investigate the long-term stock return performance of Canadian acquiring firms in the post-event period by using 1300 M&A events in the 1993–2002 period. We use both event-time and calendar-time approaches and conduct robustness tests for benchmarks, methodological choices, statistical techniques and other related factors such as payment methods. We also assess the role of governance variables. Contrary to stylized facts reported in US studies, neither do we find negative abnormal long-term abnormal stock market returns once we account for methodological discrepancies nor do we find negative long-term operating performance in the post-acquisition periods for the acquirer following an acquisition event. We also find that the Canadian market reacts positively to acquisition announcements but corrects for this reaction within a short period of time. Overall we find that Canadian acquisitions do not show value destruction or overpayment.     

Celebrity endorsement: How celebrity–brand–user personality congruence affects brand attitude and purchase intention

The present study provides and tests a conceptual framework aimed at comparing the relative effectiveness of celebrity–user, brand–celebrity, and user–brand personality congruence on brand attitude and brand purchase intention (BPI) thereafter. The data collection was done via an online survey of a representative group of consumers (n = 431) located across India. Hypotheses were tested using regression analysis with mediation approach. The results indicate that while user–brand and brand–celebrity personality congruence have a significant impact on brand attitude and purchase intention, celebrity–user congruence does not. Further, brand attitude is found to be a partial mediator on the relationship between the pair-wise personality congruence on BPI. The findings have major implications for marketers in understanding the significance of personality congruence among celebrity–brand–user in the formation of brand attitude and purchase intention that can be used in positioning and in increasing the advertising effectiveness of brands using celebrity endorsement. The present study is a pioneer in contributing to the celebrity endorsement literature by investigating the relative impact of three pairs of personality congruence: celebrity–brand, brand–user, and celebrity–user, on brand attitude and BPI, thereby supporting the applicability of McCracken's Meaning Transfer Model [McCracken (1989), The Journal of Consumer Research, 16 (3) 310–321) and the Hierarchy-of-effects model (Lavidge and Steiner (1961), Journal of Marketing, 25 (6) 59–62].     

Bond pricing with a surface of zero coupon yields

We present a new method for consistent cross‐sectional pricing of all traded bonds in the fixed income market. By applying thin plate regression splines ( Wood, 2003 ) to bootstrapped zero coupon bond yields ( Hagan and West, 2006 ), the method decomposes traded yields into a risk‐free component plus premia for credit and liquidity risks, where the decomposition is consistent with the market valuations and underlying cash flows of the bonds. We apply the framework to end of quarter yield data from 2008 to 2011 on Australian dollar denominated semi‐government, supranational and agency (SSA) bonds, and find that the surface provides an excellent fit to the underlying zero coupon yield curves. Further, the decomposition of selected yield time series and cross‐sections demonstrates how credit premia increased for Australian SSA bonds through the Global Financial Crisis (GFC), but were counterbalanced by liquidity discounts as investors sought safe haven securities.     

Injuries,inequalities and health in Europe

Injuries account for a significant burden of mortality, morbidity, disability and health care costs. They differentially affect age and sex groups and reveal massive inequalities in occurrence within and between countries in Europe. Within countries, the poor suffer most and have least ability to change their exposures to risk. Addressing inequalities in injury occurrence would play a valuable role in reducing the differential burden of ill-health between rich and poor. Despite the evidence for many effective injury-related interventions, limited attention has been devoted to addressing injuries as a public health priority. This paper questions why attention has been limited to date and suggests policy action to support injuries being addressed as a mainstream concern by national and international health policy-makers. The paper briefly highlights the public health burden of injuries and violence; illustrates the range of inequalities that characterise their occurrence; highlights the scope for public health action and considers the extent to which policies that reduce the overall burden of injuries may also reduce inequalities in their occurrence; and finally examines why there has been a limited policy response to date and suggests ways of advancing the agenda.     

OPTIMAL CONSUMPTION AND PORTFOLIO DECISIONS WITH PARTIALLY OBSERVED REAL PRICES

We consider optimal consumption and portfolio investment problems of an investor who is interested in maximizing his utilities from consumption and terminal wealth subject to a random inflation in the consumption basket price over time. We consider two cases: (i) when the investor observes the basket price and (ii) when he receives only noisy observations on the basket price. We derive the optimal policies and show that a modified Mutual Fund Theorem consisting of three funds holds in both cases. The compositions of the funds in the two cases are the same, but in general the investor's allocations of his wealth into these funds will differ. However, in the particular case when the investor has constant relative risk-aversion (CRRA) utility, his optimal investment allocations into these funds are also the same in both cases.     

Airline mergers and multimarket contact

This paper examines changes in the pricing behavior of airline firms around mergers that occurred during 1985–8. We find that the changes in concentration, a measure of contact within a market, and changes in multimarket contact, a measure of contact with the same firms outside of that market, significantly affect airfares. Further, increases in multimarket contact alone are sufficient to effect an increase in fares. Antitrust policy must consider changes not only in concentration but also in multimarket contact to evaluate more fully the effect of consolidations on consumers.     

Keep it,shave it,cut it: A closer look into consumers’ video viewing behavior

The convergence of communications, information, entertainment, commerce, and computing—combined with a rising number of new services—has caused changes in the way people access and consume media. In recent months, the phenomenon of viewing audiences shifting wholly or partially from cable TV providers to over-the-top (OTT) media, also known as cord cutting or cord shaving respectively, has gained much attention. Despite anecdotal evidence of cord cutting and cord shaving presented in the trade press and industry conferences, there has been little rigorous examination of the true effect that cord cutting or cord shaving may have on TV networks and the media industry at large. In this article, we use behavioral data from a leading cable operator in the U.S. to identify and describe the key viewer segments. We also conduct simulations to examine the effects and implications of cord cutting and cord shaving from a customer lifetime value perspective for content providers, content distributors, and advertisers.     

Vulnerable consumer engagement: How corporate social media can facilitate the replenishment of depleted resources

Technology may facilitate health and wellbeing consumer engagement. When there is scant public health provision and socio-cultural norms marginalize consumers stigmatized from cancer, we reveal how a brand’s corporate social media campaign can support vulnerable consumers with resource constraints. Drawing from a transformative consumer research lens, we investigate five years of computer-mediated communications facilitated by the Indian brand Dabur Vatika. Through a grounded theory and an abductive reasoning approach, we unveil how vulnerable consumers directly or indirectly affected by cancer leverage brand's social media to replenish resources. First, we identify how vulnerable consumers engage to replenish depleted emotional and social support resources. We further expand consumer engagement scholarship by offering a preliminary definition of “vulnerable consumer engagement”. Second, we provide a nascent classification of vulnerable consumers in a consumer-producer role, Principal Vulnerable Consumers and Associate Vulnerable Consumers, distinguished by their proximity to the vulnerable context. Lastly, we reveal how brands may perform a transformative role, to replenish social, emotional and operant resources at the micro level through the engagement of vulnerable consumers with corporate social media. This insight is informative for policymakers, advertising practitioners and transformative consumer research academics.     

Information exchange in cartels

Antitrust authorities view the exchange of information among firms regarding costs, prices, or sales as anticompetitive. Such exchanges allow competitors to closely monitor each other, thereby facilitating collusion. But the exchange of aggregate information, perhaps via a third party, is legal. The logic is that collusion is difficult if the identity of a price-cutting firm cannot be ascertained. Here, we examine this logic using Stigler's model of secret price cuts. We first identify circumstances such that when no information exchange is possible, collusion is difficult. We then show that if firms' aggregate sales are made public, nearly perfect collusion is possible.