The Coase Theorem Revisited: Implications for Economic Transition

This paper supports the view expressed by other authors that Ronald Coase’s ideas are often misrepresented in the academic world. It restates some of Coase’s main findings with special emphasis on their relevance to processes taking place in Eastern Europe. The goal of this paper is to revisit Coasean theory, to prove that oftentimes it is misrepresented and misinterpreted and to show its relevance to some societies experiencing high transaction costs. The role of the legal system under high transaction costs is stressed in its importance to transitional economies experiencing staggeringly high transaction costs. This paper tries to shed light on the importance of transaction costs in the newly emerging markets and the respective role courts and the government should play in directing economic resources.

A comparative study of range‐based stock return volatility estimators for the German market

This study investigates the relative performance of various volatility estimators based on daily and intraday price ranges of 25 German equities, with the two‐scales realized volatility used as a benchmark. The empirical results show that all estimators based on daily ranges are by far superior to the classical estimator but are severely negatively biased due to discrete trading. The realized range obtained from intraday ranges performs better in terms of both bias and efficiency, although its performance still suffers from discrete trading. In these settings, the bias correcting procedure developed by Christensen and Podolskij (2007) appears to consistently outperform all other alternatives, including the scaled version of Martens and van Dijk (2007), and provides evidence of the relative advantages of the realized range. © 2011 Wiley Periodicals, Inc. Jrl Fut Mark 32:560–586, 2012     

Perceived marketing–sales relationship effectiveness: a matter of justice

There is a compelling need to improve the relationship between managers in marketing and sales departments. This paper argues that one critical way of enhancing individual managers’ perceptions of relationship effectiveness between these departments is to view the issue as a matter of justice and suggests that perceived marketing–sales relationship effectiveness is positively influenced by managers’ perceptions of organizational justice. Furthermore, it proposes that interfunctional communication has the potential to enhance the proposed positive effects of justice and hence needs to be considered and effectively managed when looking at marketing–sales relationship effectiveness. Data drawn from a survey of 203 marketing and sales managers in 38 consumer packaged goods companies are used to empirically test these predictions. The authors find that perceived sales–marketing relationship effectiveness is influenced by perceptions of distributive, procedural and interactional justice. Greater interfunctional communication is found to further enhance the positive effects of distributive and procedural justice on perceived relationship effectiveness, but it does not contribute to the already strong positive effects of interactional justice. Furthermore, results reveal important differences in the effects of justice on perceived relationship effectiveness across the marketing and sales departments.     

Realized volatility transmission: The role of jumps and leverage effects

This paper is the first to employ a multivariate extension of the LHAR–CJ model for realized volatility of Corsi and Renó (2012) considering continuous and jump volatility components and leverage effects. The model is applied to financial (S&P 500), commodity (WTI crude oil) and forex (US$/EUR) intraday futures data and allows new insights in the transmission mechanisms among these markets. Besides significant leverage effects, we find that the jump components of all considered assets do not contain incremental information for the one-step ahead realized volatility. The volatility of S&P 500 and US$/EUR exchange rate futures exhibits significant spillovers to the realized volatility of WTI. Moreover, decreasing equity prices appear to increase volatility in other markets, while strengthening of the US$ seems to calm down the crude oil market.     

Dynamics of volatility transmission between the U.S. and the Chinese agricultural futures markets

The U.S. and China are two of the biggest players in the world agricultural market. The literature documents that volatility in the U.S. agricultural futures market spills over significantly to that of China. This article provides further insights into the spillovers from China to the U.S. as well as the time horizon and dynamics of the bidirectional spillovers through the application of a multivariate extension of the heterogeneous autoregressive model, in relation to four commodities – soybean, wheat, corn and sugar. The results confirm the existence of significant spillovers from the U.S. to China for four commodities, which are primarily generated by the shorter-term volatility components in the U.S., and provide evidence for the increasing pricing power of the Chinese market. The findings are robust against various specifications and have important investment and policy implications.     

Social Provisioning within a Culture-Nature Life Process

Abstract

Social provisioning is an amalgamation of social processes within a broader culture-nature life process. This article contributes to the literature on developing the concept of ‘social provisioning' and explores its scope by presenting theoretical and methodological contexts for social provisioning. Then it delineates three categories of processes: biological and geographical processes, processes that are usually analyzed as personal characteristics or social categories (e.g., gender), and processes defined around social activities (e.g., consumption). The system of processes presented allows for diverse entry points to an analysis of social provisioning beyond consumption, production and distribution. Further, the system of processes transcends the culture-economy, nature-economy, nature-culture and micro-macro dualisms in heterodox economic theory.     

Anomalies and financial distress

This paper explores commonalities across asset pricing anomalies. In particular, we assess implications of financial distress for the profitability of anomaly-based trading strategies. Strategies based on price momentum, earnings momentum, credit risk, dispersion, idiosyncratic volatility, and capital investments derive their profitability from taking short positions in high credit risk firms that experience deteriorating credit conditions. In contrast, the value-based strategy derives most of its profitability from taking long positions in high credit risk firms that survive financial distress and subsequently realize high returns. The accruals anomaly is an exception. It is robust among high and low credit risk firms in all credit conditions.     

Using consumer responsibility reminders to reduce cuteness-induced indulgent consumption

Cute products targeted to adults abound in the marketplace, and recent research has shown that whimsically cute products can increase indulgent consumption in adults. The current research explores the potential of using consumer reminders to curb these effects. This research identifies consumer responsibility reminders as an important factor that can limit indulgent consumption induced by exposure to cute products. Two studies show that the effect of cute products on indulgence can be reduced by (1) reminding consumers of their responsibility for their outcomes in life by enhancing feelings of personal control and (2) reminding consumers of their responsibility to other people by increasing prosocial orientation. Findings from this research have important implications for helping consumers make choices more consistent with their long-term well-being when faced with cute products in various categories.