The rise of smart consumers: role of smart servicescape and smart consumer experience co-creation

ABSTRACT

Rapid technological advancements have led to the emergence of smart services and smart consumers. This study focuses on smart consumers who voluntarily engage in value creation activities, in order to conceptualise smart experience co-creation (SEC) and the smart servicescape. Drawing on the Stimulus-Organism-Response (SOR) framework, a model is proposed and tested around the impacts of smart servicescape dimensions (aesthetics, superior functionality, social presence, perceived interactivity and perceived personalisation) on smart consumer experience co-creation. SEC is conceptualised as a second-order construct consisting of cognitive, hedonic, social/personal, and pragmatic/economic first-order dimensions. Results show that the technological environmental cues of the smart servicescape (S) collectively influence smart experience co-creation (O), and this co-created experience eventually influences consumers’ service brand equity and word-of-mouth (WOM) intentions (R). A major novelty of this study lies in uncovering the relationship between experience co-creation and service brand equity. Findings have theoretical and managerial implications for smart services.     

The effects of MiFID II on sell-side analysts,buy-side analysts,and firms

Review of Accounting Studies - This paper provides early but broad empirical evidence on MiFID II, which requires investment firms to unbundle investment research from other costs they charge to...     

Analyst Report Readability

Using an extensive database of 356,463 sell‐side equity analysts' reports from 2002 to 2009, this study is one of the first to analyze the readability of analysts' reports. We first examine the determinants of variations in analyst report readability. Using several proxies for ability, we show that reports are more readable when issued by analysts with higher ability. Second, we test the relation between analysts' report readability and stock trading volume reactions. We find that trading volume reactions increase with the readability of analysts' text, consistent with theoretical models that predict that more precise information (and hence more informative signals) results in investors' initiating trades. These results support the view that the readability of analysts' reports is important to analysts and capital market participants.     

Individual Large Shareholders,Earnings Management,and Capital‐Market Consequences

Using a large hand‐collected sample of all blockholders (ownership ≥ 5%) of S&P 1500 firms for the years 2002–2009, we first document significant individual blockholder effects on earnings management (accrual‐based earnings management, real earnings management, and restatements). This association is driven primarily by these large shareholders influencing rather than selecting firms’ financial reporting practices. Second, the market's reaction to earnings announcements suggests that investors recognize the heterogeneity in blockholders’ influence on earnings management. The results highlight the highly individualized effects of blockholders and a mechanism through which shareholders impact reported earnings.     

Breaking the mould? Innovation as a strategy for corporate renewal

In contrast to studies of HRM and innovation within hi-tech industries or greenfield sites, this paper uses longitudinal data to analyse the attempts of two mature corporations to shift from business strategies of 'cost reduction' and 'growth by acquisition' towards organizations that compete through innovation. The case studies describe how human resource management interventions and the structure of the HR function itself are used as change levers to support the shift in business strategies. By analysing the different organizational contexts, the paper identifies the complex microprocesses that either facilitate or constrain such organizational change. Its contribution lies in considering strategies concerned with innovation in both product and sales and marketing; in tracking these change processes over time using in depth case studies; and in considering innovation as a strategic trigger for corporate renewal.     

Voluntary disclosure practices by foreign firms cross-listed in the United States

This is one of the first large-scale studies to examine the voluntary disclosure practices of foreign firms cross-listed in the United States. We proxy for voluntary disclosure using three attributes of firms’ management earnings guidance: (1) the likelihood of issuance; (2) the frequency of earnings guidance; and (3) a guidance quality measure. After first establishing that market participants view these firms’ disclosures as credible and economically important (i.e., the disclosures are negatively related to analyst forecast errors and the implied cost of equity capital), we compare cross-listed firms’ disclosure practices with comparable US firms and explore variations in disclosure practices among cross-listed firms. We find that cross-listed firms issue less frequent and lower quality management earnings guidance than comparable US firms. We further show that the gap between US and cross-listed firms widened after passage of Regulation FD, a regulation which induced greater public disclosure of firm-specific information. Focusing on the sample of cross-listing firms, we show that firms from common-law countries disclose more than firms from code-law countries. Finally, our results indicate that cross-listed firms that do not list on an organized US exchange provide more frequent and higher quality disclosure than those that do list on organized exchanges.     

FOREIGN TRADE AND THE EXCHANGE RATE IN BOTSWANA

Botswana is a success story of exceptional economic performance, sound development management, and good governance. A great deal of that success can be attributed to the country's export performance and the avoidance of the 'Dutch Disease' syndrome that has plagued other natural resource based African countries. This article documents and analyzes Botswana's trade and exchange rate relationship, during the past two decades, in the context of the country's economic performance, and examines the related issue of the value of the country's currency to determine whether it is overvalued or undervalued.     

Going global,feeling small: an examination of managers' reactions to global restructuring in a multinational organisation

This paper is concerned with examining the reactions of managers to the process of global restructuring in a large, multinational food-processing company. Much extant research concerning globalisation has focused on the wider economic, political and social outcomes. Perhaps surprisingly, relatively little attention has been given to how globalisation is experienced inside organisations. This paper examines how country-level managers have been affected by the move to a new global structure in their organisation. We present evidence of these managers feeling disempowered by global reorganisation and of a largely negative impact on their feelings towards the organisation they work for.