Mena Stock Markets Integration: Pre and Post Global Financial Crisis

This paper examines the short‐ and long‐run linkages in pre and post global financial crisis among Middle East and North Africa (MENA) stock markets, between MENA and Chinese stock markets and also between MENA and developed (United States and United Kingdom) stock markets. Results indicate that both long‐run co‐integration relationships and short‐run causal linkages among MENA stock markets increased in post‐crisis than that in pre‐crisis sub‐period. The degree of integration between MENA and Chinese stock markets increased in post‐crisis than pre‐crisis. We also find that the degree of integration between MENA and developed (United States and United Kingdom) stock markets increased in post‐crisis than that in pre‐crisis. The presence of increased linkages among MENA markets, and between MENA and Chinese stock markets and also between MENA and developed (United States and United Kingdom) markets has important implications for portfolio investors and policy makers.     

Preemptive bribery and incomplete information: Does prior knowledge matter?

This paper studies bribery between a firm and a supervisor who monitors the firm for regulatory compliance. Bribery occurs preemptively, that is before the supervisor exerts costly effort to discover the firm's level of noncompliance and collect evidence for successful prosecution. In contrast to previous papers, preemptive bribery is modeled as a Bayesian signaling game because the supervisor is uninformed about the firm's level of noncompliance. We show that under normal informational assumptions, some (possibly all) firms always engage in preemptive bribery. However, if knowledge of the firm's level of noncompliance has implications for the supervisor's ability to collect evidence and prosecute (prior knowledge), preemptive bribery can be completely eliminated. Results which apply to preemptive bribery under complete information do not apply here.     

Response to social media influencers: Consumer dispositions as drivers

Brand managers use social media influencers (SMIs) to influence consumers' attitudes and intentions. However, there is still ambiguity about the mechanisms by which SMIs influence their followers, as well as the metrics by which their performance can be evaluated. The existing literature has restricted itself to consumers' purchase intentions in order to evaluate SMIs influence and is silent on the role of the consumers' individual characteristics in SMIs influence mechanisms. Based on these research gaps and to provide a clearer picture of the SMI influence mechanism to practitioners, the present study assesses the role of consumer characteristics such as their social media attachment (SMA), parasocial relationships with social media influencer (PSR-SMIs), and susceptibility to SMIs influence (SSMII) in driving consumer response to SMIs influence through SMI compliance intentions. Study 1 found the sequential mediational role of PSR-SMIs and SSMII in the SMA-SMI compliance intentions relationship. Study 2 found the same sequential mediation and demonstrated how SMI skepticism negatively moderates the relationship between PSR-SMIs and SMI compliance intentions. To the best of the authors' knowledge, this is the first time that this skepticism variable is being explored in the SMI literature.     

Do farm operators benefit from direct to consumer marketing strategies?

Using farm‐level data this study investigates factors associated with the choice of three direct marketing strategies (DMSs). Particular attention is given to the role of management and marketing skills in selection of DMSs. Additionally, the study applies a selectivity‐based approach for the multinomial logit model to assess the relationship between DMSs and the financial performance of the business. Results suggest that both management and marketing skills significantly affect direct‐to‐consumer sales. Farmers choosing the strategy of sales only through direct‐to‐consumer outlets report earnings that are significantly lower than earnings from the other marketing strategies. Marketing skills prove to be beneficial to direct‐to‐consumer (DTC) earnings. Finally, the selectivity correction terms in the direct sales model are significantly negative in the choice of DTC, indicating the presence of sample selection effects. Accounting for selectivity is essential to ensure unbiased and consistent estimates.     

Exploring Brand Personality–Celebrity Endorser Personality Congruence in Celebrity Endorsements in the Indian Context

The objective of the research reported in this paper was to develop and test a model of brand personality–celebrity endorser personality congruence and its impact on consumers’ attitudes and intentions. In particular, the study drew on social adaptation and attribution theories to develop hypotheses related to the impact of this congruence on consumers’ perceptions of endorser credibility and suitability, and the subsequent impact of these perceptions on consumers’ attitudes and intentions. The study was motivated by recent attention being paid to the importance of personality in choosing celebrities for product endorsements and the fact that the brand personality–celebrity endorser personality congruence has not been explored before. The model was tested based on data obtained from a sample of participants in India. Results from path analyses indicated a positive and significant impact of personality‐based congruence on endorser credibility and suitability, which, in turn, positively and significantly impacted ad believability. Ad believability in turn significantly impacted attitude toward the ad, which had a significant impact on brand attitude and purchase intentions. Research and managerial implications are discussed, as are directions for future research.     

Stability of Farm Income and the Role of Nonfarm Income in U.S. Agriculture

This study measures the variability in real net farm income in the U.S. agricultural sector and per farm and determines if variability has diminished over 1933 to 1999. Second, the role of nonfarm income in reducing the variability in total farm household income is examined. Results indicate that the variability in real net farm income in the sector and at the farm level has not diminished and that nonfarm income has helped to reduce the variability in total farm household income.     

Trade Liberalization and Wage Inequality: Evidence from India

We evaluate empirically the impact of the dramatic 1991 trade liberalization in India on the industry wage structure. The empirical strategy uses variation in industry wage premiums and trade policy across industries and over time. In contrast to most earlier studies on developing countries, we find a strong, negative, and robust relationship between changes in trade policy and changes in industry wage premiums over time. The results are consistent with liberalization‐induced productivity increases at the firm level, which get passed on to industry wages. We also find that trade liberalization has led to decreased wage inequality between skilled and unskilled workers in India. This is consistent with the magnitude of tariff reductions being relatively larger in sectors with a higher proportion of unskilled workers.     

Charitable inclination and the chief executive officer's pay package

Using chief executive officers’ (CEOs’) lifetime nonemployment experience in prominent charitable organizations to create a proxy for CEO charitable inclination, I find that charitably inclined CEOs receive a significant pay premium. The pay premium sensitivity to CEO charitable inclination is particularly pronounced for male, external, and specialist CEOs who are employed at firms that are undiversified, larger, less debt reliant, poor performing, facing high product‐market competition, and that keep nonmanipulative financial statements and demonstrate high inclination to social responsibility in the area of diversity, employee relations, and internal governance. This research contributes to the broader debate on labor market pricing of CEO characteristics.