Does Post‐ante Investment Experience Matter? Lessons from FDI in China

Ample efforts of FDI literature have researched on the motives and determinants of FDI flows based on ex‐ante conditions. Little has been studied with regard to the effects of post‐ante behaviour in determining future investment decisions. Post‐ante experience of FDI decisions with regard to foreign investors’ satisfaction or dissatisfaction and future profit expectations on recurrent decisions are critical. This paper, thus, attempts to investigate FDI in the context of an emerging market environment with emphasis on how environmental and institutional factors and the micro‐firm effects of how investors’ post‐ante views on profits expectations and investment experience would affect MNCs’ decisions on recurrent investment and firm relocation. Empirical results show that decisions in the short and long run were affected differently by the factors under study. Specifically, the short‐run decisions were more affected by profit expectations while the long run by post‐ante experience on investment satisfaction/dissatisfaction and environmental and institutional determinants.     

The impact of bank merger growth on CEO compensation

We examine the impact of bank mergers on chief executive officer (CEO) compensation during the period 1992–2014, a period characterised by significant banking consolidation. We show that CEO compensation is positively related to both merger growth and non‐merger internal growth, with the former relationship being higher in magnitude. While CEO pay–risk sensitivity is not significantly related to merger growth, CEO pay–performance sensitivity is negatively and significantly related to merger growth. Collectively, our results suggest that, through bank mergers, CEOs can earn higher compensation and decouple personal wealth from bank performance. Furthermore, we document a more severe agency problem in CEO compensation as a consequence of bank mergers relative to mergers in industrial firms. Finally, we find that the post‐financial crisis regulatory reform of executive compensation in banks has limited effectiveness in curbing the merger–pay links.     

The Relationships between National Identity,Hospitality, and Satisfaction among Foreign Hotel Guests

The main objectives of this paper are to examine the effect of hotel hospitality on the satisfaction level of foreign guests in the context of the hotel industry, as well as to explore the moderating effect of national identity (country-specific hospitality) on the relationship between hospitality and guests’ level of satisfaction. In this study, “national identity” refers to the distinctive cultural elements of a specific country that are incorporated into the hotel’s service design. This study, involving 315 foreign guests at Malaysian hotels, used survey administration as the main data collection method. Hierarchical moderated regression analysis was performed and statistical support for the effect of hospitality on the patrons’ satisfaction with their hotel stays, as well as the moderating effect of national identity on satisfaction levels, were found. This study also proposes a new scale to measure “country-specific hospitality”.     

Prospectus Earnings Forecasts: Evidence And Explanations

Recent changes to prospectus regulations have generated considerable controversy. While the legally enforceable definition of “required information” may be uncertain, it seems clear that earnings forecasts are expected to play an important role. However, we find that the accuracy of these forecasts is questionable, as are many of the explanations offered for differences with the actual results. This calls into question the methods used for estimating future earnings and, ultimately, the usefulness of such forecasts. Laws relating to liability for prospectus information make this an issue of some concern for investors, as well as accountants and other professional advisers.     

Product placement practices in prime-time television programmes in Hong Kong

ABSTRACT

Product placement research tends to show how product placements impact consumer behaviour but less research examines the nature of product placement execution. This is the first study to examine product placement execution in Asia focusing on Hong Kong prime-time television programmes. Specifically it explores the prevalence of brand appearances, characteristics of programmes linked to brand appearances, features of placed brands and products, modality of brand appearances, character interaction with placed products and the placement context. It was found that integrating brands in television programmes in Hong Kong seems to be well supported by advertisers, with one brand appearing in every 11 minutes of programming. Less than half of brand appearances were disclosed at the end of the programmes, while none were disclosed prior to the programme which raises questions about regulation of the practice. Results of the analysis provide useful insights into the practice of product placement in this fast growth context and its (dis)connection with existing product placement literature.     

Purchasing Power Parity: A Time Series Analysis of the U.S. and Mexico, 1995–2007

This paper presents indirect evidence that absolute purchasing power parity (PPP) may hold in the long-run between Mexico and the U.S., but due to data limitations, the relationship could not be tested directly. Thus it is not clear if absolute PPP holds in the long run between the U.S. and Mexico. Given that relative PPP is a necessary, but not sufficient, condition for absolute PPP to hold, this study tests the relationship between the change in the log of the exchange rate, and the changes in the log of the U.S. producer price index (PPI) and the Mexican PPI. Here, the absence of relative PPP would indicate that absolute PPP could not hold. Given that all the relevant variables in first difference log are stationary, PPP in its relative form holds and OLS can be applied directly in a VAR model setting, viz., treating all variables initially as potentially endogenous. The estimates indicate one-way Granger causality from the percentage change in the exchange rate to the percentage change in the Mexican price level, which is not an implausible result for an emerging nation such as Mexico which imports a significant fraction of (dollar denominated) intermediate products and capital inputs.     

Chinese New Year Festival: Exploring consumer purchase intention at the flower market in Macau

The flower market is a traditional event during the Chinese New Year Festival in Macau. Previous research shows that many unplanned purchases are made in such an environment. This study attempts to investigate what factors influence impulse purchase intention at the flower market. A consumer survey was conducted and 250 respondents were interviewed at various popular flower market venues. The results indicate that distinct packaging has the highest influence on impulse purchase intention, followed by healthy product, special price offer, and free sample tasting, while prime location has the least and adverse effect. The findings provide insight for booth retailers in budget allocation for a festival event held once a year and estimation of impulse purchase in accordance with the effect of each marketing mix strategy.     

Increasing returns,individuality and use of the common pool

A model of monopolistic competition is suggested to study common‐pool resource use. Individuals extract an input from the pool to produce a consumption good under decreasing average costs. The equilibrium output and population sizes are obtained under two types of usage conjectures. Somewhat counter‐intuitively, a cooperative equilibrium results in a larger population of harvesters but lower welfare than the noncooperative one. Some degree of population heterogeneity helps minimise the welfare gap between the two equilibria, but the size of heterogeneity may be a determinant if the resource pool becomes subsequently depleted. The model's potential for policy analysis is illustrated by considering how governance via institutional arrangements and transaction costs may be incorporated and inferred.