Do Boards of Directors Influence Corporate Sustainable Development? An Attention‐Based Analysis

Following the attention‐based view of the firm (ABV), boards of directors’ link to corporate sustainable development (CSD) could be dependent upon certain attention structures: valuation of environmental stimuli, rules of the game and the players. Studying a sample of large Australian firms, the findings indicate that the proposed attention‐directing structures do appear to be linked to CSD in a manner consistent with the ABV. Specifically, creating awareness through scanning efforts links boards to CSD. Stakeholder debate, as a boardroom rule, is also significantly associated with CSD. Furthermore, as a so‐called ‘player’ on the board, women directors have a moderating effect on the relationships between environmental scanning, stakeholder debate and CSD. The findings are discussed along with limitations and directions for future research. Copyright © 2018 John Wiley & Sons, Ltd and ERP Environment     

Organizational attention and learning under regulatory intervention: Governmental investigation into auto engine quality

We examine the efficacy of government regulation on a firm's product. We draw on the behavioural approach of organization research in order to understand the micromechanisms whereby the regulatory intervention process affects corporate operation. We suggest that while government investigations may limit the improvements in product quality by distracting a firm's attention, this unintended outcome depends on the extent to which the firm engages in a substantive problem‐solving process with the regulator during an investigation process. A longitudinal analysis of the US government's investigation into motor vehicle engine production offers overall support for our argument. The paper concludes with a discussion of the implications that our findings present to learning theory and institutional literature. Copyright © 2017 ASAC. Published by John Wiley & Sons, Ltd.     

Advertising to the masses: the effects of crowding on the attention to place-based advertising

Advertising situated in environments where people congregate or pass through on their way to somewhere else benefit from being placed in such high traffic areas. However, these strategically placed ads also suffer from conditions of human crowding that prevents them from being noticed and processed. We undertake a study of place-based advertising in a shopping mall using facial recognition software to determine the effect of human density on the attention directed to advertising. We find that as human density increases, attention to advertising decreases, but only to a point where it begins to increase again. Our research also finds that human density plays a moderating role on the motivation to process advertising.     

“Retail is detail! Give consumers a gift rather than a bundle”: Promotion framing and consumer product returns

Retailers often use the promotion strategy of offering supplementary products (e.g., free gift, bundle) to attract consumers and increase sales. Despite the growing literature on the promotions that are differently framed but offer economically identical values, little research has examined the link between promotion framing and consumer product returns. The current article sheds light on this relationship, hypothesizing that a free gift promotion would be superior to a bundle promotion in reducing consumer product returns. The findings suggest that a gift‐framed promotion leads to a lower product return intention than an economically equivalent bundle promotion, because consumers tend to perceive more loss from giving up the gift‐framed (vs. bundle‐framed) deal. Further, this study examines a moderating role of brand familiarity (familiar vs. unfamiliar) and shows that the merits of free gift framing on product return intention via perceived loss are amplified (attenuated) when the promoted brand is familiar (unfamiliar). Overall, the investigations of this study imply that it is better to frame a promotion as a “free gift” than a “bundle” to increase perceived loss in returning the purchase and thus to decrease consumer product returns. This strategic intervention works especially when the gift is offered by familiar brands.     

Stadiums and Scheduling: Measuring Deadweight Losses in the Victorian Football League, 1920–70

Over a 50 year period, Australian Rules football's major league, the Victorian Football League, did not always use its largest and best-equipped stadium for regular season games between its most popular teams or schedule those teams to play twice in a regular season. We calculate deadweight losses from the use of capital goods (stadiums) and effects of match scheduling in this professional sports league. Such analysis has not been attempted previously because of the absence of a counterfactual. The welfare losses were significant but not sufficient to threaten the survival of a distance-protected cartel.     

A practical road map for assessing cyber risk

The increase in interconnectivity and developments in technology have caused cyber security to become a universal concern. This paper highlights the dangers of the evolution of cyber risk, the challenges of quantifying the impact of cyber-attacks and the feasibility of the traditional actuarial methodologies for quantifying cyber losses. In this paper, we present a practical roadmap for assessing cyber risk, a roadmap that emphasizes the importance of developing a company and culture-specific risk and resilience model. We develop a structure for a Bayesian network to model the financial loss as a function of the key drivers of risk and resilience. We use qualitative scorecard assessment to determine the level of cyber risk exposure and evaluate the effectiveness of resilience efforts in the organization. We highlight the importance of capitalizing on the knowledge of experts within the organization and discuss methods for aggregating multiple assessments. From an enterprise risk management perspective, impact on value should be the primary concern of managers. This paper uses a value-centric/reputational approach to risk management rather than a regulatory/capital-centric approach to risk.     

Some Variants of Constrained Estimation in Finite Population Sampling

This is a review article that unifies several important examples using constrained optimisation techniques. The basic tools are three simple mathematical optimisation results subject to certain constraints. Applications include calibration, benchmarking in small area estimation and imputation. A final illustration is constrained optimisation under a general divergence loss.     

The Effect of Media Coverage on the Pricing of Seasoned Equity Offerings

This paper examines the role of media coverage and investor attention on the outcomes of seasoned equity offerings (SEOs). I use an archive of Thomson Reuters news articles to proxy for firm visibility and investor attention. I find that the volumes of news articles prior to the offerings are positively associated with the offer price discounts of SEOs. Furthermore, the volumes of news articles are negatively associated with the cumulative abnormal returns three days around the SEOs. I conclude that the costs of equity increase with media coverage prior to SEOs. Overall, the evidence is consistent with the hypothesis that media coverage affects investors' information processing in SEOs. Copyright © 2018 ASAC. Published by John Wiley & Sons, Ltd.     

Celebrity endorsement in tourism: Attention,emotional arousal and familiarity

Celebrity endorsement in tourism is utilised by global marketing practitioners to attract tourists to visit destinations. Despite this, studies are yet to assess the efficacy of two specific types of celebrity endorsement, a celebrity from the host country (host celebrity) vs. a celebrity from the country-of-origin (origin celebrity). Utilising the match-up hypothesis, this research applied a quasi-experimental design, consisting of a mixed method approach, which combined eye-tracking and self-report data. Convergent results across three studies demonstrate that an origin celebrity elicits a higher intention to visit, mediated by the emotional arousal evoked from the endorsement. Eye-tracking analysis demonstrated that an origin celebrity elicits a higher degree of visual attention and emotional arousal when the advertised scenery is familiar. However, this promotion effect disappears in unfamiliar scenery. This research contributes to an evolving debate on celebrity endorsement in tourism, revealing the psychological and physiological mechanisms underpinning the effectiveness of destination marketing campaigns.     

Ketchup with your fries? Utilizing complementary product displays to transfer attention to a focal product

Does placing a display of complementary condiments (e.g., ketchup, mustard, buns,etc.) next to a display of hamburgers make shoppers more likely to attend to the hamburgers? Prior work has established that in-store marketing strategies play an important role in drawing attention to products in a retail setting. Building on this research, the present study develops a framework to better understand how shoppers in a natural retail environment attend to displays of complementary products, and how this attention transfers to a focal product. The results suggest that assortment complexity of a display positively affects initial attention capture.. Further, initial attention capture leads shoppers to spend longer evaluating the complementary products in the display, which, in turn, increases evaluation and choice of the focal product. As such, our framework indicates that complementary product displays can be effective at increasing attention to and choice of an associated focal product.