The relationship between interest rate volatility and the shadow economy in OECD countries: An asymmetric analysis

Interest rate changes by central banks are a strong monetary policy tool that has a significant impact on the performance of the real economy via various channels. Despite extensive theoretical and empirical studies in this area, the current literature lacks a comprehensive assessment of the relationship between interest rate volatility and the shadow economy. This study explores the link between interest rate volatility and the shadow economy for 38 Organisation for Economic Co-operation and Development (OECD) member countries over the period 1991–2021 using both linear and non-linear ARDL models. The use of the non-linear ARDL specification will allow for the possibility of an asymmetric effect of interest rate volatility on the shadow economy. In addition to the examination of the potential asymmetric effects, we also discuss the ramifications for policymakers with respect to monetary and financial policies while considering each country's specific economic structure.     

The moderating effect of innovation on the relationship between environmental and financial performance: Evidence from high emitters in Australia

This study examines whether environmental-related innovation moderates the association between environmental and financial performance measured respectively as carbon emissions and return on assets (ROA). The sample comprises 119 companies subject to Australia's National Greenhouse Energy Reporting Act (NGER) for the period 2009–2017. The results show that environmental innovation positively moderates the relationship between environmental performance and financial performance. The findings also imply that the impact of environmental innovation in improving environmental performance is observable with a 1-year lag. The results are robust to the alternative financial performance measures of Tobin's Q and Altman's Z score. The findings have important implications for company managers and policymakers and provide useful information on innovation's role in enhancing environmental and financial performance.     

Exploiting context-dependent preferences to protect borrowers

Journal of Financial Services Marketing - Focusing bias is one of the key contributors to over-borrowing. It describes how people, when making choices, give disproportionate attention and weight to...     

Are electronic government innovations helpful to deter corruption? Evidence from across the world

Electronic government innovations have been a critical development in public administration in recent years. Many countries have implemented e-government policies to enhance efficiency and transparency and combat corruption. This paper examines the impact of e-government on corruption using longitudinal data for more than 170 countries from 2002 to 2020. The empirical results suggest that e-government serves as a deterrent to corrupt activities. We analyse which e-government domains affect corruption, which types of corruption are more affected by e-government and the circumstances under which e-government is more effective in reducing corruption. The empirical results suggest that online service completion and e-participation are important features of e-government as an anticorruption tool. Evidence suggests that e-participation reduces corrupt legislature activities, public sector theft, executive bribery, and corrupt exchanges. The potential of e-government to deter corruption is higher in countries where corruption is moderate or high and economic development is lower. Higher levels of GDP per capita, foreign direct investment, and political rights are also associated with lower levels of corruption.     

Correction to: Exploiting context-dependent preferences to protect borrowers

Journal of Financial Services Marketing -     

It may be urgent,but is it important? A look at how employees evaluate their emails

This paper presents the results of a study designed to identify the cues employees use to identify an email as important and/or urgent. Taking an emic perspective, a qualitative research methodology is used to analyze interview responses from knowledge workers. Our findings support the notion that employees use strategies similar to those encapsulated in Mitchell et al.’s (1997) operationalization of stakeholder salience when evaluating an email's importance and/or urgency. Results from this study can be used to design email policies to support knowledge worker performance.     

A global perspective on combating Shanzhai products: Cross-cultural solutions

To compete on the world market, companies from emerging economies often adapt their innovations to satisfy unique cultural needs. They do so, in part, by copying the products of their western counterparts with a degree of modification. This approach is referred to as Shanzhai, which is a Chinese neologism meaning “copycat.” In this article, we discuss the Shanzhai phenomenon and explain Shanzhai's development stages and threats to original brands across the globe. Then, we examine how cultural factors (i.e., power distance belief, face consciousness, and analytic vs. holistic-thinking style) influence consumers’ perception towards Shanzhai products. We further suggest that original manufacturers should adopt selected strategies to combat Shanzhai threats vis-à-vis three cultural drivers. One driver entails launching full product lines and developing new distribution channels in high power distance belief cultures but promoting brand originality in low power distance belief cultures. A second alternative involves embracing a sustainable and green brand image in low face-sensitive cultures but strengthening brand logo impacts and enhancing intangible brand benefits—such as social value (e.g., brand user profile, prestige)—in high face-sensitive cultures. The third entails communicating integrated product values in holistic-thinking cultures but highlighting an offering's most competitive and unique features in analytic-thinking cultures.     

Social influence and stakeholder engagement behavior conformity,compliance, and reactance

Following the proliferation of customer engagement behavior research, rising interest is observed in marketing-based stakeholder engagement behavior, which covers any stakeholder's—including a customer's, employee's, firm's, supplier's, competitor's, and so forth—behavioral engagement in his/her role-related interactions, activities, and relationships. However, despite its importance, understanding of the stakeholder engagement behavior concept remains tenuous, is therefore addressed in this paper. We first conceptualize stakeholder engagement behavior as a stakeholder's behavioral manifestation toward his/her role-related interactions, activities, and relationships, followed by an exploration of the effect of influencor-exerted social influence on an influencee's stakeholder engagement behavior. We argue this effect to manifest as stakeholder engagement behavior conformity, -compliance, or -reactance, depending on the influencee's level of acceptance of the influencor's exerted influence. In turn, we propose stakeholder engagement behavior conformity, -compliance, and -reactance to yield cooperation, coopetition, or competition in the influencor/influencee relationship, respectively, as depicted in a conceptual model and an associated set of propositions. By investigating the interface of social influence, stakeholder engagement behavior, and its prevailing relational consequences (i.e., cooperation, coopetition, and competition), our analyses offer novel theoretical acumen and actionable managerial insight.