Can Island Provide Liquidity and Price Discovery in the Dark?

On September 23, 2002, facing a regulatory mandate issued by the Securities and Exchange Commission, Island teminated the position of the Nasdaq 100 Index Tracking Stock (QQQ) on its book. While the market volume remained almost the same, Island's market share in the QQQ fell significantly. However, Island still dominates other trading centers in the price discovery process and volatility spillovers. The spreads on most trading centers became narrower after Island removed its quotes from the public view. The overall results suggest that the decrease in market transparency does not compromise market liquidity. Informed traders who provide price discovery in the QQQ are willing to sacrifice potential price improvements for the fast speed and reliable execution that Island offers, and are able to trade in the absence of displayed quotes.     

Transformational leadership and job performance: A social identity perspective

Drawing on social identity theory, this study provides a model explaining the underlying process through which transformational leadership influences creative behavior and organizational citizenship behaviors. Individual differentiation and group identification are proposed as social identity mechanisms reflecting the characteristics of personal and collective identity orientations that underpin the differential effects of transformational leadership behaviors on performance outcomes. The model is tested with data from a sample of 250 front-line employees and their immediate managers working in five banks in the People's Republic of China. Results of hierarchical linear modeling provide support for the model whereby group-focused and individual-focused transformational leadership behaviors exert differential impacts on individual differentiation and group identification. Furthermore, individual differentiation mediates the relationship between individual-focused transformational leadership and creative behavior, whereas group identification mediates the relationships between group-focused transformational leadership and OCBs toward individuals and groups. Implications for theory and practice are discussed and future research directions are outlined.     

The Seminal Concept of Fast Expanding Markets

The circular pathway, also called the “cradle-to-cradle” model, is more than just recycling and environmental concerns. It is about a new way of thinking how we could grow without resorting to just expending resources. Its rapid expansion, as a new norm for companies, has characteristics of a Fast Expanding Market, given its exponential growth. In this article, we examine how the circular model is pushing companies and entities to come up with disruptive technology and business models that are based on longevity, renewability, reuse, repair, upgrade, refurbishment, servitization, capacity sharing and dematerialization. © 2015 Wiley Periodicals, Inc.     

What Europe Needs Is an Innovation‐Driven Entrepreneurship Ecosystem: Introducing EDIE

With entrepreneurial and innovation ecosystems appearing in geographic pockets around the world in diverse places and pockets of growth, the call for an entrepreneur‐driven innovation ecosystem (EDIE) in Europe is long overdue. Change remains a constant, and traditional industries and mature markets in Europe have left a vacuum in the path to economic growth. The need for a new model is immediate. If Europe is to find itself providing competitive leadership in the global business environment, a new philosophy is necessary to move forward in the twenty‐first century. This is the thinking behind the imperative for an EDIE in Europe, which is presented in this article as a result of a long established effort to awaken a European response to an increasingly contracting environment. © 2015 Wiley Periodicals, Inc.     

Does Tourism Change Our Lives?

Does tourism change our lives? The mainstream of tourism psychology research is mostly concerned with tourist motivation, behavior in and satisfaction with destination, and few studies explore how tourism might affect people's perceptions of themselves, home, neighborhood, work, friends, relatives, and life in general. This study seeks insights into the effect and influence of travel and tourism on people, not momentary impact during vacation but longer-term impact in terms of sense of being, direction in life, and well-being. It is found that there are positive changes in the perception of life among Chinese travelers in general and the perception changes among travelers are significantly stronger than the perception changes among the control group of non-travelers. There is clear evidence that travelers feel more positive than non-travelers in their general well-being, attitude toward life, sense of control, and outlook.     

When does FDI matter? The roles of local institutions and ethnic origins of FDI

How foreign direct investment (FDI) affects a host environment is a much discussed yet less understood topic of salience for international business managers, policy makers and researchers. Using panel data from 287 Chinese cities over the period 1999–2005, our study assesses (1) the multiple impacts of FDI in both positive and negative domains, (2) the role of local institutional development in moderating these impacts, and (3) whether the moderating effects of institutions differ depending upon the origins of the incoming investment (ethnic- versus non-ethnic-linked). Our analysis shows that indeed, FDI is a double-edged sword: it enhances the host city's economic growth, labor productivity and innovation but it also causes employment reduction and pollution in host cities. Moreover, the host city's institutional development is found to enhance the positive impacts of FDI and reduce its negative ones. Interestingly, the moderating effect is smaller for ethnic-linked FDI than for non-ethnic-linked FDI. As the first comprehensive attempt to unravel the role of institutional development in moderating the ambiguous impacts of FDI in multiple domains, this study confirms that a host's ability to absorb the benefits of FDI while curtailing its associated costs is both plausible and pivotal. As our world becomes flatter and FDI more entrenched in a host's economic and social development, this study provides important implications.     

Increasing Wealth and Increasing Instability: The Role of Collateral

In development economics, growth in credit is generally associated with faster long-run growth as financial intermediation improves the efficiency of channeling capital to productive investment. Yet, among developing countries high growth in credit almost always guarantees the outbreak of a financial crisis. The authors attempt to reconcile the two seemingly contradictory facts with an endogenous growth model in which entry to international borrowing entails some significant fixed cost. The poorest countries are excluded from international borrowing because of the fixed cost. The higher-income developing countries will find it optimal to sink the fixed cost to borrow internationally, growing faster as a result, but also become prone to fluctuations arising from shocks to the international financial market.     

Holy mad cow! Facts or (mis)perceptions: A clinical study

The May 20, 2003, announcement confirming diagnosis in a Canadian cow of mad cow disease caused price disturbances in livestock, grain, and stock markets. Price and time data are used to provide a clinical study on the timing, persistency, and rationality of those disturbances in different U.S. markets, showing the three types of uncertainty that C. Avery and P. Zemsky (1998) use to identify herd behavior and the resulting mispricing. Markets react at different times, showing an informational cascading pattern. Misperceptions cause futures contract and stock reactions that are unsupported by the facts. Livestock and grain futures markets reactions suggest that people would replace beef with pork. Biogenetic stocks show price disturbances for companies with no relation to screening or treatment for mad cow disease. The market reactions to the December 23, 2003, announcement of the first incidence of mad cow disease in the United States are examined to see whether the markets have learned from the May event. © 2006 Wiley Periodicals, Inc. Jrl Fut Mark 26:315–341, 2006     

Antecedents of novelty seeking: international visitors’ propensity to experiment across Hong Kong's culinary traditions

The factors that influence the scope and range of visitors’ culinary choices were the focus of this study. Responses to a survey composed of 968 departing visitors from Hong Kong who reside in one of 18 countries revealed that culinary experimentation is influenced by four factors. They are in order of importance: national culture; length of stay; age; and repeat visitation. Specifically, respondents from low uncertainty avoidance countries patronized a greater number and diversity of culinary offers when compared to respondents from high uncertainty avoidance countries. In addition, repeat visitors and length of stay were positively correlated with both the number and range of culinary explorations, while first-time visitors and age were negatively correlated. The implications for managers is that visitors of different nationalities travel to destinations with different thresholds of tastes and uncertainty avoidance thresholds, and differences should be anticipated in terms of dining preferences and ranges of culinary experiences.