Does Service Employees’ Appearance Affect the Healthiness of Food Choice?

Derived from previous research on social influence on food consumption and social comparison theory, this article examines the effect of service employees’ appearance on consumers’ food choice using an experimental study, involving a video manipulation and eye‐tracking technique. The video shows a menu being proffered by a waitress whose degree of apparent healthiness varies (healthy, overweight, unhealthy lifestyle). The menu contains both healthy and unhealthy meal alternatives. The analysis of participants’ eye movements demonstrated that exposure to the overweight employee did not stimulate greater (i.e., earlier or longer) attention to unhealthy meal alternatives, whereas exposure to the employee who displayed an unhealthy lifestyle did. These findings have social and managerial implications: The postulated stigma according to which the presence of overweight others encourages unhealthy eating appears questionable. Service providers that might secretly hire according to body weight have no grounds to do so. In contrast, employees signaling an unhealthy lifestyle through their style choices prompt patrons to pay more attention to unhealthy meal alternatives. Food service providers might want to take this factor into consideration and actively manage the aspects that can be altered by simple measures.     

How Does the Largest Shareholder Affect Dividends?

Focusing on the legal protection of minority shareholders in Japan, which suggests that manager‐owned firms are better governed than corporation‐owned firms, this study presents a new test of two dividend models: the substitute model and the outcome model. In support of the latter, I find that manager‐owned firms pay higher dividends than corporation‐owned firms. The paper also examines the association between ownership by the largest shareholder and dividend payments. I find an inverted U‐shaped relationship for manager‐owned firms and a U‐shaped relationship for corporation‐owned firms between them. These results can be explained by the benefits and drawbacks of concentrated ownership.     

Does the Type of Family Control Affect the Relationship Between Ownership Structure and Firm Value?

Our objective is to disentangle which family business characteristics enable family ownership to be an effective corporate governance mechanism. To this aim, we investigate whether the relationship between ownership concentration and firm value is moderated by the type of family influence. This study shows that family control positively affects performance, primarily when family members serve on the board and when the founder is still influential. Our findings hold when we control for the general blockholder effect and they are robust to a battery of tests. We conclude that the impact of ownership concentration on firm value differs across family firms.     

How Do Price Perceptions of Different Brand Types Affect Shopping Value and Store Loyalty?

This research investigates the relationships among price perceptions for different brand types (national brands, standard store brands, regional store brands, organic store brands), shopping value dimensions (quality, price, social, and emotion value), and store loyalty (retention and word of mouth (WOM)). A comprehensive model depicts determinants of customer store loyalty. Using structural equation modeling, the model test includes 671 consumers intercepted during shopping trips. The data analysis yields several surprising results. In particular, low product price perceptions do not necessarily signal negative store quality evaluations. Shopping value dimensions influence store retention loyalty and WOM behavior differently. Furthermore, different brand types exert distinct effects on the value creation process. Favorable prices for national and standard store brands have comparable positive effects on store price value and emotional value creation; appealing prices of regional store brands instead reduce the emotional value of the store, and low prices for organic store brand products significantly increase social value creation.     

How Do Ownership Concentration and Family Control Affect R&D Investments? New Evidence from Taiwan

This study finds a nonlinear relationship between ownership concentration and R&D investments. Specifically, ownership concentration is positively related to R&D investments at a low level of ownership concentration; the relationship becomes negative when ownership concentration is at a high level. However, the impact of ownership concentration on R&D investments is lessened in family‐controlled firms; that is, family control moderates the relationship between ownership concentration and R&D investments. Overall, this study suggests that the ownership concentration's nonlinear impact on R&D investments differs between family‐controlled firms and nonfamily‐controlled firms.     

How Does Race and Ethnicity Affect Persistence in Immature Ventures?

Does race/ethnicity affect persistence in an immature venture? Using data from the Panel Study of Entrepreneurial Dynamics II, we examine how race/ethnicity, access to supplier credit, and personal financial investment affect three entrepreneurial outcomes: continued engagement, new firm creation, and disengagement. We find that compared with whites, blacks were less likely to receive supplier credit and invest more of their own capital, whereas Hispanics did not significantly differ from whites. Blacks were more likely to persist and remain engaged in an immature venture if they did not achieve success after two years in operation, whereas Hispanics were more likely to disengage.     

Do Product and Consumer Characteristics Affect the Relationship Between Online Experience and Customer Satisfaction?

ABSTRACT

This study utilizes a survey to understand how relevant product and consumer characteristics affect the relationship between online experience and satisfaction. Results indicate that Web shoppers' satisfaction is strongly affected by a superior online experience if they have no prior experience with the purchased brand, they are purchasing a high priced product, and their general attitudes toward online shopping are not very favorable. Further, the relationship between online experience and satisfaction was found to be stronger for females as compared to males.     

How Does Foreign Entry Affect the Domestic Banking Market? The Brazilian Case

ABSTRACT

Using bank level data for Brazil in the 1995–2001 period, this paper examines the extent of foreign ownership in the domestic banking market. It also separates and analyses the domestic banking system as to private and state-owned institutions, given the almost 50% market share of state-owned banks in Brazil by the deposit criteria. The net interest margins, overhead, taxes paid, and profitability of foreign and domestic banks are compared with domestic banks achieving higher profits than foreign banks, which contradicts the empirical evidence in the literature. Also, further estimation results suggest that an increase in the share of foreign banks leads to higher profitability of domestic banks, which is opposed to the literature. Finally, while domestic private banks have higher net interest margins and profits than foreign banks, state-owned banks have lower net interest margin and profits, and higher overhead expenses than foreign banks.

RESUMEN. Con base en datos bancarios brasileños del período 1995–2001, este documento examina la extensión de la titularidad extranjera en el mercado de la banca doméstica. También separa y analiza el sistema de la banca doméstica en instituciones privadas e instituciones estatales, con base en la participación superior al 50% del mercado de los bancos estatales en el Brasil, en lo que se refiere al volumen de los depósitos. Se han comparado los márgenes del interés neto, gastos generales, intereses pagados y rentabilidad de los bancos extranjeros y domésticos, llegando a la conclusión que los bancos domésticos alcanzaron mayores niveles de rentabilidad que los bancos extranjeros, lo que–empíricamente hablando–contradice la evidencia de la literatura. Además, otros resultados de las proyecciones realizadas sugieren que un aumento en la participación de los principales bancos extranjeros redundará en la mayor rentabilidad de los bancos domésticos, lo que también es contrario a lo expresado en la literatura. Finalmente, mientras que la banca doméstica privada tiene mayores márgenes de interés netos y rentabilidad que los bancos extranjeros, los bancos estatales tienen un margen neto y una rentabilidad menores y mayores gastos generales que los bancos extranjeros.

RESUMO. Utilizando dados bancários do Brasil, no período de 1995 a 2001, este artigo analisa a extensão da propriedade estrangeira no mercado bancário nacional. Além disso, examina o sistema bancário nacional e distingue entre instituiç[otilde]es privadas e públicas, considerando-se a parcela de quase 50% do mercado de bancos estatais, no Brasil, segundo o critério de depósitos. Comparam-se as margens de intermediação financeira, as despesas administrativas, os impostos pagos e a rentabilidade de bancos estrangeiros e nacionais, sendo que os bancos nacionais alcançam lucros mais altos do que os bancos estrangeiros, contradizendo a evidência empírica apresentada pela literatura. Além disso, outros resultados avaliados sugerem que um aumento da participação de bancos estrangeiros acarreta maior rentabilidade para os bancos nacionais, contrariando a literatura. Finalmente, enquanto os bancos privados nacionais apresentam margens líquidas de juros e de lucros mais elevadas do que os bancos estrangeiros, os bancos estatais apresentam margens de intermediação financeira e de lucros mais baixas e despesas administrativas mais altas do que os bancos estrangeiros.     

How Does Corporate Governance Affect Loan Collateral? Evidence from Chinese SOEs and Non‐SOEs

We examine the effect of corporate governance on the collateral requirements for firms' bank loans in China. We find that firms with lower excess control rights and other large shareholders face lower collateral requirements, which is more pronounced in non‐state‐owned enterprises (SOEs) than in SOEs. Regarding board characteristics, we find that smaller board size, more independent directors, separation of the positions of CEO and chairman, and larger supervisory board size can reduce a firm's use of collateral; the effect of all the preceding characteristics is more pronounced in SOEs. Overall, our research suggests that, in China, corporate governance structures are able to affect bank‐lending decisions in respect of collateral requirements and that the influence depends on the controlling shareholder type and associated agency problems.     

Does and How Does Globalisation Matter at the Industry Level?

In this paper we develop a concept of globalisation at the micro level defined as the exposure of a productivity follower industry in one country to the productivity leader in another country. Globalisation is measured by the intensity of contacts through trade and foreign direct investment. In a simple model and empirically we show that the exposure of a productivity follower to competition with the leader is highly correlated with the productivity gap of this industry. Competition restricted to one region such as Europe, or North America, or the Far East, is not sufficient to achieve highest productivity levels. Moreover, it turns out that foreign direct investment (FDI) has a weight in the globalisation index at least equal to trade. FDI can contribute directly to higher levels of domestic productivity by transferring the best production practices, and put pressure on other domestic producers to improve. The impact of trade on globalisation can be weakened by tariffs and non‐tariffs.     

Does Religion Affect the Materialism of Consumers? An Empirical Investigation of Buddhist Ethics and the Resistance of the Self

This paper investigates the effects of Buddhist ethics on consumers’ materialism, that is, the propensity to attach a fundamental role to possessions. The literature shows that religion and religiosity influence various attitudes and behaviors of consumers, including their ethical beliefs and ethical decisions. However, most studies focus on general religiosity rather than on the specific doctrinal ethical tenets of religions. The current research focuses on Buddhism and argues that it can tame materialism directly, similar to other religions, and through the specific Buddhist ethical doctrines of the Four Immeasurables: compassion, loving kindness, empathetic joy, and equanimity. The empirical results show the following: (1) Buddhism reduces materialism directly and through some of the Four Immeasurables, and (2) despite the doctrine of non-existence of the self, positive emotions toward the self are still present, and the self absorbs the effects of Buddhist ethics on materialism. The latter finding suggests a “resistance of the self” that is coherent with the idea of a consumer who leverages the self to go beyond it.     

Following the Crowd—Does Crowdfunding Affect Venture Capitalists’ Selection of Entrepreneurial Ventures?

Given the increasing popularity of crowdfunding as a new means to finance entrepreneurial ventures, we assess whether and how crowdfunding campaign‐specific signals that affect campaign success influence venture capitalists’ selection decisions in ventures’ follow‐up funding process. Our study relies on cross‐referencing a proprietary data set of 56,000 crowdfunding campaigns that ran on Kickstarter between 2009 and 2016 with 100,000 investments in the same period from the Crunchbase data set. Drawing on signaling theory and the microfinance literature, our empirical findings reveal that a successful crowdfunding campaign leads to a higher likelihood to receive follow‐up venture capital (VC) financing, and that there exists an inverted U‐shaped relationship between the funding‐ratio and the probability to receive VC funding. Further, we find statistical evidence that an endorsement by the platform provider has a likewise positive impact on the receipt of VC. Contrary to our expectations, word‐of‐mouth volume seems to be a negligible factor when it comes to follow‐up VC financing. Our results support the view that crowdfunding signals are factored into the VC’s funding decision in order to evaluate the potential of entrepreneurial ventures.     

How Does Corporate Social Responsibility Affect Corporate Continuous Innovation?

From the perspective of sustainable development, this paper analyzes the impact of corporate social responsibility (CSR) on the corporate continuous innovation based on the theory of innovation economics and the demand for innovationdriven development, and then conducts a series of empirical tests based on a sample of Chinese A-shared listed companies from 2008 to 2016. The results show that better CSR performance is conducive to the continuous innovation, and this positive relationship is more pronounced for firms with voluntary accounting information disclosure, for firms of non-high-technology industries, and when policy uncertainty is high. This paper not only enriches the literature on CSR but also provides theoretical references for the innovation practice of enterprises under the innovation-driven strategy.     

Does Globalisation Affect Crime? Theory and Evidence

Globalisation sceptics argue that trade liberalisation has high social costs, including an increase in expropriative behaviour such as civil conflict, coercion of labour and crime. We show that a theoretical relationship between trade and expropriation exists, but the sign differs for developed and developing economies. We verify this empirically using data on crime rates. Specifically, we find that trade liberalisation, as measured by both higher openness and lower import duty rates, tends to increase burglaries and theft in very labour‐abundant countries. For other countries, however, we find that trade liberalisation has either a small negative effect on crime or no effect, depending on the country's capital abundance.     

Monitoring Intensity and Stakeholders’ Orientation: How Does Governance Affect Social and Environmental Disclosure?

The aim of the paper is to investigate the effects of the corporate governance model on social and environmental disclosure (SED). We analyze the disclosures of the 100 U.S. Best Corporate Citizens in the period 2005–2007, and we posit a series of simultaneous relationships between different attributes of the governance system and a multidimensional construct of corporate social performance (CSP). We consider both the extent and the quality of SED, with the purpose of identifying increasing levels of corporate commitment to stakeholders and shedding some light on whether SED is used as a signal or rather as a legitimacy tool. Our empirical evidence shows that the stakeholders’ orientation of corporate governance is positively associated with CSP and SED. On the other hand, we do not find support for the monitoring intensity of corporate governance being negatively associated with social performance. We also find that CSP in the “product” dimension is positively associated with the extent and quality of SED whilst CSP in the “people” dimension is negatively associated with the extent and quality of SED. At a time when shareholders and stakeholders share more common aspects in their relationships with firms, this is a significant area to explore and this research fills an important lacuna in this respect.     

How Do the Trans‐Pacific Economies Affect the USA? An Industrial Sector Approach

This paper studies how the Trans‐Pacific region affects the US economy in terms of business cycle transmission. We use a large data set consisting of disaggregated sectoral industrial production indexes from selected countries in the region and employ a factor‐augmented vector autoregression (FAVAR) approach to analyse the transmission of shocks in different industries. We find that a positive output shock in the entire Trans‐Pacific region has positive effects on the majority of US manufacturing sectors. We also find that sectoral shocks in five sectors of the Trans‐Pacific region have a large impact on the overall US economy. Three of the five sectors displayed strong same‐sector responses relative to the overall response, suggesting that vertical production linkages might play a key role in the transmission of shocks. Our results highlight the importance of examining industrial sectors in studying the transmission of shocks in the Trans‐Pacific region.     

Does Consumer Well‐Being Affect Hedonic Consumption?

This article presents a theoretical model that reveals how consumers’ long‐term subjective well‐being (SWB) influences their spending on hedonic products. Using the longitudinal data from a large national panel survey, the study found that consumers’ SWB influences spending on hedonic products via the mediating effects of their positive interpretation of life circumstances and broadened set of activities resulting from positive emotions. The results are explained using cognitive tuning theory and broaden‐and‐build theory and have implications for hedonic products providers in terms of who their target audience is and how demand for their products is generated.