Seasonality in the Option Market

This study examines call and put option returns from 1983 to 1985 for the presence of a January seasonal effect, a monthly effect, and a day-of-the-week effect. Results in dicate the presence of seasonality in call returns, with returns significantly higher in early January and significantly lower on Mondays. Put returns generally exhibit less seasonality, although out-of-the-money put options are significantly lower in January and in-the-money put options are significantly lower in early January. These results are generally consistent with stock return patterns.     

The impact of online reviews on hotel booking intentions and perception of trust

A growing reliance on the Internet as an information source when making choices about tourism products raises the need for more research into electronic word of mouth. Within a hotel context, this study explores the role of four key factors that influence perceptions of trust and consumer choice. An experimental design is used to investigate four independent variables: the target of the review (core or interpersonal); overall valence of a set of reviews (positive or negative); framing of reviews (what comes first: negative or positive information); and whether or not a consumer generated numerical rating is provided together with the written text. Consumers seem to be more influenced by early negative information, especially when the overall set of reviews is negative. However, positively framed information together with numerical rating details increases both booking intentions and consumer trust. The results suggest that consumers tend to rely on easy-to-process information, when evaluating a hotel based upon reviews. Higher levels of trust are also evident when a positively framed set of reviews focused on interpersonal service.     

How far does the apple fall from the tree? The size of English bank branch networks in the nineteenth century

After the Bank Charter Act in 1833, English banks could branch nationally without legal or geographical restriction. It has been previously thought that despite this freedom, early English joint-stock banks predominantly began as single units. Drawing upon a new data set, this article maps the growth of branch banking, the size of bank networks and their geographical location and spread. It demonstrates that banks pursued branching strategies energetically against the intentions of regulators and were successful in forming large and complex networks. However, ultimately, before 1880 the majority settled for local, district and multi-regional structures, as opposed to national structures.     

Measuring consumer-based brand authenticity

Postmodern consumers use brands to create an authentic self and to reconnect to place, time, culture and others. Although previous research has identified that consumers draw on a range of cues in order to attribute authenticity to branded objects, no scales exist to measure the construct of brand authenticity. Building on the existing literature, this paper uses quantitative methods to develop a psychometrically robust measure of brand authenticity from a consumer's perspective. Findings demonstrate convergent, discriminant and predictive validity, whereby 14 items represent three interrelated first order factors labeled quality commitment, sincerity and heritage that correspond with a higher order brand authenticity construct. This study extends our understanding of the consumption of authenticity. Moreover, it provides a tool by which firms can evaluate the effectiveness of strategic decisions designed to deliver an authentic brand offering to consumers. Limitations and directions for future research are discussed.     

Downside risk of international stock returns

This paper investigates the downside risk exposure of international stock returns in 14 major industrialized economies around the world. For the period 1975–2010, we find that differences in returns on value and growth portfolios can be rationalized by assets’ reagibilities to market’s downside shocks. International value stocks are particularly sensitive to market’s permanent downside shocks, while international growth stocks are particularly sensitive to market’s temporary downside shocks. In line with recent evidence for the US, risk associated with unfavorable changes in market’s cash-flow innovations carries a premium which is pervasive and statistically significant.