Does founder ownership affect foreign investments? Evidence from India

We study the effect of founder ownership on foreign investments for Indian firms. We show that foreign investors underinvest in firms with higher level of founder ownership, since these firms are more vulnerable to information problems and expropriation risk. This effect is particularly stronger when founder ownership exceeds a threshold beyond which founders hold effective control on firms. We exhibit that information problems are the main cause of the relation between foreign investments and founder ownership. This is because the relationship is more pronounced in case of business group firms and firms that are engaged in more earnings management.     

Does ownership type matter for innovation? Evidence from China

According to the institution-based view, ownership type is a key variable affecting environment-strategy configurations. This study configures the mechanism in which ownership types (as an institutional factor) moderate the effect of innovation strategies on firms' innovation performance. An empirical analysis was conducted on Chinese hi-tech manufacturing firms, using information related to the innovation activities of 303 firms. The empirical results suggest that ownership type affects the positive relationship between three sources of innovation (internal R&D activities, partnering with alliance partners, and partnering with universities) and innovation performance, as well as the negative relationship between external contracting and innovation performance (product or process innovation). The results imply that organizations doing business in China must be aware of the business environment that they intend to enter, especially if the intention is to develop new products or innovate current business processes.     

Does the devil wear Prada? Luxury product experiences can affect prosocial behavior

Despite the explosive growth of luxury consumption, researchers have yet to examine how the experience of using luxury products affects us both psychologically and behaviorally. In this research, we explore how the experience of using a luxury product can alter a user's perceptions of themselves and their behavior toward other people. We gave women either a luxury product (e.g., Prada handbag) or a non-luxury product (e.g., unbranded handbag) to use, and afterwards, we presented women with opportunities to exhibit either selfish or generous behaviors toward others. We found that, after using a luxury product, women exhibited more selfish behavior, such as sharing fewer resources with others and contributing less money to charity than women who used a non-luxury handbag. We also found this pattern can be reversed, with luxury users exhibiting more generous behavior when the generous behavior can be performed in front of other people. Further, we show that these patterns of selfish and generous behaviors are mediated by changes in perceived status and superiority that are triggered when women experience using a luxury product.     

When does an ethical attribute matter for product evaluation? The role of warm-glow feelings for low-rated products

Research on the effects of ethical attributes has recently gained traction. However, limited research has addressed consumer response to ethical attributes in the current context where product ratings have become of primary importance to make decisions. Specifically, this study examines the relative effect of ethical attributes on product evaluations across different product ratings. Building on cue consistency theory and the negativity bias, we suggest that ethical attributes gain weight when consumers evaluate a low-rated product. This process leads consumers to anticipate more warm-glow feelings, generating better evaluations for such low-rated products featuring an ethical attribute (vs. another type of attribute). Two experiments provide consistent empirical support for this prediction, and demonstrate that, compared to other attributes or no attribute, an ethical attribute increases product evaluations to a larger extent when the product received low (vs. higher) ratings. We show that this effect occurs because of warm-glow feelings: when product ratings are low, consumers anticipate more warm-glow feelings from purchasing a product with an ethical attribute (vs. another type of attribute), leading to better product evaluations. These findings have direct managerial and ethical implications for practitioners.     

Does product involvement drive consumer flow state in the AR environment? A study on behavioural responses

Understanding consumers’ behavioural responses is crucial to improve the usage of augmented reality (AR) by retailers. Both in the online and offline retail market, AR enhances consumers’ shopping experiences by offering them enjoyable and immersive information about products and services. This paper explores consumers' behavioural responses by measuring the role played by product involvement in affecting the AR flow experience. To this end, the study employs a quantitative approach based on data collected from August to September 2022. Results show that consumers' involvement with products affects their AR flow experience, along with their behavioural intentions in terms of purchase intention and intention to visit the retailer’s website and recommend or share the experience. In addition, the latter two variables mediate the relationship between the AR flow experience and loyalty, showing interesting insights on high-body-involvement products. The paper ends by highlighting the main theoretical and managerial implications of these results, along with the scope for further research.     

Does service intangibility affect entrepreneurial orientation?

Service firms face a unique set of challenges in their internationalization and foreign market growth. Their services' characteristics, particularly intangibility, constrain the options available to them for growth. When such firms are services International New Ventures (INVs), their challenges are combined with those related to rapid internationalization and growth. This research investigates how service intangibility and the typical challenges of INVs relate to the firms' Entrepreneurial Orientation and their foreign market growth. The findings show that indeed service intangibility has a relationship with firm proactiveness, risk-taking, and innovativeness; and that not all elements of Entrepreneurial Orientation have a positive impact on growth.     

Does globalisation affect the shadow economy?

We investigate the impact of globalisation on the shadow economy using panel data for 119 countries. Our evidence suggests that globalisation matters in mitigating shadow development. More specifically, we find that political globalisation reduces the shadow economy, whereas economic and social globalisations have limited statistical support after controlling for important factors that affect the size of the shadow economy. Overall, these results are robust after accounting for an alternative measure of the shadow economy, outliers, endogeneity and alternative model specifications.     

Does governing law affect bond spreads?

Controlling for bond and issuer characteristics, bond spreads are expected to be equal across different legal jurisdictions, and differences are expected to disappear through arbitrage. However, an analysis of 490 U.S. dollar–denominated bonds issued by 53 emerging market sovereigns during 1990–2015 reveals that after the financial crisis of 2008, launch spreads of sovereign bonds issued under U.K. law have been higher than those issued under U.S. law, by 130 basis points for BB+ bonds and 175 basis points for B− bonds. This effect was not significant for investment grade bonds. On average, bonds issued under U.K. law had weaker ratings and shorter tenors post-crisis. The post-crisis impact of governing law on sovereign bond spreads is not explained by collective action clauses, or first-time bond issuances. Instead, the difference seems to be related to the perception that U.S. law offers stronger investor protection, and that the investor base for bonds issued under U.S. law is larger than that for bonds issued under U.K. law. The difference in spreads persists in the secondary market even after 180 days, perhaps because of the lack of liquidity, as investors tend to buy and hold these more attractive bonds on a longer-term basis.     

The extension of animosity model of foreign product purchase: Does country of origin matter?

Although a growing literature has investigated how animosity and consumer ethnocentrism change customers’ perceptions of foreign products in developed markets, research examining these effects in developing markets is scarce. Additionally, the role of country of origin on such effects has received far less attention. The current paper is developed to bridge these gaps. The primary objectives of this paper are to examine whether the animosity and consumer ethnocentrism models that work in the Western world could be applied into a developing market like Vietnam, and whether these relationships are moderated by country of origin (USA versus China). Data from 485 Vietnamese customers illustrate that most of the main effects are significant except for the relationship between ethnocentrism and product judgement, and the relationship between cosmopolitanism and willingness to buy. Furthermore, out of the three moderation effects, the influence of country of origin on the relationship between ethnocentrism and willingness to buy is significant. The paper concludes with theoretical and managerial implications, limitations, and future research.     

How does face influence the purchase of imitative new products? Moderating roles of product design characteristics

Face plays a profound role in consumption, but the question of how it impacts the purchase of imitative new products remains unanswered in the current literature. Imitative new products, which are legitimate innovations bearing similarities to existing products, are prevalent in many markets. This study investigates how two dimensions of face consciousness—the desire to gain face and the fear of losing face—influence consumers' purchase intentions regarding imitative new products by considering three product design characteristics (new product imitation locus, new product imitation scope, and product hedonism) as boundary conditions. We find through experiments carried out with adult Chinese consumers that the desire to gain face strengthens, but the fear of losing face weakens purchase intention. Moreover, the positive effects of the desire to gain face are weakened by imitation locus (form vs. function imitation) but enhanced by imitation scope (either form or function imitation vs. both form and function imitation); whereas the negative effects of the fear of losing face are strengthened by imitation locus but weakened by imitation scope. Product hedonism enhances the positive effects of the desire to gain face and augments the negative effects of the fear of losing face. This study thus contributes to the face literature by differentiating the roles of two dimensions of face consciousness in affecting consumption of imitative new products. In addition, this study contributes two important constructs—new product imitation locus and new product imitation scope—to the literature on imitative new products.     

Does banner advertising affect browsing for brands? clickstream choice model says yes, for some

This paper investigates how exposure to Internet display advertising affects the subsequent choices users make of brand-specific pages to view within a website. Using individual-level clickstream data from a third-party automotive website, we tracked the web pages selected by users as they browsed the site and their exposures to premium placement display ads for different vehicle makes (e.g., Ford, Toyota). Pages on the site were classified into those that displayed information about a specific vehicle make (a ??make page??) versus those that did not (a ??non-make page??). For each ??make-page?? viewed, the specific automotive make selected (e.g., Ford, Toyota) was also recorded. We use these data to develop a model of users?? make-specific page choices as a function of prior banner ad exposure on the site. Consumer heterogeneity is captured using a Bayesian Mixture approach. We find that banner ads influence subsequent choices of which make-specific pages to view for ads, served during the current browsing session but not for ads served in previous sessions. The effect of banner ads is also segmented: users in one segment (54%) reacted positively, users in a second segment (46%) were not influenced. Using a standard continuous approach to heterogeneity, we would have concluded?Cincorrectly?Cthat banner advertising has no effect on the subsequent selection of make-specific pages. For the positively reacting segment, we estimate that the elasticity of make-page choice with respect to banner ad exposure is just under 0.2. Users in this segment appear less focused in their site browsing behavior and tend to stay longer than users in the non-reacting segment.     

Does new product growth accelerate across technology generations?

The academic literature on the growth acceleration of new products presents a paradox. On the one hand, the diffusion literature concludes that more recently introduced products show faster diffusion than older ones. On the other hand, technology generation literature argues that growth rate, at least as measured by diffusion parameters, remains constant across generations. We resolve this apparent paradox by testing whether growth acceleration occurs across technology generations while controlling for the passing of time. We check acceleration across 39 distinct technology generations in 12 product markets. The results show that intergeneration acceleration occurs in time to takeoff but not with respect to diffusion parameters (i.e., p and q). We show that takeoff acceleration is mostly driven by technology vintage (i.e., the passage of time) rather than generational shifts. Thus, time is a factor that accelerates early growth, but generational shifts do not. This result also holds when controlling for the effects of market vintage when the market is either business-to-business or business-to-consumer as well as when the technology is process- or product-based.     

Does share pledging affect firms' use of derivatives? Evidence from China

We investigate whether share pledging by controlling shareholders affects firms' use of derivatives. Our findings suggest that share-pledging firms are more likely to use derivatives than non-share-pledging firms. In cross-section analyses, we observe that the relationship is more pronounced when the margin call risk is higher, for example, if controlling shareholders own fewer shares, firms are located in regions with higher levels of marketization, or firms have a higher stock price crash risk. Our findings indicate that shares pledged by controlling shareholders steer firms toward the use of derivatives to hedge firm activities and alleviate the margin call risk.     

Longing for the past and embracing the new: Does nostalgia increase new product adoption?

Existing research has mostly focused on the salutary impact of nostalgia on nostalgia-related products (e.g., childhood products, classic brands). The current research examines whether this effect can extend to nostalgia-unrelated products: new products. We demonstrate that nostalgia fosters social support, which in turn encourages consumers to adopt new products, and this effect is weakened when individuals have independent self-construal. Three studies provide support for these predictions. Study 1 revealed that nostalgia increases new product adoption. Study 2 demonstrated that this positive effect of nostalgia on new product adoption is mediated by social support. Study 3 showed that this salutary effect occurs only when consumers’ interdependent self is activated. The marketing implications of these findings are discussed.

     

Does perception matter?: an empirical analysis of donor behaviour

This article provides the first empirically based marketing model of the perceptions of givers and the resulting impact on donations. Within nonprofit marketing there is a considerable amount of extant research to support the view that both extrinsic and intrinsic variables can be used to separate givers and non-givers to charities. However, they are less useful in explaining how individuals select between the charitable alternatives and in understanding how people determine and apportion support. Perceptual factors offer more utility in this regard. Structural equations models are presented based on a survey of over 2,300 active and lapsed donors that link a series of perceptual determinants to four relevant charity performance measures: the total amount given to charity, the number of gifts given, the giving lifetime between the individual and the charity, and the amount given yearly. Marketing management implications are identified.     

Does consumers' personal reciprocity affect future purchase intentions?

In this study, we examine the mediating role of a consumer's personal reciprocity in the relationships between brand trust, brand loyalty and product familiarity, and future purchase intentions. Data from 308 printer users in Hong Kong reveals that a consumer's personal reciprocity partially mediates the relationships between brand trust and brand loyalty, and future purchase intentions. The theoretical implication is that personal reciprocity not only enhances consumers' future purchase intentions but also provides an alternative path linking brand trust and brand loyalty to consumers' future purchase intentions. The managerial implication is that by capitalising on a consumer's personal reciprocity in the context of consumer-firm relationships, firms can improve their performance in retaining existing customers.     

Does health reform affect self-employment? Evidence from Massachusetts

This paper evaluates whether the implementation of the 2006 Massachusetts health reform law affected the decision of taxpayers to be self-employed, using both difference-in-differences and synthetic control methods on a panel of tax returns that spans 1999–2010. Though tenuous, our results suggest that the reform led to a decline in the rate of taxpayers earning a majority of income from self-employment. In addition, it appears to have had a positive impact on earning some self-employment income among joint filers and earning the majority of income from self-employment among older taxpayers, but these were offset by negative impacts on single filers and taxpayers age 35–49.     

Does economic globalisation affect income inequality? A meta-analysis

A large volume of econometric literature has studied the impact of economic globalisation on income inequality around the world. However, reported econometric estimates vary substantially, which makes it difficult to draw valid conclusions. This paper presents a quantitative summary and analysis of existing estimates regarding the globalisation–inequality relationship. We use a new data set consisting of 1,254 observations from 123 primary studies. By applying meta-analysis and meta-regression methods, we obtain several main findings. First, globalisation has a (small-to-moderate) inequality-increasing effect. Second, while the effect of trade globalisation is small, financial globalisation shows a more sizeable and significantly stronger inequality-increasing impact. Third, we find an average inequality-increasing impact of globalisation in both advanced and developing countries. Fourth, education and technology moderate the impact of globalisation on income inequality.