A Tale of Two Anomalies: Higher Returns of Low‐Risk Stocks and Return Seasonality

Prior studies have shown that low beta and low volatility stocks earn higher average returns than high beta and high volatility stocks, contradicting the prediction of the capital asset pricing model and the fundamental relationship between risk and return. In this paper, we demonstrate that this phenomenon is driven by the seasonality of stock returns. We show that the risk‐return tradeoff does hold in the nonsummer months, and that switching to a portfolio of low‐risk stocks in summer outperforms—both in terms of absolute and in risk‐adjusted returns—buy and hold strategies as well as the Sell in May strategy of switching to treasury bills in summer.     

Communications and rural America

An account of the report of the Office of Technology Assessment of the US Congress (OTA) on ‘The feasibility and value of broadband communications in rural areas’ and the subsequent conference entitled ‘Communications and rural America’, sponsored by the OTA in conjunction with the National Rural Center and the Aspen Institute Project on National Communications Policy Making, held in Washington, DC, on 15–17 November 1976.     

Methodological problems associated with research on unfair discrimination against racial minorities

Despite the passage of civil rights legislation, racial and ethnic minorities continue to experience unfair discrimination in the workplace. Therefore, considerable research in human resource management and social psychology has examined the factors thought to affect unfair discrimination in organizations [Cox, T. (1993). Cultural diversity in organizations: Theory, research, and practice. San Francisco: Berrett-Koehler]. Although research has focused on unfair discrimination, researchers have argued that the construct and external validity of the results have been adversely affected by methodological problems [e.g., Stone, E.F., Stone, D.L., & Dipboye, R.L. (1992). Stigmas in organizations: Race, handicaps, and physical unattractiveness. In Kelly, K. (Ed.). Issues, theory, and research in industrial and organizational psychology (pp. 385–457). Amsterdam: Elsevier]. Given this critique, the present paper (a) examines the degree to which recent research suffered from a number of methodological problems (e.g., obtrusive measures, non-representative samples, and demand characteristics), (b) identifies strategies for overcoming these problems, and (c) offers recommendations for advancing our understanding of unfair discrimination in organizational contexts.     

Growth and employment effects of fiscal regimes

This paper presents an endogenous growth model with firms exhibitingexternal or internal increasing returns. Firms are either perfectlyor monopolistically competitive. The paper extends fiscal policyresults, to cases where innovations are intentionally generatedby firms. To provide quantitative information, the model iscalibrated to replicate EU7 aggregate data. The theoreticalresults indicate that distortionary taxes have strong negativeeffects on growth and employment and they tend to increase withthe degree of private returns. However, the quantitative resultsturn out to be fairly robust with respect to alternative assumptionson the degree of internal increasing returns made in the processof calibrating the model.     

For fun and profit: Hedonic value from image interactivity and responses toward an online store

With the use of an on‐line retailer's Web site and an experimental method with 103 university students, statistical support through path analysis was found for positive influences of optimum stimulation level (preferred level of environmental stimulation) and recreational shopping on hedonic value (trying an image‐interactivity feature of an apparel Web site as a stimulating experience). The Web site's mixandmatch image interactivity feature allowed creation of visual images of product combinations. The path‐analysis model revealed significant paths between hedonic value and resulting emotional pleasure and arousal variables. A pattern of significant paths was also found between these three variables and global attitude, willingness to purchase, and willingness to patronize the on‐line store. Theoretical and managerial conclusions are provided. © 2005 Wiley Periodicals, Inc.     

Experimental study of cursed equilibrium in a signaling game

The laboratory experiment described in this paper provides evidence on play in signaling games in the context of electoral competition. In this game, voters must infer the preferred policy of each candidate from the candidate’s choice of whether to announce (truthfully) his preferred policy or to take no position. Bayesian voters would put high probability on a candidate having an extreme policy preference after observing him take no position, but cursed voters would not fully appreciate the informational content of the decision to take no position. Stated beliefs reveal substantial uncertainty about other players’ strategies. Based on estimates of a structural model of cursed equilibrium allowing for heterogeneity in the degree of cursedness, 32% of choices between candidates are consistent with Bayesian updating, 32% imply no inferences about others’ types after observing their actions, and the remainder indicate partial updating. Though the experiment also includes treatments with subjects in both roles, these estimates are based on interactions with programmed candidates, implying that uncertainty about others’ rationality and strategic sophistication is not driving the result. We also find that the quantal response error structure in which errors depend on payoff differences cannot explain the pattern of errors that subjects make.     

Effects of a product display and environmental fragrancing on approach responses and pleasurable experiences

The effects of atmospherics (i.e., a product display, pleasant and [in]appropriate ambient fragrances) on approach responses toward a product (global attitude, purchase intention, estimated price, and price the customer is willing to pay) and pleasurable experiences (sensory, affective, and cognitive pleasure) were investigated. In addition, the mediating effects of sensory, affective, and cognitive pleasure on approach responses toward a product were examined. Statistical analysis of responses of 109 female subjects each randomly assigned to one of four treatments showed that the appropriately fragranced display generated the most positive effect on approach responses and pleasurable experiences. A component of cognitive pleasure (seeing oneself in a fantasy) and multisensory pleasure mediated two approach responses: attitude toward the product and purchase intention. Findings suggest the importance of combining a display with environmental fragrancing as a marketing tool, but careful selection and application of environmental fragrances are required. © 2000 John Wiley & Sons, Inc.     

An Examination of Participation in Homebuyer Education and Counseling Services

Homebuyer education and counseling aims to help potential homebuyers understand benefits and risks of homeownership, choose a home and an appropriate mortgage, and build the financial know‐how needed for sustainable homeownership and financial health. U.S. Department of Housing and Urban Development's (HUD's) First‐Time Homebuyer Education and Counseling Demonstration found that women and individuals with greater education were generally more likely to participate in services. Enrollees referred to in‐person services are more likely to participate if they are early in the homebuying process or if they planned to purchase a home without a coborrower. They may perceive benefits of services to outweigh the costs of scheduling, traveling to, and attending in‐person services. Enrollees offered remote services (phone, online) are more likely to participate if they are “better off,” having higher mortgage literacy and credit scores. Results may inform agencies' messaging, outreach, and approach to providing services and meeting consumers' needs, federal policy, and interpretation of future impact estimates.     

Validation of a Fashion Brand Image Scale Capturing Cognitive,Sensory, and Affective Associations: Testing Its Role in an Extended Brand Equity Model

This research validated a new 16‐item brand image scale that captures cognitive, sensory, and affective dimensions (i.e., mystery, sensuality, intimacy) of tangible and intangible attributes of fashion brands. Three studies were conducted to develop a holistic, yet parsimonious, fashion brand image measure. The initial subthemes of brand image and representative items were based on a review of scholarly literature and industry‐based information and on interview findings. Reliability and validity of the new scale were confirmed using data from 218 college students and a national sample of 2,373 respondents. Convergent and discriminant validity were supported through confirmatory factor analysis. Nomological validity was supported through testing a structural model containing the three brand image dimensions, Roberts’ ( 2005 ) lovemarks experience, and brand equity variables. The new brand image scale is different from existing scales because it incorporates Roberts’ industry‐based perspective, including more comprehensive sensory and affective dimensions than found in past brand image scales. This study provides support for Roberts' lovemarks model and the contributors to brand equity, which has implications for theory and for marketing firms that endeavor to build an effective fashion brand image.