The state of theory in three premier advertising journals: a research note

Despite its importance, little is known about the prevalence of theory in the literature on advertising research. Utilising a content analysis of the three premier advertising journals over an 11-year period, it is found that only 17% of articles have made explicit use of theory. Psychology is the discipline from which the greatest number of articles drew their theoretical frameworks, followed by sociology and economics – indeed, theories from marketing and advertising are in the minority. Limitations are noted and implications of the results are discussed.     

Implementation of Basel II

In this article Jaime Caruana, Governor of the Bank of Spain and Chairman of the Basel Committee on Banking Supervision, first discusses the current status of the Basel II Accord. Next, he offers his perspective on macroeconomic issues related to the capital framework, focusing especially on pro‐cyclicality. Finally, he discusses three important Basel II implementation issues, namely calibration, validation, and cross‐border supervision.     

Tweaking public sector reporting with integrated reporting (IR) concepts

ABSTRACT

This paper examines the annual departmental reports prepared by Maltese government departments and highlights the gap between current practices and integrated reporting (IR). The authors suggest that principles and elements of IR could be gradually introduced in an effort to enhance transparency and accountability. The internalization of integrated thinking could also lead to enhanced value creation, and overcome the silo mentality that characterizes the Maltese public sector. Detailed guidelines for preparing ADRs urgently need to be developed in Malta—preparers should not expect to find them in the IIRC Framework, because they are not there.     

Information Gathering Externalities for a Multi‐Attribute Good

Most goods and services vary in numerous dimensions. Customers choose to acquire information to assess some characteristics and not others. Their choices affect firms' incentives to invest in quality and so lead to indirect externalities in consumers' choices. We characterize a model in which a monopolist invests in the quality of a product with two characteristics, and consumers are heterogeneous ex‐ante. Consumers do not internalize their influence on the firm's investment incentives when choosing which information to acquire. Cheaper information affects consumers' information gathering and thereby firm investment. This can paradoxically reduce consumer surplus, profits, and welfare.     

The Dawn of the AI Robots: Towards a New Framework of AI Robot Accountability

Journal of Business Ethics - Business, management, and business ethics literature pay little attention to the topic of AI robots. The broad spectrum of potential ethical issues pertains to using...     

Production targets

We analyze a dynamic model of quantity competition, where firms continuously adjust their quantity targets, but incur convex adjustment costs when they do so. Quantity targets serve as a partial commitment device and, in equilibrium, follow a hump‐shaped pattern. The final equilibrium is more competitive than in the static analog. We then use data on monthly production targets of the Big Three U.S. auto manufacturers and show a similar empirical hump‐shaped dynamic pattern. Taken together, this suggests that strategic considerations may play a role in setting auto production schedules, and that static models may misestimate the industry's competitiveness.     

Corporate greed: its effect on customer satisfaction,corporate social responsibility and corporate reputation among bank customers

Corporate greed has received increasing attention in recent years with various stories hitting the headlines, particularly after the global financial crisis and the ensuing negative attitudes toward banks. Customer satisfaction and corporate social responsibility are known to have a positive effect on corporate reputation among customers, but perceived corporate greed is likely to impede their effect. Corporate greed, customer satisfaction, corporate social responsibility and corporate reputation are considered, and a research model is proposed. Results indicate that the effect of corporate greed is stronger on corporate social responsibility than on customer satisfaction, implying that corporate social responsibility activities may be futile if the company is perceived to be acting greedily by its customers. Thus, perceptions of corporate greed need to be dealt with swiftly, to enable management to enhance the corporate reputation of the firm.