Can the interests of shareholders explain industry attitudes toward banking-insurance mergers?

The banking industry generally supports and the insurance industry generally opposes the removal of regulatory boundaries between the two industries. In an effort to explain these industry attitudes, this article examines the effect, in the absence of synergies, of hypothetical mergers of banks and insurance companies on shareholders' risk and return. The results suggest that, if cash flows are not impacted by the mergers, the attitudes of industry management toward inter-industry mergers cannot be motivated by concerns for shareholder risk and return since, during the data period considered, insurer shareholders would have gained more by acquiring banks than bank shareholders would have gained from acquiring insurers.     

The relationship of psychological and situational variables to usage of a second-order marketing system

The study of one type of second-order market, personal sales, indicated that various consumer attitudes and merchandising strategies were related to utilization of this market. Similarities and differences between this market and other second-order markets were also noted.     

The Motivation for Takeovers in the UK

Abstract:  The motives for takeovers in the UK are investigated by examining the correlations between wealth gains for the target and both acquirer wealth gains and total wealth gains. The results are sensitive to whether the gains are measured over a long or short window, the method of measuring abnormal returns, and whether controls are included for the form of the bid consideration and the sign of total bid gains. There is evidence of bids motivated by synergy, but there is also evidence of the presence of hubris and weak evidence of bids with an agency motivation. Once controls for bid consideration and the sign of total gains are introduced the explanatory power of the models increases substantially and diversity of results about bid motivation also increases.     

House Prices and Bubbles in New Zealand

This paper studies actual (real) house prices relative to fundamental (real) house values in New Zealand for the period 1970–2005. Utilizing a dynamic present value model, we find disparities between actual and fundamental house prices in the early 1970s and 1980s and from 2000 to date. We model the bubble component that is related to fundamentals (the intrinsic component), making it possible to highlight whether a bubble still exists after that component is accounted for. We then analyze any remaining bubble to detect any momentum behavior. Much of the overvaluation of the housing market is found to be due to price dynamics rather than an overreaction to fundamentals.

Cake or fruit? Influencing healthy food choice through the interaction of automatic and instructed mental simulation

Promoting healthy food choice is a central issue for public welfare and a continuous challenge for marketers and policy makers. This research examines how marketing communication elements, such as visuals and text, can be used to encourage healthy food choices. Extending previous research in automatic process mental simulation, this research examines whether visual presentations of food items can trigger a different type of automatic mental simulation that is outcome oriented. Results from four studies show that visual presentations of food items in an advertisement can trigger process and outcome automatic mental simulation (AMS) of food consumption, and AMS interacts with an advertisement’s instructed mental simulation (IMS) to influence consumer healthy food choice. Contributing to marketing research in using IMS in advertising to promote product offerings, this research demonstrates that the success of IMS cues varies depending not only on the amount, but more importantly, the type of AMS triggered from visual cues.