Implicit incentives and reputational herding by hedge fund managers

Several theories of reputation suggest that managers' incentives affect their propensity to engage in herding behavior. This paper investigates these theories by tracking hedge fund managers' herding behavior over their careers. I first examine managerial incentives for herding, and show that more senior managers that deviate from the herd have a significantly higher probability of failure and do not experience higher fund inflows than their less-senior counterparts. These implicit incentives should encourage managers to herd more as their careers progress. I find strong support for this hypothesis: using a number of proxies for herding, I show that more experienced managers herd more than less-experienced managers. Finally, I examine performance differences between more and less-experienced managers, and find that while more experienced managers underperform less-experienced managers, this underperformance does not appear to be caused by differences in herding. Overall, these results are in direct contrast with studies of mutual fund managers, reflecting important difference in implicit incentives between the two industries.     

Two are Better Than One: The Link Between Management Systems and Business Performance

Little is known about the complementary performance benefits associated with facilities’ combined use of both quality management systems (QMSs) and environmental management systems (EMSs), and how these performance benefits might differ from those associated with facilities’ use of only one of these management systems (or neither). We suggest that complementarities arise because each management system fosters the development of internal capabilities that facilitates the adoption and routine operationalization of the other, while maintaining differentiated goals that enhance strategic value. We examine these relationships using a sample of 2619 manufacturing facilities operating within six OECD countries, while controlling for self‐selection issues. Our findings support the idea of complementarity, in that facilities that adopt both QMS and EMS are more associated with positive business performance than facilities that adopt either a QMS or an EMS on its own, or no management system. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment     

The interplay of governance mechanisms in complex procurement projects

Although many studies have investigated governance in inter-firm relationships, little is known about the simultaneous use of several governance mechanisms in complex procurement projects and their impact on project outcomes. In a case study about a complex procurement project in the Norwegian oil and gas industry, we investigate the interplay of contractual incentives, authority and relational governance. The project faced many problems with cost overruns and schedule delays. The study clearly illustrates the interrelationships between governance mechanisms and their effect on project outcomes. The findings suggest that relational governance (trust) is only beneficial for project outcomes when it is accompanied by contractual incentives and control systems (authority). Relational governance in itself does not guarantee an effective and beneficial interplay of all three mechanisms in a way that positive project outcomes are generated.     

Customer Satisfaction and Elapsed Time since Purchase as Drivers of Price Knowledge

This study investigates the influence of customer satisfaction and elapsed time since purchase on customers’ explicit and implicit knowledge of price. The results of two large, independent surveys of customers who purchased a consumer durable good indicate that customer satisfaction and elapsed time have different effects on explicit versus implicit price knowledge. Customer satisfaction has a negative impact on explicit price knowledge, but no substantial effect on implicit price knowledge. The length of time between purchase and retrieval of the price information has a negative impact on explicit price knowledge but no substantial effect on implicit price knowledge. Finally, customer satisfaction has a moderating role, in that the higher the customer satisfaction level, the stronger the negative impact of elapsed time on explicit price knowledge.     

Teenagers’ use of alternative shopping channels: A consumer socialization perspective

The consumer socialization (CS) perspective is applied to explore factors that influence a developing consumers’ use of different shopping channels—mall and Internet. The effects of channel involvement, access to funds, access to the channel, and socialization agent communication on adolescent shopping and intentions are examined using a high school student sample. Results indicate that involvement with a channel has a major influence on agent communication, time and money spent, and future intentions to shop in that channel. Agent communication was also found to influence shopping behaviors and intentions. Differences between channels are noted. Additional findings, implications, limitations, and future research directions are also presented.     

When a few minutes sound like a lifetime: Does atmospheric music expand or contract perceived time?

In the first of two experiments, the estimated duration of a given interval was shorter when familiar as opposed to unfamiliar music was played, but only for respondents waiting idly; music had little or no effect on respondents engaged in a memory task during the interval. In the second experiment, respondents waiting idly again reported shorter estimates of duration when they heard familiar as opposed to unfamiliar music, but only when they heard a sufficient number of songs during the interval. On the other hand, respondents engaged in a memory task reported longer estimates of duration when they heard familiar as opposed to unfamiliar music, but again only when they heard a sufficient number of songs. These results are consistent with attentional (i.e., waiting condition) versus discrete events (i.e., memory task condition) models of duration judgments, respectively.     

Interference of Picture and Brand Name in a Multiple Linkage Ad Context

This study investigates the superiority effects of picture incongruency and brand name suggestiveness on recall of target benefit claims. Depending on the juxtaposition of the picture and brand name with these claims, a relevant picture can interfere with and inhibit recall of a brand name claim under selected conditions. Specifically, recall of brand name claim was higher under an irrelevant rather than a relevant picture condition. Similarly, a suggestive brand name interfered and diminished recall of a picture claim compared to a nonsuggestive brand name. Additionally, the recall patterns of the picture (source) versus the picture claim (target) under various incongruency conditions showed that the effectiveness of picture incongruency on traditional picture recall measure cannot be extended to picture-related claim recall performance. Explanations based on theoretical extensions to the associated network model and interference theory are furnished together with the managerial implications regarding the effective use of picture incongruency and brand name suggestiveness.