Reexamining the Exchange Rate Exposure Puzzle by Classifying Exchange Rate Risks into Two Types

The “exchange rate exposure puzzle” refers to the phenomenon in which the proportion of firms with significant exchange rate exposure tends to be lower than expected figures. Some studies use changes in exchange rate to indicate exchange rate risks relevant to firm value. However, a different measure of exchange rate risks, which is the volatility in exchange rate changes, can also affect the value of firms because exchange rate uncertainty can affect international trade and investments of firms. This study classifies exchange rate risks into two types, namely, changes in exchange rate and the standard deviation of exchange rate changes, and empirically examines exchange rate exposure of firms in 12 countries. The results suggest that the proportion of firms with significant exchange rate exposure increases substantially, and thus, weakens the exchange rate exposure puzzle when we also count the cases in which the standard deviation of exchange rate changes affects stock return significantly.     

The influence of trade union Disability Champions on employer disability policy and practice

Disability Champions are a new type of lay workplace trade union activist, whose role is to encourage employers to audit and improve disability policies and offer independent advice and guidance on disability issues to employees. Drawing on a survey of the population of Disability Champions, this article assesses Disability Champion influence on employer disability policy and practice. While the majority of Disability Champions report having had a positive impact, they report greater influence on employer willingness to conduct disability audits and to amend and improve employer equal opportunities practices with regard to disability than employer willingness to make reasonable adjustments. The analysis also identifies several factors that are likely to be important in improving Disability Champion effectiveness. Overall, the results suggest Disability Champions have the potential to enhance the ability of unions to represent disabled people and help manage disability issues within the workplace. The article makes a theoretical contribution to Disability Champion roles by further developing the ‘Activity‐Support‐Characteristic’ framework for the antecedents of new union representatives' effectiveness.     

‘Generation Rent’ and The Fallacy of Choice

The now widely used term ‘Generation Rent’ reflects the growing phenomenon in the UK of young people living in the private rental sector for longer periods of their lives. Given the importance of leaving home in youth transitions to adulthood, this is a significant change. It is further critical given the rapid expansion of the private rented sector in the UK over recent decades and the more limited rights that private tenants have. This article draws on qualitative evidence to highlight the impact this has on young people's lives, and broader patterns of social‐spatial inequality. Our research highlights that, whilst young people retain long‐term preferences for homeownership, they nonetheless deconstruct this normalized ideal as a ‘fallacy of choice', given its unachievability in reality. Influenced by the work of Foucault, Bourdieu and Bauman, we emphasize how these dominant norms of housing consumption are in tension with objective reality, since young people's ability to become ‘responsible homeowners' is tempered by their material resources and the local housing opportunities available to them. Nonetheless, this does not exempt them from the ‘moral distinctions' being made, wherein renting is problematized and constructed as ‘flawed consumption'. These conceptual arguments advance international scholarly debates about the governance of consumption, offering a novel theoretical lens through which to examine the difficulties facing ‘Generation Rent’.     

Assertive Environmental Advertising and Reactance: Differences Between South Koreans and Americans

In three studies, the authors show that Americans and South Koreans react differently to environmental advertising campaigns featuring assertive messages that threaten autonomous freedoms. The findings uphold their hypothesis that cultural differences determine whether consumers will show reactance to assertive advertising campaigns. Study 1 demonstrates that Americans are less receptive to an assertive recycling message using imperatives such as should, must, and ought and more receptive to a nonassertive message using could, might, and worth. South Koreans do not show the reactance response. Study 2, an energy-saving campaign, conceptually replicates the findings and further shows that perceived threat to freedom mediates the effects. Study 3 uses a realistic setting (i.e., online magazine) to further support the hypothesis that cultural differences affect attitudes toward assertive messages, but adds perceived politeness as an underlying second mediator.     

The Role of Airline Travelers’ Pre-Recovery Emotions during the Service Recovery Process

This study examines (1) the relationships between airline travelers’ casual attribution (stability and controllability), pre-recovery emotions, post-recovery emotions, and overall satisfaction; and (2) analyzes the mediating effect of pre-recovery emotions on the relationship between causal attribution and post-recovery emotions. Theoretical hypotheses were derived based on a literature review, and to empirically test the hypotheses, data were collected from 210 airline travelers in Malaysia. These respondents were airline travelers who experienced some service failure and relevant service recovery within the past year. According to the results, the two dimensions of casual attribution both influenced pre-recovery emotions. Pre-recovery emotions were significantly related to positive and negative post-recovery emotions, and post-recovery emotions were significantly related to overall satisfaction. In addition, pre-recovery emotions moderated the relationship between casual attribution and post-recovery emotions. These results have important practical implications.     

External Brand Placement: The Effects on Game Players’ Processing of an In-Game Brand

Video games are now a venue for branded messages. Hence, game players may be exposed to brands in and outside game environments. This study focuses on the latter, that is, external brand placement. Drawing upon the literature on involvement and on the limited capacity model (LCM) of information processing, this study explores the mechanism by which external brand placement influences game players’ processing of a brand placed within a game, known as an in-game brand. The results show that players exposed to an external brand identical to an in-game brand showed greater in-game brand recall than those not so exposed. Players exposed to a competing external brand—whether congruent or not—showed lower in-game brand recall. When the brand was incongruent, however, they showed a preference for the in-game brand.