Examining the Drivers for Franchised Chains Performance through the Lens of the Dynamic Capabilities Approach

This paper draws on the dynamic capabilities approach to explain the performance of franchised chains. This approach is a useful lens to understand why some chains are more likely to drive superior performance than others. Hence, using this theoretical lens, we explore why and how several characteristics of franchised chains influence sales performance. This study includes 189 retail and service chains operating in the United States. Findings show that experience before franchising, length of training, chain age, franchising fees, and level of internationalization positively impact performance of franchised chains, whereas the proportion of franchised units has a curvilinear influence (inverted‐U shape) on chains' performance. Implications for franchising scholars and practitioners are discussed.     

Does uncertainty matter for loan charge-offs?

Using a stylized real options model, we show that discretion over the timing of charging off a non-performing loan could be economically justified when collateral values are uncertain and there is a chance of loan recovery. The implied hypothesis of an “uncertainty dependence” aspect in loan charge-offs is empirically tested and validated using a panel of European banks. A welfare-maximizing regulator might want to let banks pursue such discretionary loan charge-off behavior, with the problem of distinguishing it from alternative capital management and income smoothing objectives, while transparency-seeking accounting standards setters would presumably not.     

Sandwich-Course Training in Higher Education as a Major Strategic Thrust Regional Policy of Professional Training： Lessons Learned From the Pioneering Example of the University Institute of Technology Corsica

Corsica is an island economy marked by the complete absence of any of the big holdings and multinationals that fuel and forge the worldwide economy. Equally absent is any of the kind of medium-sized enterprises servicing big business that have spearheaded local economies in other regions like Lombardy. Corsica＇s economic fabric is essentially made up of small and home businesses, farm smallholdings, artisans, and small-scale retail. Given how public-sector capital investment is already hypertrophied, a policy of investment in human capital could be a compelling new opportunity to trigger a dynamic regional development impetus. Leading the way, the University Institute of Technology Corsica, Corsica University＇s affiliated school of applied vocational technologies, is demonstrating its ability to act as a structurally engaged facilitator of island-wide spatial planning and regional branding. As a founding pillar in pioneering the emergence of a sandwich-course training system in higher education in Corsica, in 2010 the university made its entire training curriculum fully accessible to all through the signature of apprenticeship training or vocational qualifications agreements. This grass-roots programme is the outcome of a committed core strategy to develop partnerships with the island＇s key social and economic communities （businesses, community groups, and local authorities）, and it plays a fundamental role in shaping and selling the most vital valued assets that typify a regional territory emerging into a structured destination-brand identity （simultaneous growth in the employability and quality of school-to-work transition shown by its human capital, mass shift in the degree of skill acquisition directly tied to the regional territory＇s own organic needs, fluidity of knowledge transfer fully controlled through sandwich placements, deep sustainable entrepreneurship education etc.）. After highlighting the specific features of the sandwich training policy development process in Corsica as a shaper of the Regional Vocational Development Programme, this paper brings an analysis of the lessons learned from the pioneering example of the University Institute of Technology Corsica as a dynamic engineer of structured future and regional brand for Corsica.     

HOW DID THE ASIAN STOCK MARKETS REACT TO BANK MERGERS AFTER THE 1997 FINANCIAL CRISIS?

Abstract.  The objective of this paper is to empirically assess the stock market reaction to the announcement of bank mergers and acquisitions (M&As) in eight East Asian countries over the 1997–2003 period. M&As are classified according to the status of entity, the time period of the deal and the maturity of the banking system. A bivariate GARCH model is used to estimate abnormal returns taking beta conditional variability into account. We find that the market reacted negatively to M&As during the crisis period (1997–2000) and also in the less mature banking systems (Indonesia, Malaysia, the Philippines, South Korea and Thailand).     

Reducing agency conflicts through bank dividend payout decisions: the role of opacity and ownership structure

We empirically examine whether banks’ dividend decisions are influenced by their degree of opacity and ownership structure. We find that banks with concentrated ownership structure pay lower dividends when they have high degrees of opacity, in line with the hypothesis that majority shareholders pay lower dividends to extract higher levels of private benefits. We do not observe such expropriation behaviour from managers in widely held banks. Further analysis shows that higher levels of shareholder protection and stronger supervisory regimes help to constrain opportunistic behaviour of majority shareholders. Our findings have critical policy implications for the Basel 3 implementation of restrictions on dividend payouts.     

Consumers’ Perceptions of African Wildlife Meat: A Laddering Study

African wildlife meat offers South Africans' a healthy and novel red meat alternative, yet consumption is far less than that of beef and lamb. Laddering interviews with 40 respondents were employed to identify the consequences and values associated with the product's perceived attributes. Important attributes included low levels of fat, dryness, novelty, and special preparation requirements. Significant values included security, self-esteem, hedonism, tradition, and stimulation. Promoters of the product are advised to capitalize on consumers' interest in health and the health benefits of the meat in their advertising strategy. They can also address current barriers to consumption as indicated by negative, undesirable consequences (difficult and time-consuming to prepare) by promoting quick and easy ways of preparation, provision of ready-to-eat dishes and training.     

Longitudinal evidence on financial expectations in Albania

This article focuses on the effect of remittances on financial expectations in Albania using longitudinal data covering the period 2002–2004. To study the dynamics of income satisfaction at the household level, we use subjective data on past, current and future financial situations and estimate random and fixed effect ordered Probit models. We find that households are more optimistic about the future when they have experienced an improvement in their financial situation in the past and when they have received private transfers from foreign countries.     

Cross‐National Analysis of Gender Differences in Job Satisfaction

Research over the past two decades has found significant gender differences in subjective job satisfaction, with the result that women report greater satisfaction than men in some countries. This paper examines the so‐called “gender paradox” using data from the European Social Survey for a subset of fourteen countries in the European Union. We focus on the hypothesis that women place higher values on certain work characteristics than men, which explains the observed differential. Using estimates from Probit and ordered Probit models, we conduct standard Blinder–Oaxaca decompositions to estimate the impact that differential valuations of characteristics have on the gender difference in self‐reported job satisfaction. The results indicate that females continue to report higher levels of job satisfaction than do men in some countries, and the difference remains even after controlling for a wide range of personal and job characteristics and working conditions. The decompositions suggest that a relatively small share of the gender differential is attributable to gender differences in the weights placed on working conditions in most countries. Rather, gender differences in job characteristics contribute relatively more to explaining the gender–job satisfaction differential.     

“I even met happy gypsies”

Economic studies of the Roma population, which is the largest and the poorest ethnic minority in Europe, remain sparse due to the limited availability of appropriate micro level data. This paper provides a comparative analysis of life satisfaction between Roma and non‐Roma young adults aged between 15 and 24 years using survey data collected from Serbia in 2010 and from Bosnia and Herzegovina in 2011. Results from raw answers show that the young Roma population living in settlements is less satisfied with life than non‐Roma. However, we find instead that the former group is more satisfied once we account for the fact that Roma have more disadvantaged characteristics on average. Also, Roma young adults expect a better life within one year compared to the non‐Roma in Serbia while there is no difference in Bosnia and Herzegovina.