THE PROPOSED INTRODUCTION OF FUTURES‐STYLE MARGINING IN THE UNITED STATES: AN AUSTRALIAN COMPARISON

We extend the quadratic approximation method to examine American‐style options traded using futures‐style margining and show that an early exercise premium can exist when the cost of carry is negative. Empirical results based on a reduced form of the model using futures‐style call options traded on the Australian All Ordinaries Share Price Index are consistent with previous research: call option early exercise premiums are economically zero. Full option prices are examined by comparing observed futures‐style with theoretical stock‐style values. We find futures‐style values exceed stock‐style values and argue that the increase results from improvements in liquidity. The findings are particularly relevant given the pending decision at the Commodity Futures Trading Commission to introduce a futures‐style system in the United States. JEL classification: G13, C13     

The Effects of Negatively Valenced Emotional Expressions in Online Reviews on the Reviewer,the Review,and the Product

The authors examine the effects of negatively valenced emotional expressions (NVEE; e.g., intense language, all caps, exclamation points, emoticons) in online reviews and reveal important boundary conditions for their effects. Specifically, Study 1 showed that NVEE directly promote review helpfulness and damage attitude toward the product when used by experts. In contrast, for novices, their use of NVEE was considered a poor reflection on them and failed to directly affect attitude toward the product. Further, attributions of reviewer rationality and trustworthiness were positively associated with review helpfulness and attitude toward the product. Interestingly, language complexity is a trigger to reverse the effects, as found in Study 2. For novices (experts), the adverse effect on trustworthiness is eliminated (introduced) but the adverse effect on attitude toward the product is introduced (eliminated) when they include more complex language accompanied by NVEE in their online reviews. Both studies uncover when source discounting is active for experts and novices, making them equally influential in some cases. Theoretical and managerial implications are provided.     

Retail internationalization and retail failure: issues from the case of Marks and Spencer

Notwithstanding the importance of retailing to urban economies, the role of retailing in the marketing of urban places has been an area neglected by both academics and practitioners alike. It is acknowledged that the principles of marketing can be applied (albeit with modification) to the context of urban places. The theoretical implications of this are considered using Corsico's () metaphors of the city as enterprise, market and commodity. Such issues are considered via a survey of place marketing actors within the specific context of the marketing of towns and cities as shopping destinations in urban places classified as sub-regional and above. Particular attention is paid to responsibility for the marketing of the retail provision, the emphasis given to retail in the marketing/promotional activities of various urban stakeholders, the perceived role of retailing, and the factors influencing the nature of the urban retail provision. Promotion of retailing was found to be important for all urban stakeholders to a greater or lesser degree. However, prime responsibility lay with town centre managers and shopping centre managers. The implications for both theory and practice are discussed.     

Retail Image as Seen through Consumers' Eyes: Studying International Retail Image through Consumer Photographs of Stores

Abstract

The aim of this article is to explore how retail store image is perceived by consumers from different cultural backgrounds and with different degrees of awareness and experience of the retailer. The subject is IKEA, a retailer recognized as having a global approach to the markets in which it operates, resulting in a highly standardized approach to store branding. However, rather than employing traditional methodologies to elicit consumer perceptions of store image, we attempt to capture consumer perceptions through interpretations of the visual images generated by the participants themselves. The photo-elicitation method employed captured the different interpretations and meanings attached to commonly identified elements of store image and reinforced the central role played by the store itself in retail image formation.     

The effect of bid withdrawal in a multi-object auction

The Federal Communications Commission currently utilizes a simultaneous multi-round ascending bid auction to allocate Personal Communication Services licenses. In the auction, participants are allowed to withdraw standing bids at a penalty. The penalty is equal to the maximum of zero or the difference between the value of the withdrawn bid on a license and the highest bid after the withdrawal on that license. The withdrawal rule is designed to assist bidders wishing to assemble combinations of licenses who find themselves stranded with an assortment of licenses for which their bids sum to more than their value. This paper reports results of experiments that examine the effect of the withdrawal rule in environments in which losses can occur if packages of licenses must be assembled piecemeal. The experiments demonstrate that there is a tradeoff with using the rule: efficiency and revenue increase, but individual losses are larger. Furthermore, the increased efficiency does not outweigh the higher prices paid so that bidder surplus falls in the presence of the withdrawal rule. Received: 10 October 1997 / Accepted: 10 September 1998     

Indirect tests of the Haugen-Lakonishok small-firm/January effect hypotheses: window dressing versus performance hedging

Equity mutual fund data from 1976–1993 is used to test hypotheses that distinguish window dressing from performance hedging. No significant difference is found pre/post 1983 in the number of funds choosing non-December fiscal year ends or in the percentage of dollars invested when comparing December/non-December fiscal year ends. Significant differences are found in both January returns for mutual funds with December/non-December fiscal year ends and in one month returns for funds with/without a fiscal year end in the previous month. Therefore, if the small-firm/January effect is portfolio manager related, performance hedging, not window dressing, is the more probable source for the “excess” returns.     

Mining external R&D

Open Innovation presses the case for timely and thorough intelligence concerning research and development activities conducted outside one’s organization. To take advantage of this wealth of R&D, one needs to establish a systematic “tech mining” process. We propose a 5-stage framework that extends literature review into research profiling and pattern recognition to answer posed technology management questions. Ultimately one can even discover new knowledge by screening research databases.Once one determines the value in mining external R&D, tough issues remain to be overcome. Technology management has developed a culture that relies more on intuition than on evidence. Changing that culture and implementing effective technical intelligence capabilities is worth the effort. P&G's reported gains in innovation call attention to the huge payoff potential.