The day-of-the-week effect and conditional volatility: Sensitivity of error distributional assumptions

We test for reliable evidence of the day-of-the-week effect on both the mean and volatility for the S&P/TSX Canadian return index. Unlike previous studies, we permit several specifications for the error distribution — GARCH normal, Student's t, generalized error distribution, and double exponential distribution. Unlike other studies, we find that the day-of-the-week effect in both mean and conditional volatility is sensitive to the particular specification of the underlying distributions. We also find that using a regression analysis assuming a Student's t distribution is a better way to investigate this effect. Our evidence demonstrates the apparent fragility of previous empirical studies on calendar anomalies. Thus, our results serve as a warning that with financial data, the error distributional assumptions are critical to correctly identifying empirical regularities in the data.     

Impacts of free concessionary travel: Case study of an English rural region

Concessionary fares are offered to those aged 60 and over for bus travel in Britain. This study examines the effects of replacing a half-fare concession in England by free travel in April 2006. Aggregate data are used to examine trends; in addition, a large sample was obtained of pass holders in the Salisbury area, which enables a clear distinction to be drawn between increased travel by those who already held a half-fare pass, and travel by those taking up the pass for the first time. These data are then used to derive fare elasticities, and compare the characteristics of new passholders and those previously holding a half-fare pass. Comparisons are made with studies elsewhere. Overall policy implications are reviewed.     

Comprehensive bioeconomic modelling of multiple harmful non-indigenous species

Harmful non-indigenous species (NIS) introductions lead to loss of biodiversity and serious economic impacts. Government agencies have to decide on the allocation of limited resources to manage the risk posed by multiple NIS. Bioeconomic modelling has focused on single species and little is known about the optimal management of multiple NIS using a common budget. A comprehensive bioeconomic model that considers the exclusion, detection and control of multiple NIS spreading by stratified dispersal and presenting Allee effects was developed and applied to manage the simultaneous risk posed by Colorado beetle, the bacterium causing potato ring rot and western corn rootworm in the UK. A genetic algorithm was used to study the optimal management under uncertainty. Optimal control methods were used to interpret and verify the genetic algorithm solutions. The results show that government agencies should allocate less exclusion and more control resources to NIS characterised by Allee effects, low rate of satellite colonies generation and that present low propagule pressure. The prioritisation of NIS representative of potential NIS assemblages increases management efficiency. The adoption of management measures based on the risk analysis of a single NIS might not correspond to the optimal allocation of resources when other NIS share a common limited budget. Comprehensive bioeconomic modelling of multiple NIS where Allee effects and stratified dispersal are considered leads to a more cost-effective allocation of limited resources for the management of NIS invasions.     

Understanding the Influence of Cues from Other Customers in the Service Experience: A Scale Development and Validation

During most consumer exchanges, particularly in service and retailing settings, customers are “in the factory” and, as a result, the presence of other customers can have a profound impact on customer experiences. Despite studies demonstrating the importance of managing the customer experience and customer portfolios, the marketing literature lacks a comprehensive scale that can be used to assess individuals’ perceptions of other customers during commercial transactions. This study conceptualizes a three-dimension, Other Customer Perception (OCP) scale to address this gap. Using a seven-step scale development process, the multi-dimensional conceptualization is supported and validated and the research demonstrates the impact of the OCP dimensions on consumers’ approach and avoidance intentions. The findings provide a clearer understanding of how other customers can indirectly influence assessments of a customer exchange and can assist in the measurement of other customer perceptions in future research efforts.     

Perspectives on Leisure of LDS Women Who Are Stay-at-Home Mothers

The purpose of this study was to explore the meanings of leisure for women who belonged to the Church of Jesus Christ of Latter-day Saints, lived in Utah, and were stay-at-home mothers. Particular attention was given to the religious, cultural, and role-determined forces that shaped their lives and leisure. A phenomenological approach was used. Thirteen women were identified through a criteria-based snowball sampling technique. Emerging theory indicated that cultural beliefs and values can contribute to feelings of entitlement to leisure because of the support for leisure and life roles given by one's faith, family, and community.     

Editorial

This paper is a report on a longitudinal case study of internal marketing as a relationship development process. The activity is observed and interpreted as a relationship development process in a large retail bank. Dominant modes emerge which are described as energising, code breaking and border crossing. These activities are seen to be facilitated by the sharing of knowledge through a network of voluntary internal staff relationships. The characteristics of internal networks for internal marketing are then examined. This shows both the strength and the vulnerability of internal network organisation to other legitimate agendas within the host organisation.     

Corporate financing decisions when investors take the path of least resistance

We argue that inertial behavior on the part of investors can have significant consequences for corporate financial policy. One implication of investor inertia is that it improves the terms for the acquiring firm in a stock-for-stock merger, because acquirer shares are placed in the hands of investors, who, independent of their beliefs, do not resell these shares on the open market. In the presence of a downward-sloping demand curve, this leads to a reduction in price pressure and, hence, to cheaper equity financing. We develop a simple model to illustrate this idea and present supporting empirical evidence.     

A Comparison of Ethics of Investment Professionals: North America Versus Pacific Rim Nations

This study examines the ethical attitudes and practices of securities analysts and portfolio managers from four Pacific Rim countries – Hong Kong, Japan, Singapore and Thailand – and compares the findings to a similar study of North American investment professionals to identify significant differences. The findings show that many differences exist due to cultural differences and differences in the regulatory environment between the Pacific Rim countries studied and North America.