Does corporate diversification create value in emerging markets? New evidence from Chile

Using a sample of 85 Chilean firms listed in the Santiago Stock Exchange from 2005 to 2013, we analyze the impact of corporate diversification on firm value. We consider voting rights of the main shareholder and institutional investors’ influence on firm value. We report firm‐value destruction for diversified firms. Regarding ownership concentration, we report a negative relation between the largest shareholder ownership and firm value. Separation between voting rights and cash flows rights of this shareholder is negatively related to firm value. While Pension Fund Administrators (AFP) mitigate firm value destruction in diversified firms, other institutional investors do not play an active role in controlling value destruction. Finally, if the largest owner is a family, we report firm‐value creation in diversified firms. Copyright © 2016 ASAC. Published by John Wiley & Sons, Ltd.     

Synergy between R&D and advertising on shareholder value: Does firm size matter?

Using the hierarchical linear model, we examine whether R&D and advertising and their synergy influence firm value. We also investigate whether firm size moderates the market value effects of R&D, advertising, and the synergistic effect of R&D and advertising on firm value. We find that R&D and the synergy between R&D and advertising have significant positive effects on shareholder value. Moreover, we find that the effects of R&D and advertising are significantly higher in large firms than small firms, while the synergistic effect is significantly positive in small firms but not in large firms. These results offer important insight for executives on the implications of resource allocation on R&D and advertising expenditures to create firm value. Copyright © 2016 ASAC. Published by John Wiley & Sons, Ltd.     

CEO Attributes,Board Composition,and Acquirer Value Creation: A Canadian Study

We examined CEO attributes, board composition, and ownership structure for their relationship to the share performance of the acquiring company around the acquisition announcement. Based on 273 acquisitions by Canadian firms from 1998 through 2002, we have shown that the levels of CEO and director ownership as well as the level of board independence were positively associated with the short‐term financial performance of the acquirer. Board size was negatively related to value creation. Finally, cash‐based deals and cross‐border transactions were also positively related to increases in shareholder wealth for the acquirer. Copyright © 2011 ASAC. Published by John Wiley & Sons, Ltd.     

Value creation in privately held family businesses: The moderating role of socioemotional wealth

This article examines value creation (VC) in the context of privately held family businesses using a value-based management approach. Namely, this paper assesses the influence of five value drivers (operating profit margin, sales growth, income tax rate, investment rate, and leverage) on the VC of family firms, considering the moderating effect of socioemotional wealth (SEW). Evidence from a sample of 188 Spanish family firms indicates a positive moderating effect of SEW on the relationship between operating profit margin, sales growth, and investment rate, and VC, leading to increases in the value of firms. The results emphasize that the importance of SEW and its variations imply heterogeneous strategic behaviours among family firms, and that economic and emotional goals might be compatible.     

Which Dimension of Corporate Social Responsibility is a Value Driver in the Oil and Gas Industry?

The oil and gas (O&G) industry suffers from a negative perception of poor sustainability. O&G companies are therefore engaged in several socially sustainable activities related to community development and environmental protection. This article determines whether the social, environmental, and economic dimensions of corporate social responsibility (CSR) are equally value‐additive to O&G companies. We measure the company‐specific level of CSR activities from the information provided in the annual financial reports of O&G companies and determine the effects of CSR dimensions on firm value. We find that CSR enhances firm value of O&G companies. While social activities such as employee well‐being and community development are key value‐drivers, environmental and economic sustainable activities have an insignificant impact on the market value of O&G companies. Copyright © 2018 ASAC. Published by John Wiley & Sons, Ltd     

品牌社群对顾客价值感知和创新的影响研究

近年来,品牌社群作为消费者群体性虚拟组织迅猛发展,为我们解读顾客价值提供了重要途径。文章认为,品牌社群的特征影响着顾客价值感知和顾客价值创新。通过实证分析可知,品牌社群技术性及品牌社群参与性等对顾客价值感知有正向影响,品牌社群共同意识、道德责任感及品牌社群技术性对顾客价值创新有正向影响。品牌社群运营者可以通过提高品牌社群技术性、促进成员的共同意识、道德责任感和参与性等方面做出行动,以促使成员更好地感知焦点品牌的顾客价值并且参与价值创新,品牌企业也可以通过关注和引导品牌社群的发展增强企业的竞争力。     

More gain,more give? The impact of brand community value on users’ value co-creation

Users' value co-creation behaviors contribute to the prosperity of brand communities as well as brand performance. This article aims to answer a basic question: are brand community users who obtain more value from the brand community more willing to co-create value? If so, why and under what conditions? Drawing from reciprocity theory, this study proposes that information value and social value lead to value co-creation by evoking users' reciprocity norm, and this effect depends on their self-presentation in the community. Results based on structural equation modeling combining survey data and archival data largely validate this framework, revealing that the reciprocity norm mediates the influence of brand community value on value co-creation. Additionally, information value increases value co-creation only when the level of self-presentation is high, and the positive effect of social value is not altered by self-presentation. By uncovering the mechanism and boundary conditions of how brand community value affects users’ value co-creation behaviors, this study extends the current literature on value co-creation and provides important practical implications.     

Generating Intrinsic Customer Value: Examples from Wal-Mart

For a variety of reasons, Wal-Mart is a transnational brand which has, at the same time, many fans and many detractors. Despite considerable criticism and opposition, the firm is accelerating in growth and retains a strong customer base. One reason for this growth and loyalty is that Wal-Mart generates intrinsic value through its brand name and brand community. Here, we highlight the latter method Wal-Mart uses to manage its brand and create value propositions by building loyalty among local community members. We provide a practical example of a special branding strategy that can be used by firms seeking innovative ways to create customer (and stakeholder) value.     

Understanding value-creating practices in social media-based brand communities

For service providers hosting social media-based brand communities, understanding the use of value-creating practices enables them to enhance their customers’ brand community experiences and facilitate value. Yet, extant social media-based brand community research neglects to examine the uses of practices in commonly occurring, direct service provider customer interactions that may be value co-creative. Thus, for a more holistic view of value creation, and informed by service logic, this study applies netnography to observe participants’ uses of practices in two social media-based cause brand communities, in both direct and indirect interactions. The findings reveal that participants predominantly employ practices in direct interactions and act as value co-creators. The findings extend empirical evidence into value-creating practices in social media-based brand communities. They also highlight how cause organisations should plan their uses of practices to facilitate the types of value-creating interactions they seek (i.e. direct and value co-creating, or indirect and independently value creating).     

Marketing channel evolution: From contactual efficiency to brand value co-creation and appropriation within the platform enterprise

Abstract

In recent years, major technological advances have been a primary force driving channel evolution. In particular, the Internet of things has provided a means for some firms to experience the rise of one of the most innovative and cutting-edge channels—the platform enterprise (i.e., firms such as Amazon, Etsy, and Airbnb). We examine the platform enterprise through a marketing channel evolution lens. In doing so, we point to key factors that enable particular kinds of firms to forge unique marketing channels. As platform enterprises, these channels offer value that transcends contactual efficiency, because they utilize their resources and capabilities not only to connect buyers and sellers efficiently but also to create a community of stakeholders whose collective efforts are focused on two linked priorities—brand value co-creation and brand value appropriation.     

Drivers of brand community engagement

Brand community engagement is evolving as a prominent relationship marketing variable that yields promising outcomes for the firms. Drawing upon the relevant premises of social exchange theory, this paper proposes a theoretical model portraying the role of online brand community based benefits (experience based and self-esteem based) and the community relationship investment in predicting the levels of brand community engagement.Data collected through a survey questionnaire technique from 925 members of the firm created online brand communities was employed to test the measurement and structural theory using confirmatory factor analysis and structural equation modeling respectively. The empirical results reveal that the customers’ experiential and self-esteem based benefits drive their brand community engagement. The perceived community relationship investment of the members also drives their brand community engagement positively. The sequential structural model also supported a positive impact exerted by brand community engagement on brand community commitment and brand loyalty. Additionally, it is observed that the focal brand ownership moderates the effect of community benefits and community relationship investment on brand community engagement.This study contributes to the nascent academic research on online brand communities and to the existing understanding of the brand community managers in managing customer engagement in online brand communities, thereby of profound theoretical and managerial relevance.     

Business‐to‐Business Branding: A Review and Assessment of the Impact of Non‐Attribute‐Based Brand Beliefs on Buyer's Attitudinal Loyalty

Business‐to‐business branding has received increasing attention from researchers in the last few years. Nonetheless, there is no agreement on the relative contribution of a brand versus an offering's functional attributes to the industrial buyer's preferences. Drawing on models from the business‐to‐consumer context, this paper demonstrates that non‐attribute‒based brand beliefs are predictors of hedonic outcomes as measured by industrial buyers' attitudinal loyalty, while attribute‐based brand beliefs are not. Moreover, the moderating role of the buyer's level of knowledge for the value‐generating process is identified, suggesting that the impact of non‐attribute‒based brand beliefs on attitudinal loyalty is greater for buyers with a low level of knowledge. Copyright © 2012 ASAC. Published by John Wiley & Sons, Ltd.     

Equity recognition of mandatory accounting changes: the case of transitional goodwill impairment losses

This study investigates if and how the use of the retroactive method to account for a mandatory accounting change affects a firm's measurement and recognition choices. We examine if reporting incentives and constraints are associated with the magnitude of transitional goodwill impairment losses reported by Canadian firms implementing Section 3062 on purchased goodwill. Our results indicate firms have an incentive to both overstate and understate transitional goodwill impairment losses. We also show that financially literate and independent audit committees constrain managerial opportunism. Copyright © 2008 ASAC. Published by John Wiley & Sons, Ltd.     

Transforming visitors into members in online brand communities: Evidence from China

Using observational learning theory, this study investigates how simply viewing posts can affect visitors' intentions to join an online brand community. The study finds that the viewing of posts leads to informational value and perceived social value, which in turn increases visitors' intentions to participate in the community. For visitors with brand ownership, both informational value and perceived social value play full mediating roles; for visitors without brand ownership, both values play partial mediating roles. In addition, for visitors with brand ownership, informational value is just as important as perceived social value in shaping their participation intentions; for those without brand ownership, perceived social value is more important than informational value. The findings enrich the brand community literature and provide implications for brand community development.     

The influence of brand personality and relative brand identification on brand loyalty in the European mobile phone market

This study investigates the influence of brand personality on consumer loyalty and the moderating role of relative brand identification for multiple brands in the same product category. Survey data were collected from 1,651 respondents in the United Kingdom, France, and Germany. Results indicate that dimensions of brand personality that are positively associated with consumer brand loyalty vary across brands in the mobile phone category. Furthermore, relative brand identification not only positively affects consumer loyalty, it also moderates the relationship between brand personality and consumer loyalty. Copyright © 2015 ASAC. Published by John Wiley & Sons, Ltd.     

Peer-to-Peer Value Through Social Capital in an Online Motor Neuron Disease Community

Millions of people affected by disability or chronic disease access social support and information through online health communities. These communities of common interest flourish on the Internet, with participants creating peer-to-peer value through social support and information exchange. This study observes a community of people affected by motor neuron disease creating value for themselves and each other within an online health community. The community is studied through the lens of social capital theory, a construct borrowed from the field of sociology that contributes to our understanding of why people gravitate towards these online communities for support and information. The results contribute increased awareness of how peer-to-peer value is created within online health communities and highlight the need for marketers to understand the implications of such communities on consumer behavior as it relates to health care.     

在线品牌社群成员关系如何促进品牌忠诚——基于强弱连带整合的视角

文章从强弱连带整合的视角,探讨在线品牌社群成员强关系和弱关系数量对品牌忠诚的促进机制。借鉴社会资源理论的研究框架,基于品牌社群相关理论,本文提出了研究假设,并采用偏最小二乘法进行实证检验。结果显示：弱关系数量不会增强品牌社群信息价值和社群社交价值;强关系数量则对两种社群价值都有促进作用;品牌社群信息价值只能促进持续性社群承诺,而品牌社群社交价值会促进持续性社群承诺、情感性社群承诺和规范性社群承诺;情感性社群承诺和持续性社群承诺都会促进品牌忠诚,规范性社群承诺则不能。研究结论从连带强度的视角丰富了品牌社群理论,同时对在线品牌社群建设具有指导意义。     

Role of customer perceived brand ethicality in inducing engagement in online brand communities

In recent times, ethical consumerism has motivated firms to behave ethically to garner various benefits for their brands. More specifically, firms have become more conscious of consumers' perceptions of brand ethicality. Thus, recent research on this topic attempts to explore the factors that can lead to the formation of perceptions of brand ethicality and its favorable outcomes for the brand. This research contributes to the existing literature on brand ethicality by examining the role of perceived brand marketing communications in engendering perceptions of brand ethicality among consumers. Further, this research explores online brand community engagement as the outcome of perceived brand ethicality. The study's results based on the analysis of 397 responses exhibit that various elements of brand communications tend to generate favorable perceptions of brand ethicality. Such perceptions of the brand ethicality further induce an inclination towards engaging with online communities of such brands. The study offers specific implications for academicians and practitioners.     

Key service drivers for high-tech service brand equity: The mediating role of overall service quality and perceived value

Abstract

This study investigates how different aspects of service quality could have effects on overall perception of service quality, perceived value, and service brand equity. Based on a survey of active users of mobile telecommunications services in Taiwan, we obtained the following findings. First, we found that empathy, network quality, reliability, and assurance, but not tangibles and responsiveness, have a significant effect on service quality and value perception. Second, the effect of overall service quality on brand equity is partially mediated by perceived value. Third, overall service quality has differential mediation effects on the relationships between specific service quality dimensions and perceived value. Finally, empathy and network quality have direct effects on brand equity. For managers, our study suggests the importance of identifying key service drivers for building strong service brand for high-tech service firms. The identification of key service drivers could then enable these firms to make strategic decisions on services investments. It also demonstrates the importance of the humanisation of technology for services firms. This study is original in that it explores the path from specific services qualities to service brand equity.     

Assessing credit quality from the equity market: can a structural approach forecast credit ratings?

We investigate the empirical performance of default probability prediction based on Merton's (1974) structural credit risk model. More specifically, we study if distance‐to‐default is a sufficient statistic for the equity market information concerning the credit quality of the debt‐issuing firm. We show that a simple reduced form model outperforms the Merton (1974) model for both in‐sample fitting and out‐of‐sample predictability for credit ratings, and that both can be greatly improved by including the firm's equity value as an additional variable. Moreover, the empirical performance of this hybrid model is very similar to that of the simple reduced form model. As a result, we conclude that distant‐to‐default alone does not adequately capture the firm's credit quality information from the equity market. Copyright © 2007 ASAC. Published by John Wiley & Sons, Ltd.