Customer service strategy options: A multiple case study in a B2B setting

This study addresses the question whether customer service actually has order winning potential in B2B situations, which customer service strategies are deployed, and what determines customer service relevance. A literature review was followed by a multiple case study, using 12 organizations from different industries and from different positions in supply chains. Based on having both problem solving and transfer characteristics, four customer service strategy options are identified: customer integration, customer adaptation, logistical precision, and standard customer service. Many organizations are positioned in the least attractive customer service strategy option: customer adaptation. Partially, this is caused by difficulties in assessing the customer service capability and the customer's sensitivity for customer service. The article concludes with the theoretical and managerial implications.     

Self-censorship on Internal Social Media: A Case Study of Coworker Communication Behavior in a Danish Bank

Internal social media (ISM) or social intranets provide organizations with a communication arena in which coworkers can actively contribute to organizational communication. Coworkers are, however, far from impulsive and spontaneous when they communicate on ISM. A case study in a Danish bank found that coworkers considered carefully the consequences of their posts or comments before publishing them. These coworkers perceived four different risks associated with ISM communication, and they used seven self-censorship strategies to ensure that both the content and the formulation of their communication were relevant and appropriate. Coworkers not only censor themselves by withdrawing, as previous studies have suggested, but they also postpone publishing content, phrase or frame content differently, imagine responses from organizational members, ask others for a second opinion, choose another channel, or write only positive comments. Through these seven self-censorship strategies, coworkers retain the quality of communication on ISM and prevent conflict or relational damage. Future research should explore the self-regulation strategies underlying self-censorship in order to improve understanding of the circumstances that increase the likelihood of responsible use of ISM. The potential dark side of self-censorship also requires exploration: when can self-censorship threaten coworkers’ freedom of expression, and develop into organizational silence?     

Pricing of commercial real estate securities during the 2007–2009 financial crisis

We study the relative and absolute pricing of CMBX contracts (commercial real estate derivatives) during the recent financial crisis. Using a structural CMBX pricing model, we find little systematic mispricing relative to REIT equity and options. We do find short-term deviations from this relative pricing relationship that are statistically and economically significant. In particular, the CMBX market temporarily overreacts to news announcements. We provide evidence that this temporary mispricing is caused by price pressure due to hedging activities. Finally, an absolute pricing analysis provides no substantial evidence that CMBX contracts traded at fire sale levels during the crisis.     

Earnings Announcement Lags and Market Responses—Does the Tone of the News and the Market Sentiment Matter?

We investigate earnings announcement lags (period from the end of the reporting period until the announcement date) for the good and the bad quarterly earnings news across different market sentiment periods as well as market reactions thereto. Companies listed on Baltic stock exchanges exhibit clear signs of strategic timing of earnings announcements. Earnings announcement lags for the bad news tend to be longer than those for the good news. This difference is more pronounced during low market sentiment periods. If the release of the bad news is postponed, abnormal return responses remain lower, as expected.     

Universal service and disabled people

The EU regulatory framework enacted 25 May 2011 has the objective to provide functionally equal access to telecommunication services for disabled persons. What are the rules, who are the target groups, and what obstacles do they face when using various telecommunication services? And what arrangements do exist in a selected group of six EU Member States to remove these obstacles? Recommendations include the introduction of a more market-oriented approach, independent of specific networks.     

RISK AND HEDGING BEHAVIOR: THE ROLE AND DETERMINANTS OF LATENT HETEROGENEITY

The notion of heterogeneous behavior is well grounded in economic theory. Recently it has been shown in a hedging context that the influence of risk attitudes and risk perceptions varies for different segments using a generalized mixture regression model. Here, using recently developed individual risk attitude measurement techniques and experimental and accounting data from investors with differing decision environments, we examine the determinants of heterogeneity in hedging behavior in a concomitant mixture regression framework. Allowing for latent heterogeneity, we find that risk attitudes and risk perceptions do not influence behavior uniformly and that the heterogeneity is influenced by manager's focus on shareholder value and the firm's capital structure.     

Libor Market Models versus Swap Market Models for Pricing Interest Rate Derivatives: An Empirical Analysis

We empirically compare Libor and Swap Market Models for the pricing of interest rate derivatives, using panel data on prices of US caplets and swaptions. A Libor Market Model can directly be calibrated to observed prices of caplets, whereas a Swap Market Model is calibrated to a certain set of swaption prices. For both models we analyze how well they price caplets and swaptions that were not used for calibration. We show that the Libor Market Model in general leads to better prediction of derivative prices that were not used for calibration than the Swap Market Model. Also, we find that Market Models with a declining volatility function give much better pricing results than a specification with a constant volatility function. Finally, we find that models that are chosen to exactly match certain derivative prices are overfitted; more parsimonious models lead to better predictions for derivative prices that were not used for calibration.     

The world price of jump and volatility risk

We study international integration of markets for jump and volatility risk, using index option data for the main global markets. To explain the cross-section of expected option returns we focus on return-based multi-factor models. For each market separately, we provide evidence that volatility and jump risk are priced risk factors. There is little evidence, however, of global unconditional pricing of these risks. We show that UK and US option markets have become increasingly interrelated, and using conditional pricing models generates some evidence of international pricing. Finally, the benefits of diversifying jump and volatility risk internationally are substantial, but declining.     

Relationship marketing's role in managing the firm-investor dyad

This paper develops an interdisciplinary conceptual framework demonstrating the role of marketing in managing investor relationships. The framework illustrates how companies can turn investor relationships into market-based assets by analyzing and managing them from a relationship marketing and stakeholder perspective. Marketing can contribute to investor relationship management and increase shareholder value by lowering the cost of equity capital, increasing analyst coverage and stock liquidity, and reducing shareholder activism. An investigation among investor relations professionals working at publicly traded companies in the Euronext 100 stock index demonstrates the framework's empirical validity and provides managerial implications.