Voluntary simplicity and the ethics of consumption

The increased levels of consumption that have accompanied our consumer‐oriented culture have also given rise to some consumers questioning their individual consumption choices, with many opting for greater consumption simplicity. This link between consideration of actual consumption levels and consumer choices is evident among a group of consumers known as ethical consumers. Ethical consumers consider a range of ethical issues in their consumer behavioral choices. Particularly prevalent is voluntary simplification due to concerns for the extent and nature of consumption. Through the presentation of findings from two qualitative studies exploring known ethical consumers, the relationship of consumer attitudes to consumption levels, and how these attitudes impact approaches to consumer behavior, are discussed. © 2002 John Wiley & Sons, Inc.     

The Inefficiency of the Mean Analyst Forecast as a Summary Forecast of Earnings

We show analytically that mean analyst forecasts inefficiently aggregate information by assigning too much weight to analysts' common information relative to their private information when used as a summary forecast measure of forthcoming earnings. A more precise summary forecast of earnings than the current mean forecast is the current mean forecast plus a positive multiple of the change in the mean forecast.     

Testing the Validity of Contingent Behavior Trip Responses

While a number of validity tests exist for contingent valuation data, to date there are very few literature examples for contingent behavior (CB) data. The objective of this study is to test the validity of CB trip data for different levels of rock climbing access using data from surveys implemented before and after a policy restricting recreational access was imposed. Results from generalized Negative Binomial and seemingly unrelated Poisson regression models show significant sensitivity to scope, and suggest that CB data may be a valuable supplement to revealed preference data when policy proposals are outside the range of historical conditions.     

Taiwan Chinese managers' personality: is Confucian influence on the wane?

This paper conjectures that Chinese managers' personality in the Taiwan context, as shaped by Chinese tradition, has been moderated in response to their career experience. The paper begins with an introduction to Chinese culture and its impact on values and personality. It then goes on to argue that if the cultural context can nurture personality, we should therefore expect that as the context changes, personality can be moderated via economic reforms as in the case of Taiwan. It is reasonable to assume that among the Taiwanese, the occupational grouping that has most actively felt the impact of these reforms is managers who have been at the forefront of making them happen. We are not aware of any studies focusing on Taiwanese managers which attempt to assess how far their personality is still shaped by Confucian values which have strongly influenced Chinese traditions, and how far it has experienced changes that have come about through modernization and economic reform. We have addressed this research gap using the Chinese Personality Assessment Inventory (CPAI), an indigenous Chinese personality instrument developed by Cheung et al. (1996) with the support of an interview programme and a biographical data sheet to flesh out details related to the subjects' lives and experience. The findings suggest that the traditional Chinese personality with its grounding in Confucianism has been gradually eroding but that some elements of it are still strongly in evidence. The contribution of this study lies in illustrating how personality may be undergoing convergence through modernization. It also signals that cultural boundaries with reference to emic and etic research may also be converging. To the extent that this is so, future studies on culture and business management in China may need to reappraise their understanding of the nature of Chinese culture, values and personality, and how they have responded to business forces in a globalized world.     

Understanding the barriers and factors associated with consumer adoption of wearable technology devices in managing personal health

This research seeks to identify the barriers and factors associated with adopting wearable technology devices (WTDs) for managing personal health. Based on a partial least square (PLS) analysis of 277 US-based residents, the findings demonstrate that performance expectancy, social influence, facilitating conditions, hedonic motivation, habit, and personalization are significant predictors of consumers' intention to use WTDs. Interestingly, price value, privacy concerns, and health consciousness are not significant. This study will inform future research on WTDs in personal health management. Theoretical and practical implications of the study are also presented.     

ENDOGENOUS DEBT‐EQUITY RATIO AND BALANCE‐SHEET CHANNEL: IMPLICATIONS FOR GROWTH AND WELFARE

This paper endogenizes the debt‐equity ratio and embodies financial leverage in a cash‐in‐advance model of endogenous growth. Our analysis finds that the debt‐equity ratio is positively related to the balanced‐growth rate, since it serves as a ‘financial accelerator’ to stimulate investment projects. Compared to previous studies, this positive relationship gives rise to an additional balance‐sheet effect, which substantially affects the macroeconomic consequences of monetary and taxation policies. Due to the existence of the balance‐sheet effect, we also find that the Friedman rule is not necessarily optimal.     

CEO incentives and the cost of debt

Motivated by concerns that stock-based compensation might lead to excessive risk-taking, this paper’s main purpose is to examine the relations between CEO incentives and the cost of debt. Unlike prior research, this paper uses the sensitivities of CEO stock and option portfolios to stock price (delta) and stock return volatility (vega) to measure CEO incentives to invest in risky projects. Higher delta (vega) is predicted to be related to lower (higher) cost of debt. The results show that yield spreads on new debt issues are lower for firms with higher CEO delta and are unrelated to CEO vega. The results also show that yield spreads are higher for firms whose CEOs hold more shares and stock options. In sum, the results suggest that both percentage-ownership and option sensitivity variables are important in understanding relations between CEO incentives and the cost of debt.