Remembering the Good Old Days: The Moderating Role of Consumer Affective State on the Effectiveness of Nostalgic Advertising

Employing different experimental priming procedures and advertising treatments across two studies, we examine the moderating role of consumer affective state on individuals’ responses to nostalgic and nonnostalgic advertising. Consistent with hypothesized expectations, our findings indicate that when consumers are in a positive affective state they respond more favorably (i.e., report more positive memories and favorable brand-related responses) to nostalgic (versus nonnostalgic) ads. In contrast, one's negative affective state appears to play a limited role in affecting responses between ad types. The theoretical implications of these findings as they relate to nostalgic advertising effects are discussed, and recommendations for advertising practitioners are offered.     

HEDGING AND PORTFOLIO OPTIMIZATION UNDER TRANSACTION COSTS: A MARTINGALE APPROACH12

We derive a formula for the minimal initial wealth needed to hedge an arbitrary contingent claim in a continuous-time model with proportional transaction costs; the expression obtained can be interpreted as the supremum of expected discounted values of the claim, over all (pairs of) probability measures under which the “wealth process” is a supermartingale. Next, we prove the existence of an optimal solution to the portfolio optimization problem of maximizing utility from terminal wealth in the same model, we also characterize this solution via a transformation to a hedging problem: the optimal portfolio is the one that hedges the inverse of marginal utility evaluated at the shadow state-price density solving the corresponding dual problem, if such exists. We can then use the optimal shadow state-price density for pricing contingent claims in this market. the mathematical tools are those of continuous-time martingales, convex analysis, functional analysis, and duality theory.     

Infrastructure Privatization and Regulation: Promises and Perils

Infrastructure is crucial for generating growth, alleviatingpoverty, and increasing international competitiveness. For muchof the twentieth century and in most countries, the networkutilities that delivered infrastructure services—suchas electricity, natural gas, telecommunications, railroads,and water supply—were vertically and horizontally integratedstate monopolies. But this approach often resulted in extremelyweak services, especially in developing and transition economiesand especially for poor people. Common problems included lowproductivity, high costs, bad quality, insufficient revenue,and shortfalls in investment. Over the past two decades manycountries have implemented far-reaching institutional reforms—restructuring,privatizing, and establishing new approaches to regulation.This article identifies the challenges involved in this massivepolicy redirection within the historical, economic, and institutionalcontext of developing and transition economies. It also reviewsthe outcomes of these policy changes, including their distributionalconsequences—especially for poor households and otherdisadvantaged groups. Drawing on a range of international experiencesand empirical studies, it recommends directions for future reformsand research to improve infrastructure performance.      

The Role and Current Status of IFRS in the Completion of National Rules – Evidence from Greece

Abstract

Law 4308/2014 is the main regulation that transposed Accounting Directive 2013/34 of the EU into national law in Greece. This short paper summarises the underlying background and the process followed up to the issuance of this Law. It also outlines the key accounting principles introduced with this Law and how they compare with IFRS. This brief analysis indicates that, to a large extent, Greek accounting standards have now been aligned with IFRS. Given the preceding substantial differences between Greek accounting Laws and IFRS, this Law introduced significant changes to the accounting environment for non-listed companies in Greece, aiming at improving accounting quality and enhancing accounting comparability between listed and non-listed companies.     

Forecasting tourist arrivals using origin country macroeconomics

This study utilizes both disaggregated data and macroeconomic indicators in order to examine the importance of the macroeconomic environment of origin countries for analysing destinations’ tourist arrivals. In particular, it is the first study to present strong empirical evidence that both of these features in tandem provide statistically significant information of tourist arrivals in Greece. The forecasting exercises presented in our analysis show that macroeconomic indicators conducive to better forecasts are mainly origin country-specific, thus highlighting the importance of considering the apparent sharp national contrasts among origin countries when investigating domestic tourist arrivals. Given the extent of the dependency of the Greek economy on tourism income and also the perishable nature of the tourist product itself, results have important implications for policymakers in Greece.     

Decision support systems for human resource training and development

Human resource training and development methods and techniques have different qualitative characteristics that require a multicriteria and multiscenario framework for their assessment. This study incorporates the AHP to assess the nine most important human resource training and development methods and techniques, under five criteria and six scenarios. The methods considered are ‘on-the-job training’, ‘mentorship’, ‘apprenticeship’, ‘vestibule training/simulators’, ‘web-based learning’, ‘instructor-led classroom training’, ‘programmed self-instruction’, ‘case studies/role playing’ and ‘systematic job rotations and transfers’. ‘Vestibule training/simulators’ and ‘mentorship’ have the average best scores, and they should be among the first priorities especially when efficiency, the motivation of employees and minimization of the duration of training time are the most important factors. ‘Web-based learning’ is ideal for minimizing training costs or when ease of application is the first priority. ‘On-the-job training’ is a very good alternative when the cost of training should be reduced while the motivation of employees should be increased.     

The role of political tactics on the organizational context–career success relationship

Drawing from the norm of reciprocity, signal theory, and psychological contracts, we argue that the use of different types of political tactics, based on their social desirability, can be reciprocal behavioral reactions to contextual cues (i.e. perceptions of organizational support and politics) that can predict career success. Using a sample of 117 middle managers, our findings suggest that the use of sanctioned political tactics partially mediates the relationship between perceptions of organizational support and career success, while non-sanctioned political tactics suppress the relationship between perceptions of organizational politics and career success.     

Predicting European Union Recessions in the Euro Era: The Yield Curve as a Forecasting Tool of Economic Activity

Several studies have established the predictive power of the yield curve for the U.S. and various European countries. In this paper we use data from the European Union (EU15), from 1994:Q1 to 2008:Q3. We use the European Central Bank’s euro area yield spreads to predict European real GDP deviations from the long-run trend. We also augment the models tested with non monetary policy variables: the unemployment and a composite European stock price index. The methodology employed is a probit model of the inverse cumulative distribution function of the standard distribution using several formal forecasting and goodness of fit evaluation tests. The results show that the yield curve augmented with the composite stock index has significant forecasting power in terms of the EU15 real output.