Strangers on the board: The impact of board internationalization on earnings management of Nordic firms

The internationalization of firms has led to boards becoming more international as well. In this study, we investigate the consequences of board internationalization. In particular, by drawing on research on language and board dynamics, we identify theory-based reasons why board internationalization could increase, or decrease, earnings management practices. We use agency theory, stressing how board internationalization may positively or negatively affect monitoring quality of boards. Next to agency theory, we use theories explaining how language differences in the boardroom complicates communication and how differences in language structures (referred to as linguistic relativity in the literature) affect directors’ perception and detection of earnings management practices. Using a sample of 3249 firm-year observations representing 586 non-financial listed Nordic firms during 2001–2008, we find that the presence of non-Nordic foreign directors on the board is associated with significantly higher levels of earnings management. Our analysis indicates that this effect is driven by language-related factors, as well as by the level of foreign board members’ accounting knowledge.     

The role of market orientation,relational capital,and internationalization speed in foreign market exit and re-entry decisions under turbulent conditions

Firms’ internationalization strategies can vary with changing environments. Occasionally, a firm may choose to re-enter a foreign market it had abandoned in the past if environmental conditions have improved. The present study provides insight into the foreign market exit and subsequent re-entry processes. Specifically, we utilize the strategic flexibility perspective to investigate the impact of market orientation, relational capital, and internationalization speed on market exit and re-entry decisions under turbulence in a host market. Using a sample of 156 Turkish firms that operated during the Arab Spring in the Egyptian market between 2010 and 2015, we find that the market-oriented firms are more flexible in their market exit decisions than less market-oriented organizations. In addition, relational capital specific to the host country has a negative impact on market exit decisions under conditions of political conflict. The results also suggest that strong ties with partners in the host country increase the propensity to re-enter the market.     

A study of the Consumer Ombudsman institution in Norway with some references to the other Nordic countries I: Background and description

In the seventies, the Consumer Ombudsman (CO) institution was established in the four Nordic countries Denmark, Finland, Norway, and Sweden. The CO is a supervisory body with the task of controlling that marketing methods used by business when selling goods and providing services are in conformity with the legislation. This article supplies information about the legislation and the role played by the CO in the supervisory system. It deals primarily with the Norwegian situation but makes references to the situation in the three other countries as well. It is pointed out that the most important difference between the old legislation on improper competition and the present Marketing Control Act is the establishment of new enforcement mechanisms. The contents of the legislation have not undergone any dramatic changes. In a companion article to follow in a later issue of JCP, an attempt is made to evaluate the work of the Norwegian CO and the Market Council. The position of business is described, and some present deregulation considerations are discussed.     

A comparative analysis of the role of national culture on foreign market acquisitions by U.S. firms and firms from emerging countries

Do firms from emerging economies differ from U.S. firms in their foreign market acquisition strategies? A comparison of cross-border acquisitions by firms from the United States and 18 emerging countries shows that (1) firms from both the United States and emerging countries target countries that are culturally closer to their home countries, (2) a strong interaction effect occurs between market potential and cultural distance for emerging country firms as the market potential increases (i.e., at high market potential, firms from emerging economies are willing to overlook cultural distance), (3) no interaction effect occurs between market potential and cultural distance for U.S. firms, and (4) different cultural dimensions affect the market entry strategies of U.S. firms and firms from emerging countries.     

Reducing distributor opportunism in the export market: Effects of monitoring mechanisms, norm-based information exchange, and market orientation

As monitoring mechanisms are critical to exporter–distributor relationships, the effectiveness of different types of monitoring mechanisms remains an important issue. Our study goes beyond the separate effects of monitoring mechanisms on opportunism, and tests the moderating effects of market orientation (MO) and norm-based information exchange on the monitoring mechanism–opportunism relationship. Based on survey data of 160 export ventures in China, we find that process control increases distributor opportunism, while norm-based information exchange and MO decrease it. Moreover, at high levels of norm-based information exchange and MO, the impact of process control on opportunism turns from positive to negative.     

Demand and distribution relationships in the ready-to-drink iced tea market: A graphical approach

The relationship between distribution coverage and market share for an incumbent brand and for new entrants in the ready-to-drink iced tea market during its growth phase is explored using state space diagrams. This graphical visualization method was originally developed to disentangle lead–lag relationships between short nonstationary time series, a situation in which standard econometric methods have difficulty. In this research we show the usefulness of this method for long time series in offering complementary insights to econometric models, in providing a simple and managerially useful tool, and in conducting exploratory data analysis to guide subsequent modeling decisions. In the ready-to-drink iced tea market, usage of this method shows that during introduction of new brands and growth of the category, demand leads distribution, but that as the market matures, the dominant incumbent can defend with a distribution-leading-demand dynamic. Further, distribution coverage eventually becomes relatively stable so that short term fluctuations in demand (probably due to responses to promotion) have minimal impact on distribution.

e-banking culture: A comparison of EU 27 countries and Portuguese case in the EU 27 retail banking context

The aim of this research is two-fold. Firstly we conducted a wise comparative analysis of EU 27 countries and secondly we identified distinct e-banking user segments of Portuguese citizens. We used a questionnaire for data collection (n=2358) and Latent Class Models (LCM) for data analysis. LCM revealed three segments in EU 27 (Portugal is in the poorest cluster, concerning the indicators used, with Greece, Spain and Cyprus) and two e-banking user segments in Portuguese citizens: Those who do not risk (49%), and Those who risk (51%). Our findings enable e-banking managers for taking appropriate strategic decisions.     

The moderating role of managerial ties in market orientation and innovation: An Asian perspective

This empirical study contributes to the extant literature by investigating the relations among market orientation, managerial ties and innovation simultaneously and interactively, from an Asian perspective. Our findings reveal that customer orientation and interfunctional coordination have a positive impact on innovation. Moreover, managerial ties play a moderation role in the market orientation–innovation linkage. Business ties enhance the relation between customer orientation and interfunctional coordination and innovation. On the other hand, business ties and competitor orientation have a negative interaction effect on innovation. In addition, political ties also dampen the relation between interfunctional coordination and innovation. Such results add new insights to the extant literature and provide implications for future research and marketing practices in Asia.     

亚洲四国汽车市场及贸易考察

为了进一步开拓亚洲汽车市场,扩大汽车产品出口, 由商务部亚洲司吕克俭副司长为团长、机电产品进出口商会张建南副会长为副团长的"亚洲汽车市场及贸易考察团"赴印度、缅旬、菲律宾和印尼四国,对当地汽车市场进行了贸易考察和洽谈。考察团在四国考察期间通过多种方式与四国政府的汽车产业主管部门,     

Doing right,investing right: Socially responsible investing and shareholder activism in the financial sector

In this article, we present an overview of corporate social responsibility (CSR) in the financial sector. We focus on how socially responsible investment and shareholder activism have been integral parts of corporate social responsibility in the financial sector. We examine how the financial sector and its firms are evaluated and rated via a sustainability index, the Dow Jones Sustainability World Index, and show that even leading financial institutions do not employ proactive practices regarding socially responsible investment and shareholder activism. Finally, we provide examples of two companies, UBS AG and the Co-operative Banking Group, that do utilize proactive practices.     

Entrepreneurial orientation,market orientation,network ties,and performance: Study of entrepreneurial firms in a developing economy

Entrepreneurial orientation (EO), market orientation (MO) and network ties are typically modeled as separate antecedents of performance. However, the boundary conditions for such models are under-explored, as is their applicability to developing economy settings. Accordingly, drawing on institutional and social capital theories, the current paper argues that the performance benefits of EO and MO are complementary, and vary across different levels of social and business network ties. Using primary data gathered from entrepreneurial firms operating in Ghana, the study findings indicate that aligning high levels of EO and MO improves business performance, and particularly so when social and business network ties are well developed, since under these latter conditions, the performance benefits of aligning EO and MO are greatest.     

Survival of high tech firms: The effects of diversity of product–market portfolios, patents, and trademarks

High tech firms can mitigate potential risks by diversifying their product–market portfolios. A key research question is how such diversification influences firm survival. A firm exits the market in two ways, specifically, dissolution and acquisition. Here, we model how the diversity of a new firm's product–market portfolio influences the times to both types of exits. Specifically, we allow for interaction effects of the competitive intensity of a firm's environment and the diversity of a firm's product–market portfolio with its patents and trademarks. Using a competing risk hazard model, we estimate the effects of various covariates on the time to exit for 1435 US high tech firms.We observed that a more diverse product–market portfolio, in conjunction with a larger number of patents, hastens the time to a firm's exit by dissolution (9% decrease in survival duration), while in conjunction with a larger number of trademarks, portfolio diversity delays the time to exit by dissolution (12% increase). A more competitive firm environment results in a greater effect on the portfolio's diversity in delaying its exit by dissolution (7% increase). On the other hand, a diverse product–market portfolio, combined with either a larger number of patents or trademarks, hastens the firm's exit by acquisition (19% and 11% decrease respectively).     

Top income shares in OECD countries: The role of government ideology and globalisation

This paper investigates how government ideology and globalisation are associated with top income shares in 17 OECD countries over the period 1970 to 2014. We use top income shares of the World Wealth and Income Database (WID ). Globalisation is measured by the KOF index of globalisation. Static and dynamic panel model results show that the top income shares increased more under right wing governments than under left wing governments. The ideology‐induced effect was stronger when globalisation proceeded more rapidly. Globalisation was positively correlated with income shares of the upper‐middle class (P99–P90), but negatively with income shares of the rich (top 1%) in the overall sample. We show that the relationship differs between Anglo‐Saxon countries and other OECD countries. Globalisation was more pro‐rich in Anglo‐Saxon countries than in other OECD countries. Government ideology does not turn out to have a statistically significant effect on top income shares in Anglo‐Saxon countries after the 1980s, whereas ideology‐induced differences in the distributional outcomes continued in other OECD countries.     

The rise of dollar credit in emerging market economies and US monetary policy

This paper examines the hypothesis that the boom in dollar credit in emerging market economies (EMEs) is associated with an excessively low interest rate in the US. For this purpose, we use a multivariate correlated unobserved component model that allows for correlation between shocks to dollar credit, cross‐border interest rate gaps—measured as the difference between emerging market interest rate and the US interest rate, and dollar index both in the short run and in the long run. In addition, it also provides us a quantitative estimate of the permanent and transitory movements in dollar credit in EMEs, interest rate gaps and dollar index. The results from this model do suggest that a temporary increase in interest rate gaps and decline in the dollar index are associated with a temporary increase in the dollar credit in EMEs with a very high degree of correlation. The estimate of the cyclical component of the dollar credit in EMEs from our model captures the recent boom and bust in this market and compares favourably to alternative trend–cycle decomposition methods.     

The role of interdependent self-construal in consumers’ susceptibility to retail salespersons’ influence: A hierarchical approach

Based on a sample of 300 consumers, this paper develops and tests a hierarchical model that examines the effect of interdependent self-construal on consumers’ susceptibility to salespersons’ influence. Structural equation modeling shows that the relationship between the two constructs is mediated by several situational factors via two prediction paths. Along one path, interdependent self-construal positively affects consumers’ susceptibility to interpersonal influence, which is positively connected to consumers’ susceptibility to salespersons’ influence through the mediation of consumers’ susceptibility to store atmosphere influence. Along the other path, interdependent self-construal is positively correlated with public self-consciousness, which is then positively associated with consumers’ susceptibility to salespersons’ influence. Discussions on theoretical, practical and future research implications are provided.     

Writing the differences: Poststructural ist pluralism,retextualization, and the construction of reflexive ethnographic narratives in consumption and market research

Representing social realities in a narrative form is central to the interpretive processes by which market‐oriented ethnographies are constructed. In recent years, the process of textualization has shifted from a taken‐for‐granted aspect of the ethnographic enterprise to a central focus of ethnographers’ reflexive considerations. This shift reflects the realization that textualization poses dilemmas of representation that can not be resolved through additional fieldwork or other methodological procedures. This paper addresses these workbench problems by devising an alternative narrative formretextualization‐based on a poststructuralist version of critical pluralistic analysis. We first discuss how non‐realist genres of ethnographic writing have emerged in response to a heightened sensitivity toward ideological positions embedded in research narratives. We then discuss how the use of retextualization can facilitate the development of reflexivity in consumption research by destabilizing the representational authority of the ethnographic text through expressions of divergence, dissensus, and contested interpretations.     

The role of economic and normative signals in international prosocial crowdfunding: An illustration using market orientation and psychological capital

Entrepreneurs in emerging nations are increasingly seeking microloans on international crowdfunding platforms composed of prosocial lenders primarily seeking non-monetary returns. Drawing on signaling theory, we posit that economic signals (as illustrated by market orientation) and normative signals (as illustrated by psychological capital) embedded within borrower narratives will influence funding time. A Computer-Assisted-Text-Analysis (CATA) of 130,964 profiles across 49 countries suggests that borrower cues of customer orientation, competitor orientation, long-term focus, profitability focus, confidence, and optimism are positively associated funding time, while cues of coordination, hope, and resilience are negatively associated with funding time. Prosocial lenders seem less inclined to lend to borrowers that exhibit a desire for economic success or normative expectations for positive outcomes in the future, while they seem to lend more rapidly to those exhibiting current hardship or a concern for people. A discussion of these findings and their implications for poverty alleviation concludes the study.     

The Influence of Confucian Ethics and Collectivism on Whistleblowing Intentions: A Study of South Korean Public Employees

The current study presents the findings of an empirical inquiry into the effects of Confucian ethics and collectivism, on individual whistleblowing intentions. Confucian Ethics and Individualism–Collectivism were measured in a questionnaire completed by 343 public officials in South Korea. This study found that Confucian ethics had significant but mixed effects on whistleblowing intentions. The affection between father and son had a negative effect on internal and external whistleblowing intentions, while the distinction between the roles of husband and wife had a positive effect on those intentions. The effects of collectivism were also different depending on the specific types of collectivism. Horizontal collectivism had a positive effect on both types of whistleblowing intentions, whereas vertical collectivism did not show any significant effects on whistleblowing intentions. These results indicate that cultural traits such as Confucian ethics and collectivism may affect an individual’s whistleblowing intentions in degree and direction, making blanket predictions about cultural effects on whistleblowing difficult.     

Ethnic ties, location choice, and firm performance in foreign direct investment: A study of Taiwanese business groups FDI in China

This paper examines ethnic ties and their impact on FDI location choice and firm performance. Drawing on social network theory and using data from 88 Taiwanese business groups, the study tests the impact of ethnic ties on firm FDI location choice and performance outcomes in China. Results show that ethnic ties of top managers matter in facilitating firm FDI location choice. In contrast to our expectations however, ethnic ties do not help to improve firm performance in China. Implications of these results are discussed in view of existing literature and future research opportunities are delineated.