The Influences of Customer Relationship Metrics on Shareholder Value: What Should Be Done and What Has Been Done?

The contribution of customer relationship (CR) metrics to shareholder value is practically unknown in research and practice. Existing studies report rather ambiguous results. We develop a proposal to identify and measure the multidimensional influences in a valid and reliable way. By comparing existing studies to each other and to our framework, we can find possible reasons for their ambiguity: First, the studies are actually not compatible while using various CR metrics and performance measures. Second, several conceptual and methodological differences also place the comparability of their results in question. The application of our framework should explain the inconsistent outcomes of existing studies and indicate a consistent and general influence of CR metrics on shareholder value.     

FÜR SIE GELESEN

JOURNAL CLUB

FüR SIE GELESEN     

Pitfalls in estimating β-convergence by means of panel data: an empirical test

This article aims to test the conjecture advanced in a recent work by Bianchi and Menegatti (Appl Econ Lett 14:963–967, 2007) that usual β-convergence panel regressions may produce biased evidence, due to their inability to distinguish between actual catching-up across countries and decreasing growth rates over time within countries. The test considers different sub-groups in a dataset of 72 countries for the period 1970–2000 and introduces both human capital and proxies for technological differences into the analysis. The results confirm the conjecture that traditional evidence about β-convergence may be misleading; they also show that catching-up across countries is weaker than usually claimed and that this process occurred only in some sub-groups of countries.     

Strategizing corporate social responsibility: evidence from an Italian medium-sized, family-owned company

Corporate social responsibility (CSR) is becoming a mainstream issue as both researchers and managers are realizing its importance, but knowledge gaps persist. In particular, the processes underlying the adoption of responsible managerial practices and the effects associated with them are still at the centre of intense debate. Not surprisingly, managers expect formalized procedures that might influence corporate managerial processes and especially corporate strategies. Given the growing emphasis on the integration of CSR into corporate strategy, the purpose of this qualitative study is to explore the antecedents of this process and the dynamics underlying it. We focus on a medium-sized, family-owned Italian company, SABAF SpA. We find that: the beliefs and value systems of entrepreneurs play a fundamental role in shaping a sustainable corporate strategy; the importance of the relationship between social performance and financial performance depends to some extent on the kind of competitive strategy that a company has selected; and people need to be aware of it – that is, CSR strategies must be explicit and codified into specific managerial procedures.     

Size,time-varying beta,and conditional heteroscedasticity in UK stock returns

The purpose of this study is to examine the relationship between firm size and time-varying betas of UK stocks. We extend the Schwert and Seguin (1990)(Journal of Finance 45, 1120–1155) methodology by explicitly modeling conditional heteroscedasticity in the market model residual returns. Our results show that the time-varying coefficient is not statistically significant for both small and large firm stock indexes. We also find that accounting for GARCH effects in the Schwert-Seguin market model yields beta estimates that are markedly differently from those when conditional heteroscedasticity is ignored. Event studies that ignore conditional heteroscedasticity may bias the abnormal returns of small and large firms, thereby leading to a different conclusion regarding the significance of an information event.     

Unemployment Insurance and Unemployment: An analysis of the aggregate demand-side effects for postwar Canada

Most of the theoretical and empirical literature on the effects of unemployment insurance (UI) during the last 25 years has focused on the supply-side implications. The object of this article is to argue that much of those discussions over the disincentive effects of UI is misdirected. Our intention is to bring back to the forefront a discussion of the positive macroeconomic role played by UI net injections in stabilizing aggregate demand. Our empirical results using Canadian data for the postwar period support this Keynesian view of the stabilizing effect of UI in contemporary economies.     

Addressing privacy predicaments in the digital marketplace: A power‐relations perspective

The utilization and governance of the internet and adjacent disruptive technologies have created numerous challenges to ensuring consumer online privacy. This study employs the power–responsibility equilibrium theory to explore emerging online privacy issues in the data‐driven marketplace. This exploratory study, based on semi‐structured interviews, explains why online shopping consumers are increasingly worried about their privacy and why they behave in a manner that could be detrimental to the consumer–vendor relationship. The findings suggest that deficiencies of corporate privacy responsibility and regulatory protection have deprived consumers of privacy empowerment. These deficiencies have also accentuated perceived privacy contract violations to trigger privacy concerns and subsequent defensive responses. We identify enhancement of consumer privacy empowerment and assuagement of privacy contract violations as two separate mechanisms of addressing online privacy issues. We also highlight the importance of addressing power and responsibility dynamics for maintaining a healthy information‐exchange environment.     

The Capitalisation of CAP Payments into Land Rental Prices: A Panel Sample Selection Approach

The empirical literature suggests that farmland prices and rents capitalise agricultural subsidies and that the 2003 reform of the EU Common Agricultural Policy, which decoupled subsidies from production and attached them to land, may have increased the extent of the phenomenon. Employing a farm‐level dataset, the Farm Accountancy Data Network (FADN) for Italy, we investigate this issue while accounting for selectivity, endogeneity and unobserved individual heterogeneity. To understand the impact of the reform we compare the estimates of capitalisation rate for decoupled payments with those for coupled payments. After correcting for unobserved individual heterogeneity and selectivity, our results reveal no capitalisation of coupled payments and only limited capitalisation of decoupled area payments into farmland rents in Italy.     

Conceptualizing data‐deliberation: The starry sky beetle,environmental system risk,and Habermasian CSR in the digital age

Building on an illustrative case of a systemic environmental threat and its multi‐stakeholder response, this paper draws attention to the changing political impacts of corporations in the digital age. Political Corporate Social Responsibility (PCSR) theory suggests an expanded sense of politics and corporations, including impacts that may range from voluntary initiatives to overcome governance gaps, to avoiding state regulation via corporate political activity. Considering digitalization as a stimulus, we explore potential responsibilities of corporations toward public goods in contexts with functioning governments. We show that digitalization—in the form of transparency, surveillance, and data‐sharing—offers corporations’ scope for deliberative public participation. The starry sky beetle infestation endangering public and private goods is thereby used to illustrate the possibility of expanding the political role of corporations in the digital sphere. We offer a contribution by conceptualizing data‐deliberation as a Habermasian variation of PCSR, defined as the (a) voluntary disclosure of corporate data and its transparent, open sharing with the public sector (b) along with the cooperation with governmental institutions on data analytics methods for examining large‐scale datasets (c) thereby complying with existing national and international regulations on data protection, in particular with respect to privacy and personal data.     

The skill profile of the employees and the provision of flexible working hours in the workplace: a multilevel analysis across European countries

This article investigates the relationship between the skill profile of the employees (i.e. the percentage of employees in highly skilled jobs) and the provision of flexible working hours in the workplace (i.e. the proportion of employees entitled to adapt, within certain limits, the time when they begin or finish their daily work according to their personal needs or wishes). Analyses draw on the 2009 European Company Survey, conducted on a representative sample (N = 26,640) of European establishments in 29 countries. Multilevel mixed‐effects linear regressions are used to study to what extent both workplace‐level and national‐level variables affect this relationship. Findings suggest a strong, positive and non‐linear relationship between the variables under scrutiny, which is moderated, at national level, by both unemployment and trade union density rates.