Correction to: Conservative solutions for progress: on solution types when combining QCA with in‑depth Process‑Tracing

Quality & Quantity -     

Information disclosure quality: correlation versus precision

We investigate how a multidimensional disclosure quality (i.e., correlation and precision) determines an optimal information disclosure strategy. We find that, for an infinitely lived, unlevered firm with market perfection, a truth‐telling disclosure is optimal at increasing the expected firm value. However, for a finitely lived, levered firm in the presence of market imperfections (e.g., bankruptcy cost), the optimal disclosure quality depends negatively on the level of imperfections. Once we consider the agency problem, such dependence can become positive, thereby highlighting the importance of a proper managerial‐incentive scheme to align the information disclosure interests of managers and shareholders.     

Chinese heritage tourists to heritage sites: what are the effects of heritage motivation and perceived authenticity on satisfaction?

Much of the literature on authenticity is Western-centric, while little work addresses the concept in the Asian environment. The literature relating to authenticity from Asian tourists’ point of view is even underdeveloped. This study therefore aims to fill the knowledge gap by investigating Chinese tourists’ perspective of authenticity. It also examines tourists’ perceived authenticity as a multi-dimensional construct in a consumer-based model, the relationship with heritage motivation and tourist satisfaction. Findings indicate that Chinese tourists’ perceptions of authenticity are closely related to objective and constructive authenticity. The study demonstrates that heritage motivation has a significant positive influence on perceived authenticity and that perceived authenticity has a strong ability to predict tourist satisfaction.     

The value of relational learning in global buyer‐supplier exchanges: a dyadic perspective and test of the pie‐sharing premise

Research in collaborative interorganizational relationships has typically focused on the value of these relationships to a specific supply chain partner. Furthermore, the phenomenon has rarely been explored in a global setting. Using primary data from 126 cross‐border dyads, we investigate the influence of relational learning on the relationship performance of both the buyer and the supplier, testing the contention that both members (1) benefit from relational learning efforts and (2) enjoy equal pieces of the benefits pie. We find that three specific types of relational learning (information sharing, joint sensemaking, and knowledge integration) influence relationship performance, and that these dimensions of relational learning affect supply chain partners in different ways. We draw conclusions regarding the relative value of relational learning for both buyers and suppliers. Copyright © 2011 John Wiley & Sons, Ltd.     

The impact of relative residence times on the distribution of heavy drinkers in highly distinct environments

Alcohol consumption is a function of social dynamics, environmental contexts, individuals' preferences and family history. Empirical surveys have focused primarily on identification of risk factors for high-level drinking but have done little to clarify the underlying mechanisms at work. Also, there have been few attempts to apply nonlinear dynamics to the study of these mechanisms and processes at the population level. A simple framework where drinking is modeled as a socially contagious process in low- and high-risk connected environments is introduced. Individuals are classified as light, moderate (assumed mobile), and heavy drinkers. Moderate drinkers provide the link between both environments, that is, they are assumed to be the only individuals drinking in both settings. The focus here is on the effect of moderate drinkers, measured by the proportion of their time spent in “low-” versus “high-” risk drinking environments, on the distribution of drinkers.A simple model within our contact framework predicts that if the relative residence times of moderate drinkers are distributed randomly between low- and high-risk environments then the proportion of heavy drinkers is likely to be higher than expected. However, the full story even in a highly simplified setting is not so simple because “strong” local social mixing tends to increase high-risk drinking on its own. High levels of social interaction between light and moderate drinkers in low-risk environments can diminish the importance of the distribution of relative drinking times on the prevalence of heavy drinking.     

Diversification benefits of commodity futures

The finance literature seems to be in support of the diversification benefits of adding commodity futures to an existing portfolio. Yet no empirical work has been performed to test whether the benefits are indeed statistically significant. This paper addresses several unresolved issues concerning the potential diversification benefits of commodities. First, we attempt to ascertain whether the alleged diversification benefits exist and are statistically significant. Second, to what extent are the diversification benefits unique to US investors? Would investors of a resource-based economy like Canada also benefit from adding commodities to their portfolios? Third, recent studies indicate that correlations among international equity returns are higher during bear markets than during bull markets. This type of regime-switching correlation behavior will mean lower diversification benefits from international investments when investors face a bearish environment at home. Do commodity futures display the same type of regime-switching behavior? To what extent do commodity futures offer real diversification benefits that are robust over time and across regimes? Finally, commodities may appear to be an asset for the more adventurous investors with higher risk tolerance. We want to know what type of investors should hold commodities. We demonstrate that the diversification benefit of commodities is a far more complex phenomenon than often understood in the finance literature.     

Capital Flight: China's Experience

We study the empirical determinants of China's capital flight. In addition to the covered interest differential, our empirical exercise includes a rather exhaustive list of macroeconomic variables and a few institutional factors. Overall, our regression exercise shows that China's capital flight is quite well explained by its own history and covered interest differentials. The other possible determinants offer relatively small additional explanatory power. It is also found that China's capital flight responds differently to the components of covered interest differentials and to the positive and negative components of these variables. The response pattern, however, depends on the choice of data frequency. The general impression is that the monthly results are more intuitive than the quarterly ones.     

How regulatory changes affect IPO underpricing in China

This paper examines the underpricing of IPOs in the Chinese A-share market during the period 1992–2006. Since its inception, the Chinese IPO market has transformed from a tightly-controlled system to a more market-oriented system. Reforms include the abolishment of listing quotas and fixed issue price determination; allowing for more market participation in IPO pricing. The regulatory changes of Chinese IPO market, though improving over time, actually are not monotonic. The regulatory framework started from over-restrictive to over-unrestrictive, then fine-tuned with additional restrictions. This study documents the regulatory reforms during the sample period and investigates how these regulatory changes affect IPO underpricing in China. During this period, we find that Chinese IPOs exhibit a huge underpricing. The size of the underpricing, however, decreases over the sample period. This study further finds that the IPO pricing method before the regulatory changes, which was based on a fixed P/E ratio pre-determined by the regulators, contributed significantly to the IPO underpricing in China. After adopting a series of regulatory reforms allowing underwriters discretion in the determination of issue price, this regulatory underpricing component vanishes. This study has policy implications in demonstrating the impacts of regulatory frameworks on IPO underpricing.     

SCALE ECONOMIES OF THE FRANCHISED BUSES AND FERRIES OF HONG KONG, 1948–1998

The privatization of state transport operators has been driven by empirical discoveries in transport economic research of the constant or even diseconomies of scale of these operators. With reference to public records and official statistics, this paper is an initial attempt to examine the scale economies of and output relationship between major bus and ferry operators in Hong Kong during the period 1948–1998. The two franchised bus and two franchised ferry companies each experienced unique scale effects during different periods and correlated with each other in terms of production. The paper will also discuss the possible reasons for this phenomenon and policy concerns related to this finding.     

Determinants and outcome of career competencies: Perspectives of hotel managers in China

This study aims to explore the determinants and outcome of career competencies. Based on the notion that organizations and individuals have respective obligations in the career management of employees’, this study developed perceived “organizational career management’ (OCM) and “career commitment” as determinants and career satisfaction as an outcome of career competencies. Data were collected in the state-owned hotels in China, and structural equation modeling was used to test the proposed relationships. The findings indicate that both perceived OCM and career commitments have positive, direct effects on career competencies. The findings of this study may benefit both hotels and hotel employees by providing valuable implications.