Consuming counterfeit: A study of consumer moralism in China

The consumption of counterfeits is a central theme in understanding consumer moralism. While some studies on marketing have highlighted the consumption motives and socio‐economic factors behind this seemingly unethical phenomenon, research on the subjective experiences of consumers and the cultural concerns about the consumption of counterfeits is lacking. The aim of this article is to gain a better understanding of how consumers construct and negotiate their moralistic identities through engaging in counterfeit consumption. We also examine how consumers utilize counterfeit goods as symbolic resources to echo, or even reproduce, the entrenched Chinese social relationships and marketplace ideological conditions. Our findings suggested that the research participants attempted to make sense of their counterfeit consumption behaviour by infusing the moralistic meanings drawn from the Chinese socio‐cultural value orientation. The study concludes that the moral identity work and counterfeit consumption practices are interwoven in a web of multiple discourses and resources available in the contemporary marketplace under the overarching consumer moralism framework.     

Dangers in data adjustment: the case of rights issues and returns

In this paper we alert researchers to the potential for unrecognised errors in using adjusted price and daily return data. This problem is illustrated by considering the case of ex‐rights price adjustments. We present five alternative adjustment procedures that would be expected to generate similar results. We show, however, that these procedures result in significantly different dilution factors and returns. Our investigations suggest that the problem is associated with the theoretical valuation of the rights. In a substantial proportion of cases, the standard textbook model is inappropriate because of the non‐standard nature of the rights issue. Correcting for these non‐standard cases is a non‐trivial task since they constitute more than half of the issues. The extent of this problem does not appear to be well recognised. Deletion of non‐standard rights issues eliminates extreme values in dilution factors, but statistically significant differences remain. Our moral is simple; uncritical acceptance of data 'as is' from computer data files may lead researchers to erroneous conclusions. It also seems noteworthy that the standard textbook model of rights pricing only applied to a minority of Australian rights issues over recent years. This result has implications for the calculation of EPS under AASB 1027. As a by‐product, our analysis suggests that the ex‐rights daily return is close to zero.     

CEO Hedging Opportunities and the Weighting of Performance Measures in Compensation Contracts

This study examines the rather controversial practice of managerial hedging, which allows CEOs to delink their compensation from stock price performance. We presume that boards are aware of these practices and adjust the weights placed on accounting‐based and stock‐based performance measures in executive compensation contracts to mitigate the problem. Empirically, we find that, in the presence of managerial hedging opportunities, accounting‐based performance measures receive more weight, whereas stock‐based performance measures receive less weight in determining executive compensation. Moreover, these results are more pronounced when managerial hedging needs are high. Regarding the effects of earnings management resulting from accounting‐based incentives, we find that good auditing and strong governance mechanisms strengthen the benefit of placing more weight on accounting‐based performance measures. Taken together, our findings suggest that corporate boards shift the relative weights of performance measures in compensation contracts in response to managerial hedging opportunities, which is consistent with optimal contracting.     

Using the balanced scorecard on supply chain integration performance—a case study of service businesses

Supply chains are indispensable to corporations that seek to serve suppliers and customers better, to boost organization performance, to strengthen competitiveness, and to achieve continuous success. Currently, corporations place great emphasis on both supply chains and on balanced scorecards (BSCs) to develop effective measures to evaluate firm performance. This study discusses the integration of supply chain and performance based on the BSC measures developed by Kaplan and Norton (Harv Bus Rev 71(5):134–147, 1993; Harv Bus Rev 74(1):75–85, 1996) and Brewer and Speh (J Bus Logist 21(1): 79–93, 2000). The research applies case studies and a conceptual framework, modifying propositions accordingly. The main objectives of this study are to discuss the construction and implementation of supply chains, to determine how to handle supply chain barriers and to evaluate supply chain integration performance using the idea of a BSC. Companies at different levels in the supply chain are better served by assigning different levels of importance to different types of integration. Case studies show that supply chain integration involves supplier, internal, and customer barriers. The results of these studies have suggested that integrated supply chains can be dominated by one controlling member, which can be located either upstream or downstream in the chain. A new finding in this study is that varying degrees of supply chain integration are obtained due to corporations’ different positions in an industry. The study provides some insights for firms in the process of implementing a supply chain management system.     

Loss aversion and the term structure of interest rates

This article studies how the loss averse behaviour affects the term structure of real interest rates. Since the pro-cyclical conditional expected marginal rate of substitution, implied from the US consumption data, is consistent with the proposition of loss aversion, we incorporate the loss averse behaviour of prospect theory into the consumption-based asset pricing model. Motivated by the similarity between habit formation and the prospect theory utility, habit formation is exploited to determine endogenously the reference point of this behavioural finance utility. The highly curved characteristic of the term structure of real interest rates can thus be captured by the additional consideration of loss aversion. This model also fits the downward sloping volatility of the real yield curve in the data of US Treasury Inflation-Protection Securities (TIPS). Moreover, depending on the effective risk attitude of the representative agent with the loss averse behaviour of prospect theory, our model is capable of generating a normal or an inverted yield curve.     

Multi-channel store image and the effects on purchase intention

Consumer practices of purchasing goods and services through multiple channels versus a single channel have become common and reflect a change in purchase behaviours. This study identifies six dimensions of the multi-channel store image and proposes that they have positive effects on purchase intention and consumer characteristics moderate the relationship. A survey questionnaire was developed and administered to shoppers of two bookstores in Taiwan. A structural model tested the direct effects of the multi-channel store image on purchase intention, and that the moderating effects of consumer characteristics. The results suggest that four of the six dimensions – financial concern, psychosocial concern, time and convenience, and usefulness influence purchase intention. Consumer characteristics (age, gender, education, occupation) did not moderate the relationship.     

International Business Research: Coauthorship Patterns and Quality

The authors investigate published international business research in four international business journals over a 10‐year period, 1995–2004: (a) patterns of coauthorship across regions, and (b) the relation between coauthorship patterns and the quality of international business (IB) articles. A cross‐region coauthorship enhances the quality of an article, suggesting that international collaboration creates synergy in IB research. The authors do not see any positive correlation between alphabetical ordering of coauthor names in multiauthored articles and article quality—a result that is contrary to some evidence in other disciplines. Finally, international management articles appear to be more frequently cited than articles in other IB research areas.     

A lattice model for option pricing under GARCH-jump processes

This study extends the GARCH pricing tree in Ritchken and Trevor (J Financ 54:366–402, 1999) by incorporating an additional jump process to develop a lattice model to value options. The GARCH-jump model can capture the behavior of asset prices more appropriately given its consistency with abundant empirical findings that discontinuities in the sample path of financial asset prices still being found even allowing for autoregressive conditional heteroskedasticity. With our lattice model, it shows that both the GARCH and jump effects in the GARCH-jump model are negative for near-the-money options, while positive for in-the-money and out-of-the-money options. In addition, even when the GARCH model is considered, the jump process impedes the early exercise and thus reduces the percentage of the early exercise premium of American options, particularly for shorter-term horizons. Moreover, the interaction between the GARCH and jump processes can raise the percentage proportions of the early exercise premiums for shorter-term horizons, whereas this effect weakens when the time to maturity increases.     

An empirical study of commercialization performance on nanoproducts

Along with the trend toward the convergence between nanotechnology and other disciplines, the commercial application and the diffusion of Nan products have drawn much attention. The successful commercialization of nanoproducts is based not only on R&D breakthroughs but also on the products' attributes and the consumers' needs. However, no research has yet been carried out to investigate the effect of performance and importance on nanoproducts. The aim of this study is to discuss and evaluate the commercialization performance of nanoproducts from consumer perspectives. The importance?performance analysis (IPA) approach was used to construct a series of nanoproducts' importance attribute and performance evaluation maps to identify areas for improvement. The empirical data were compiled in a structural consumer questionnaire-based survey from consumer perspectives across different nanoproducts. Respondents were required to identify nanoproducts' innovative characteristics and the performance differences of their attributes. Both innovation characteristics and product attribute dimensions as representing nanoproduct innovations were further weighted in terms of their perceived importance and their performance. As a consequence, the proposed approach in this study is to understand how to integrate consumers' perceived importance into performance, with particular concern on the identification of market opportunities into the commercialization of nanoproducts. In addition, this study enables nanotechnology firms to develop nanoproduct technologies and to strategically market them based on their attributes and performance, thus leading to the achievement of their commercialization and the creation of a successful long-term, performance-based competitive strategy.     

The effects of corporate governance on airline performance: Production and marketing efficiency perspectives

This study explores the relationship between operating performance and corporate governance in 30 airline companies operating in the US. First, this study applies a two-stage Data Envelopment Analysis (DEA) to evaluate the production efficiency and marketing efficiency of the airlines. Our findings indicate that, in general, there is not as much dispersion in the relative productive efficiencies of the airlines as there is in their marketing efficiencies. The low-cost airlines, on average, are more efficient carriers than the full-service ones, but less efficient marketers. Secondly, truncated regression is used to explore whether the characteristics of corporate governance affect airline performance. The results demonstrate that corporate governance influences firm performance significantly. Finally, we address the managerial decision-making matrix and make suggestions to help airline managers improve performance.