Business cycle and aggregate industry mergers

This paper tests the relationship between industry-level mergers and business cycle using panel tests that allow us to control for macro-economic and industry-level determinants of merger activity. We find robust evidence that both related and unrelated industry-level mergers are pro-cyclical. However, the evidence is asymmetric between related and unrelated mergers. We also find strong evidence in support of two major theories of merger activity that have been proposed and tested in the existing literature, namely, neoclassical theory and behavioral theory. The proxies of both neoclassical and behavioral theories explain merger activity in general; however, the pro-cyclicality of mergers is not fully captured by any of these proxies, individually or collectively.     

How similar are frontline bank employees' perceptions of service quality to their customers? A study of female customers and employees in Turkey

This study investigates to what extent underlying configurations of customer evaluations of service quality as perceived by frontline employees and as reported by customers match. Surveys of two groups of female bank customers (151 students and 83 adults) and 68 female bank employees in Turkey serve as the study setting. The SERVQUAL instrument is used in measuring employees' and customers' perceptions of service quality. The factor congruency technique is employed to determine the extent of similarities and disparities among the groups. Results show that the underlying configurations of service quality perceptions decompose into three factors in the cases of both customer groups and five factors in the case of employees. Overall, customers' and employees' service quality perceptions do not correspond. This discrepancy underscores the need for accurate assessment of customer perceptions of service quality and training of employees to look at service quality from the perspective of customers by using customers' definitions. Avenues for future reasearch are offered.     

Efficacy of perceived risk as a correlate of reported donation behavior: An empirical analysis

Various environmental trends suggest a challenging future for nonprofit organizations’ quests for fund-raising and volunteer recruitment. Previous research indicates that the perceived risk paradigm may be a valuable framework for examining donation behavior. The evidence generated in this study shows that risk perception has little bearing on money and time donation behaviors. Results also suggest that while perceived risk does not predict donation behavior well, it improves prediction when used in conjunction with demographic variables. His articles have appeared in theJournal of Marketing Research, Journal of the Academy of Marketing Science, Journal of the Market Research Society, Long Range Planning, Journal of Business Research, andInternational Journal of Research in Marketing. Dr. Yavas serves on the editorial review boards of theJournal of Business Research, International Marketing Review, and other journals. His articles have appeared in theJournal of the Academy of Marketing Science, Journal of Marketing Research, Journal of Consumer Research, Journal of Business Research, andInternational Journal of Advertising. Dr. Riecken’s contributions have received outstanding paper awards at the conferences of the Decision Sciences Institute, Academy of Marketing Science, and Southwestern Marketing Association. His articles have appeared in theJournal of Marketing Research, Journal of the Academy of Marketing Science, Journal of Retailing, Journal of Business Research, Journal of Advertising Research, Journal of Consumer Affairs, and other marketing and management journals. Dr. Babakus serves on the editorial review boards of theJournal of Personal Selling and Sales Management, Journal of Business Research, and other marketing journals.     

Threat to regulate and coordination failures: Experimental evidence

Coordination games can represent a wide range of issues in real estate. In this paper, we present the results of an experiment designed to investigate the impact of regulatory threats in a coordination game. The experiment consisted of two sessions. The first session included a simple coordination game. We found significant coordination failures among the players in this session. We then conducted a second session in which we introduced a new player who had the choice to either intervene and regulate the payoffs of the other players or not to intervene and let the other players' actions determine the outcome. Our objective was to test whether the introduction of such a regulatory authority would induce more cooperative play by the players and move the market to the Pareto superior outcome. We found this not to be the case. There was no statistically significant difference between the choices of subjects in the two sessions.     

A Comparative Analysis of Global Halal Certification Requirements

The aim of this study is to compare the various Halal certification bodies around the world based on the criteria for Halal certification. As the process of awarding Halal certificates varies among the certification bodies, it is pertinent to identify the differences between these selected certification bodies to gauge the gap existing among them. This study will also identify the position of JAKIM, which is the main Halal certification body in Malaysia, among the other main certification bodies around the world. Nine categories were identified in awarding Halal certification to companies. Comparative analysis was then used to see the differences that exist between these certification bodies. The results of the analysis indicate that, based on the nine categories identified, JAKIM is the strictest body in awarding Halal certification to companies.     

Store equity: reformulation of store equity dimensions

ABSTRACT

With the growing importance of retailers and the realization that brands are among retailers’ most valuable assets, store equity has become a management priority. Store equity has been recognized as a key element that helps retailers build a sustainable competitive advantage. In this context, this study presents a conceptual model of store equity and identifies key dimensions that contribute to its formation. A comprehensive review of studies within the area of store equity was conducted to compare and analyze the dimensions of store equity as discussed in the existing literature. The findings show that store equity consists of two main dimensions: store awareness and store image, which comprises merchandise, atmosphere, and convenience. In addition, important areas for future research on store equity and related topics are highlighted.     

Industry Merger Intensity and Cost of Capital

Using a panel of industry‐average implied cost of equity capital and the value of prior year aggregate industry mergers, we find strong evidence that the industry cost of equity capital is negatively associated with industry merger activity. Our evidence is consistent with greater media coverage, analyst following, or increase in investor attention associated with industry merger activity lowering the required return on equity for firms in an industry that is not involved in merger activity via the ‘information risk’ or ‘incomplete information’ channels.     

Did the regulatory changes of 1999 and 2001 affect income smoothing behavior of US banks?

This study examines the impact of the regulatory changes introduced by the Federal Financial Institutions Examination Council (FFIEC) in 1999 and by the Securities and Exchange Commission and FFIEC in 2001 on the income smoothing approaches and mechanisms employed by the United States (US) banking industry. We find that the relationship between previous quarter charge-offs and current quarter recoveries that was prevalent in the 1990’s to be insignificant for homogeneous loans but for heterogeneous loans the relationship became significant in the years following the regulatory changes. Recoveries are positively and significantly associated with the surprise net interest margin or return on assets which implies recoveries are primarily determined by the economic realities of the charged-off loans. The regulatory changes have strengthened the relationship between current quarter recoveries from heterogeneous loans and current quarter charge-offs but for homogeneous loans this relationship weakened insignificantly. The new regulations reduced the surprise gross loan charge-offs suggesting that the enforcement improved the accuracy of the provision as a predictor of next quarter’s gross loan charge-offs.

     

Vertical integration as an input price hedge: The case of Delta Air Lines and trainer refinery

In April 2012, Delta Air Lines (Delta) purchased a mothballed oil refinery. We use this case to illustrate when, how, and why vertical integration (VI) can hedge input price risk. First, we show that stockholders and creditors expected the move to create wealth. Consistent with their predictions, Delta's exposure to refining margins, cash flow volatility, cost of debt, and default probability all decreased, relative to peers, postacquisition. Our evidence is consistent with the refinery influencing Delta's operating strategies, especially in its most affected markets. The case demonstrates how asset specificity and financial hedging frictions can justify VI.     

How does religion discipline the consumer subject? Negotiating the paradoxical tension between consumer desire and the social order

ABSTRACT

In this article, we revisit Russell Belk, Guliz Ger and Soren Askegaard’s study on consumer desire. We do so in an effort to further advance the extant understanding of desire in consumer research. Specifically, informed by Lacanian psychoanalytic thought and sharing much affinity with Foucault’s central argument in The History of Sexuality, we consider how the institution of religion functions as a disciplining force by which to mediate the (potential) conflict between human desire and the social order. For the purposes of this article, we focus our analytical gaze on how consumption practices have the disciplinary effect of regulating desire. That is to say, we illuminate how religion (and religious ideology) dictates certain consumption practices, which ultimately perform to ensure that the pursuit of desire does not contravene the pre-existing social order that structures society and organises social relating. To animate our theoretical claims, we draw on a qualitative study of the Tablighi Jamaat, an Islamic sub-culture originating in South Asia. This article builds on extant sociological and anthropological studies that have captured the nexus between religion and the workings of the marketplace. However, unlike past studies, the question posited at the crux of this article concerns desire and, particularly, how desire becomes subjected to the discourses pertaining to religiously prescribed consumption practices.