On the determinant of bank loan contracts: The roles of borrowers’ ownership and board structures

Given the worldwide economic importance of bank loan financing, we empirically investigate the roles of borrowers’ ownership and board structure in bank loan terms through a comprehensive dataset, which includes the complete history of individual bank loan contracts for firms publicly listed in the Taiwan Stock Exchange (TWSE). We find that firms with smaller deviation in shareholder voting and cash flow rights, larger non-retail shareholding, fewer shares pledged by the board of directors, independent directors, and firms without dual boards are more likely to borrow from banks at lower spread. In addition, good governance practices are also associated with larger loan size or longer loan period, suggesting that banks take into account borrowers’ governance practices when designing loan contracts. This fact is consistent with the agency cost and information risk explanations of Bhojraj and Sengupta (2003). Furthermore, this study uncovers that the beneficial effect of good governance practices on bank loan contracting is more pronounced in borrowers with high leverage and poor rating, which implies that the monitoring role of governance is more crucial in risky firms. Our findings are robust to the various characteristics of firms and loans.     

Credit Card Averters and Amassers: Evidence from Malaysia*

Various socio‐demographic characteristics determine credit card ownership. Based on a hurdle‐count data model, the decision on card ownership is separated into two parts: whether to own one, and if so, how many cards to hold. Results indicate that age, race, education, income, number of loan commitments, household size and current account ownership have clear influences on the probability of ownership and quantity of card holdings. Common perception that easy access to credit via credit cards makes multiple card holdings enticing is not validated as results show that easy access to credit was not a significant driver of the number of cards owned. Card ownership and quantity of card holdings have implications for market competition among credit card issuers.     

Social networks and opportunity recognition: A cultural comparison between Taiwan and the United States

This paper investigates the moderating effect of national cultural contexts on the relationship between social networks and opportunity recognition. Data obtained from Taiwan and the United States support the proposition that cultural contexts, specifically the individualism‐collectivism dimension, moderate the relationship between tie strength, structural holes, and opportunity recognition. Results indicate that in the United States, tie strength is negatively associated with opportunity identification and structural holes are positively associated with opportunity identification; whereas in Taiwan we find the opposite. The results also show that the interaction effect between bridging ties and tie strength on opportunity recognition varies depending on the cultural context. Copyright © 2011 John Wiley & Sons, Ltd.     

Promoting Relationship Marketing of Tour Leaders’ Blog: The Role of Charisma

Whether blogs possess relationship marketing outcomes is a subject that has not been analyzed empirically. The purpose of this study is to examine the relationship between blog function characteristics and relationship marketing outcomes as well as to clarify the role of tour leaders’ charisma. Online survey data from 415 customers indicate that blog function characteristics have a positive effect on relationship marketing outcomes. Tour leaders’ charisma also has a significant moderating effect on the relationship between blog function characteristics and relationship marketing outcomes. Implications of these findings as well as future research are subsequently discussed. Copyright © 2013 John Wiley & Sons, Ltd.     

The Impact of Electronic Commerce on Procurement

Internet technology has been increasingly used to enhance the global competitiveness of various business applications through the widespread electronic commerce (EC) functions. Many Internet-based systems have been designed and developed for supply chain management (SCM) in various areas such as computer, garment, and publishing industries, which mainly center on communication infrastructure, coordination between production and distribution, and procurement functions with security mechanisms. However, EC is not a panacea. On many occasions, participants (including buyers, sellers, and enablers) face various risks and overhead during the deployment of a new technology. In this article, we present the impact of EC on procurement processes in supply chains, highlighting the issues of buyers, sellers, and the transaction processes involved. The procurement processes are classified into preprocurement (sourcing), procurement (quotation, negotiation, order placement, and transaction), and postprocurement (delivery). Moreover, a four-phase migration model of procurement onto the Internet is introduced to illustrate the technical, security, and financial requirements in the deployment process of EC. The migration model not only gives a development guideline of procurement functions, but also provides an evaluation framework of e-procurement. An industrial example is used to illustrate the corresponding evolution as a result of EC deployment. The paper concludes with a summary of EC impact and future research directions.     

An attribute-based model of quality satisfaction for Internet self-service technology

Many factors may contribute to consumers' satisfaction with Internet shopping, but the issue has rarely been addressed from the perspective of customer participation. Drawing on the attribute-based model, this article examines the attributes important for consumer satisfaction with Internet-based self-service technology (ISST). In addition, the current study argues that the importance of the attributes in determining consumers' satisfaction would vary as a function of their readiness to adopt technology. A survey was conducted to collect data from experienced users of online travel agencies or bookstores. The results based on 459 participants show that efficiency, ease of use, performance, perceived control and convenience are attributes having significant impacts on users' satisfaction with ISST. This study also identifies three consumer segments among ISST users based on their scores on technology-readiness drivers and inhibitors. As predicted, the importance of each attribute at determining user satisfaction varies across the three segments. Finally, implications for managers and researchers are discussed.     

Missing Ingredients in Metaphor Advertising: The Right Formula of Metaphor Type,Product Type,and Need for Cognition

Metaphors appear frequently in contemporary advertising. The purpose of this study is to distinguish between two types of metaphor (explicit versus implicit) and to further examine potential influences associated with product type and consumer differences in need for cognition (NFC). Experimental results from two studies indicate that, regardless of metaphor type, ads with metaphors are more effective than nonmetaphor ads. An implicit metaphor is more effective than an explicit metaphor in hedonic product advertising. In contrast, an explicit metaphor is more effective than an implicit metaphor in utilitarian product promotion. These results hold only for individuals with high NFC, not for those with low NFC. Hence, in practice, marketers stand to gain not only by matching the metaphor type with their advertised products or brands but also by appropriately framing the products as hedonic or utilitarian.     

The effects of SNAP and WIC programs on nutrient intakes of children

Nutritional effects of participation by young children in the Supplemental Nutrition Assistance Program (SNAP) and the Special Supplemental Nutrition Program for Women, Infants and Children (WIC) in the United States are investigated. A system of nutrient equations with dual endogenous programs is estimated by the maximum-likelihood procedure. WIC is found to increase the intakes of three of the four important nutrients for WIC children, including iron, potassium, and fiber. SNAP only has a small and negative effect on fiber intake. The additional benefit of SNAP participation is non-existent given participation in WIC.     

Dilution/incentive effects associating with employee bonuses in Taiwan: Empirical findings under two regimes

Taiwan's regulation used to treat employee bonuses as one of after-tax-earnings distributing items. In response to the anti-dumping charges launched by American manufacturers against Taiwanese SRAM firms, Taiwan Securities and Futures Commission issues a new directive on January 30, 2003 which requires the listed companies to disclose pro forma EPS after deducting employee bonuses and director/supervisor compensations, that is, implicitly recognizing employee bonus as an expense item in annual reports. This study examines the valuation implication of mandatory disclosure of employee bonus related information after the issuance of the new directive by examining whether stock price movements can reflect such institutional changes. The empirical findings are in conformity with the expectation: Before the issuance of Directive No. 457, the market tends to overestimate the incentive effect arising from the employee bonuses; after the issuance of Directive No. 457, the market reacts negatively once employee bonuses are recognized implicitly as operating expenses. This study implements several diagnostic checks and demonstrates that our empirical results are robust to various specifications.     

Changing household characteristics and the away-from-home food market: a censored equation system approach

The American consumer is obtaining more-and-more of his or her food at a restaurant, and that worries some people concerned with the Nation’s dietary health. To date, much of this concern seems to be directed at the fast food segment of the restaurant industry. This paper asks whether targeting one segment of the industry, such as fast food restaurants, is justified, or whether a more balanced view of eating away from home is required. To answer this question, we look to the future and ask whether Americans can be expected to purchase increasingly more fast food or more-and-more of the foods typically associated with full-service dining. One view is that sales at full-service restaurants will now grow relatively faster than sales of fast food. The argument supporting this position rests on rising incomes, the aging of the population, smaller household sizes, and other changes taking place in the population. Using a new full-information maximum likelihood procedure for estimating a system of censored expenditure equations, we find evidence to support this argument.