The Corporate Governance Premium,Returns, and Mutual Funds

Mutual funds with a preference for strong corporate governance (CG) have performance similar to mutual funds with a preference for weak CG. We find a direct relation between overall mutual fund CG preference and the corporate governance premium (CGP). Furthermore, the investment preferences of mutual funds forecast the change in the CGP. We provide evidence that the investment activities of institutional investors can affect stock performance, and that shifts by institutional investors in CG preference impact the appearance of the CGP.     

Correlates of Narrow Bracketing

Behavior often deviates from standard predictions because individuals evaluate the consequences of choices separately (i.e., narrow bracketing) rather than jointly. The main existing theories classify different narrow bracketing phenomena as either (i) choice errors caused by cognitive limitations, or (ii) strategies to achieve self‐control. Using an online experiment, we find consistent evidence for theory (ii): mental budgets and narrow goals are related to each other and to measures of self‐control, but are distinct from other forms of narrow bracketing. Evidence for the complementary theory (i) is less consistent: few choice bracketing phenomena are related to each other and to cognitive skills.     

Representatives of future generations as promoters of sustainability in corporate decision processes

Current protests of the young generation emphasize that interests of future generations should be taken more into account by policy makers and in corporate decision processes. As organizations contribute to enduring environmental and social problems, they are required to promote sustainability in order to preserve options for the well-being of future generations. However, organizational decision makers often take a short-term perspective and neglect investments in intergenerational justice. Previous theoretical work has acknowledged the importance of representing future generations in today's decision-making processes to adopt a long-term perspective in order to promote intergenerational justice. In a laboratory experiment, we show that appointing representatives of future generations at the organizational level can foster investments in intergenerational justice. Although this outcome is more pronounced when aligned with the representatives' individual incentives, it even persists for a representative who is monetarily penalized for advocating the interests of future generations.     

Socio-emotional wealth and corporate responses to environmental hostility: Are family firms more stakeholder oriented?

Do family firms care more for different stakeholders than nonfamily firms when operating in a hostile business environment? This study addresses this question and fills the existing void in family business research. It shows that family-controlled firms adopt corporate social responsibility strategies and balance the demands of internal and external interest groups to preserve their socio-emotional wealth while facing fierce competition, resource scarcity, and penurious economic conditions. More specifically, our analysis of an international sample of 956 listed firms from 2006 to 2014 reveals that family firms show a higher level of corporate social responsibility (CSR) performance and better stakeholder orientation than nonfamily firms. Our findings are useful for managers, policymakers, and responsible investors.     

What satisfies younger versus older employees,and why? An aging perspective on equity theory to explain interactive effects of employee age,monetary rewards,and task contributions on job satisfaction

In light of increasingly age-diverse workforces, organizations face the challenge of fostering job satisfaction among both younger and older employees. Combining equity theory with an aging perspective, we propose that due to age-related shifts in motives and goals, younger versus older employees’ job satisfaction will depend differently on monetary rewards (outcome side of equity theory), task contributions (input side of equity theory), as well as on imbalances (inequity) in the relationship between monetary rewards and task contributions. In a multisource study with 166 managers, we found that while younger employees were satisfied primarily by monetary rewards, older employees were satisfied primarily by their task contributions. Most importantly, a three-way interaction indicated that younger versus older employees react differently to two types of inequity: Being proportionally over-rewarded (i.e., receiving high monetary rewards for low task contributions) reduced older (but not of younger) employees’ job satisfaction. By contrast, under-reward inequity (i.e., receiving low monetary rewards for high task contributions) decreased younger (but not of older) employees’ job satisfaction. These age-dependent effects of job features on job satisfaction reveal important theoretical as well as practical implications.     

Fledgling firms offer hope on health costs

Julia Adler-Milstein and Ashish Jha Regional health information organizations--RHIOs--are springing up in the United States to meet a vital need: to connect the nation's disparate patient-health information systems. If RHIOs can find a viable business model, they stand to improve the quality and decrease the cost of U.S. health care dramatically.     

Extreme Uncertainty and Forward‐looking Disclosure Properties

This study investigates the effect of extreme uncertainty on disclosure behaviour by analyzing the quality and quantity of forward‐looking disclosures during the global financial crisis and pre‐crisis periods, controlling for other determinants of disclosure behaviour. Prior research has struggled to distinguish between the quality and quantity dimensions of forward‐looking disclosures. Also, the impact of the recent financial crisis on these forward‐looking disclosure attributes has not yet been examined systematically. We address this gap by exploiting the unique setting of German publicly traded firms. These firms must provide forward‐looking information within their audited financial statements, although relevant regulation is sufficiently vague to allow great variation in the quality, scope and quantity of forward‐looking disclosures actually observed. Using hand‐collected data from 2005 to 2009, we provide evidence of a significantly negative association between crisis and disclosure quality. This finding is robust to several different disclosure quality proxies and regression specifications. In contrast, we find no negative significant relation between crisis and disclosure quantity; rather, there is evidence that reported volume increases during the crisis. Our results are consistent with extreme uncertainty, as occurring during times of crisis, negatively affecting the quality of voluntary disclosures, while firms maintain or increase disclosure quantity, ultimately diluting the information density of forward‐looking disclosures.     

Effect of the ban on short selling on market prices and volatility

We examine the effects of the short‐selling ban, imposed by Australian regulators in the wake of the global financial crisis, on the trading of financial stocks. Our findings argue against commonly stated reasons for imposing short‐sale bans. We find no evidence that short‐sale restrictions provide support for stock prices or that they reduce volatility. Moreover, stocks subject to the short‐selling ban suffered a severe degradation in market quality. Controlling for the adverse effects of the financial crisis on markets, we show that short‐selling restrictions increase intraday volatility, reduce trading activity and increase bid–ask spreads.     

Ecological tourism in the state image policy structure. Experience and problems of modern Russia

The article deals with the problems of ecological tourism in Russia. The authors give various approaches to the understanding of ecological tourism in modern science, analyse the reasons of interest in this kind of tourism, consider its types and identify specific features. The article provides an overview of the main regions and countries where ecological tourism is developed at a high level and considers some national policy models in the field of ecological tourism. Specific attention is paid to the analysis of the development of ecological tourism in Russia and its current status; the examples of different programmes aiming at support of ecological tourism are given. Specific impetus is given to Russia's resources for the development of ecological tourism, for example, natural landscapes, national parks and nature heritage sites. The authors explore the main challenges to ecological tourism in Russia, identify factors that hinder its development and suggest measures to improve the ecological tourism in the Russian Federation. The authors focus on the projects that promote the improvement of Russia's image as an eco-touristic destination. The authors pay specific attention to the analysis of international cooperation in this field. The article discusses various projects carried out within the framework of bilateral cooperation. The article discusses the role of ecological tourism as a tool for image policy. The article analyses in detail which elements of the Russian image are under the influence of ecological tourism and what are the future prospects of ecological tourism.     

Seeing through a Glass Onion: broadening and deepening formative research in social marketing through a mixed methods approach

ABSTRACT

The purpose of formative research in social marketing is to understand the target audience to generate consumer insight, which informs the planning, development and initial implementation of social marketing programmes. Focus groups, interviews or surveys, all of which are self-report methods, are the most commonly reported methods employed in formative research. Reliance on a relatively narrow range of methods may constrain understanding and insight gained during formative research. This paper challenges social marketers to mix methods or use multiple methods and research perspectives to generate a broader understanding of the consumer and the context in which they behave. A case study is used to demonstrate how mixed methods were used in a formative research study to inform the development of a social marketing programme designed to change eating behaviour. Challenges of mixed methods are detailed along with recommendations for future research.