Ex-dividend price behavior of common stocks

This study examines common stock prices around ex-dividend dates.Such price data usually contain a mixture of observations -some with and some without arbitrageurs and/or dividend capturersactive. Our theory predicts that such mixing will result ina nonlinear relation between percentage price drop and dividendyield - not the commonly assumed linear relation. This predictionand another important prediction of theory are supported empirically.In a variety of tests, marginal price drop is not significantlydifferent from the dividend amount. Thus, over the last severaldecades, one-for-one marginal price drop has been an excellent(average) rule of thumb.     

Strategies to crack well-guarded markets

How can companies break into attractive markets, where incumbents erect many barriers to entry? To answer this question, the authors studied organizations that successfully entered the most profitable industries in the United States between 1990 and 2000. When they dissected the strategies that worked best, one common theme stood out: indirect assault. Smart newcomers don't duplicate existing business models, compete for crowded distribution channels, or go after mainstream customers right away. Instead, they attack the enemy at its weakest points; then gain competitive advantage; and later, if doing so meets their objectives, go after its strongholds. Recent battles in the soft drink industry--where brands, bottling and distribution capabilities, and shelf space are incumbents' main advantages--are a case in point. When Virgin Drinks entered the U.S. cola market in 1998, it advertised heavily and immediately tried to get into the retail outlets that stock the leading brands. Virgin has never garnered more than a 1% share of the market. Red Bull, by contrast, came on the scene in 1997 with a niche product: a carbonated energy drink. The company started by selling the drink at bars and nightclubs. After gaining a loyal following through these outlets, Red Bull elbowed its way into the corner store. In 2005 it enjoyed a 65% share of the $650 million energy drink market. Successful entrants use three basic approaches in their indirect attacks. They leverage their existing assets and resources, reconfigure their value chains, and create niches. These approaches may appear to be simple, but their magic lies in their combination. By mixing and matching them, Bryce and Dyer say, enterprises can defy half a century of economic logic and make money entering highly profitable industries. The authors use Skype, Costco, Skechers, and many other companies to illustrate their argument.     

The Impact of Firm Capabilities and Competitive Advantages on Import Intermediary Performance

ABSTRACT

Import intermediary firms, domestic firms that serve U.S. industries by linking domestic wholesalers/retailers and foreign distributors/manufacturers, handled a whopping U.S. $1.85 trillion of commodity good imports in 2006. This study focused on these important firms by assessing the role of capabilities and competitive advantages as key determinants of import intermediary performance. The empirical results showed that market interpretation, sourcing, and service capabilities, overall, positively affected cost, product, and service competitive advantages. These competitive advantages, in turn, positively affected their relationship performance with business partners. Results, however, also indicated some interesting negative associations among sourcing capabilities, service advantages, and relationship performance with foreign partners, raising questions about extant firm performance theory.     

Constitutional Confusion: Slavery,Abortion, and Substantive Constitutional Analysis

A comparison of two U.S. Supreme Court cases about fundamental rights, one on slavery, the other on abortion, sheds light on constitutional law and the principles undergirding liberal constitutional democracy. The Dred Scott case in 1857 denied constitutional rights to enslaved Africans and their descendants living in the United States. The Roe v. Wade decision in 1973 created a constitutional right to abortion that denied constitutional personhood to human beings prior to birth. Both cases involved applications of what legal scholars call “substantive due process”—that is, a substantive interpretation of the constitutional requirement that governments provide persons with “due process of law” that moves beyond procedural formalism. Although many constitutional scholars deny the legitimacy of substantive due process as a legal doctrine, this article proposes that the judicial system cannot ultimately avoid substantive moral questions in constitutional interpretation. In both cases examined here, the crucial question was about who counts as part of the people whom the Constitution protects, and that question could not be answered in purely formal terms. Both Dred Scott and Roe v. Wade erred not by engaging substantive moral questions but rather by denying, in different ways, the natural rights of human persons.     

Ecotourism and conservation: factors influencing effective conservation messages

Environmental education and interpretation have largely focused on individual mechanisms (e.g. cognitive processes) leading to intention and behavioural change. Less has been said about the role of the situation and communication processes between tour guides and tourists in ecotourism experiences. This paper examines the role of interpreters and individuals as jointly influencing the effectiveness of communicating conservation messages. A survey of over 1500 visitors was undertaken to ascertain the factors crucial to whether visitors received a conservation message in an ecotourism setting. The results indicate a three-tier effect: individual characteristics, specifically respondent's age, were initially important. The second tier represents the impact of conservation-related information from the tour guide/interpreter. This information acts as a stimulus to the third and most crucial tier of influence – visitor empowerment. The tertiary stage comprises a two-way communication process that influences a positive conservation message. The process involves the interpreter suggesting positive conservation action that translates into what we term “a locus of responsibility” for the visitor and subsequent higher levels of satisfaction. All of these drive effective communication of conservation message comprehension.     

Human capital and learning as a source of sustainable competitive advantage

This paper seeks to identify the sources of wide and persistent variations in learning performance in the semiconductor manufacturing industry. In the resource‐based view of the firm, human capital is frequently assumed to contribute to competitive advantage due to its inimitability based on its intangible, firm‐specific, and socially complex nature. Consistent with this view, we find that investments in firm‐specific human capital have a significant impact on learning and firm performance. More specifically, human capital selection (education requirements and screening), development through training, and deployment significantly improve learning by doing, which in turn improves performance. However, we find that acquiring human capital with prior industry experience from external sources significantly reduces learning performance. We also find that firms with high turnover significantly underperform their rivals, revealing the time‐compression diseconomies that protect firm‐specific human capital from imitation. These results provide new empirical evidence of the inimitability of human capital. Copyright © 2004 John Wiley & Sons, Ltd.     

An integrated design for personal computers in the marketing curriculum

This article discusses the role of personal computer applications in courses throughout the marketing curriculum. Learning theory suggests that PC applications be introduced in modules over the entire marketing program and not concentrated in just one or two courses. The final capstone course in marketing is seen as the logical place for a culminating, integrative learning experience with software applications. Software recommendations are provided for each typical marketing course and a decision support exercise is described for the capstone course.