Monetary policy implementation and the federal funds rate

This paper investigates how the implementation of monetary policy affects the dynamics and the volatility of the federal funds rate. Since the early 1980s, the most important changes in the Fed’s conduct of monetary policy refer to the role of the federal funds rate target and the reserve requirement system. We show that the improved communication and transparency regarding the federal funds rate target has significantly increased the Fed’s influence on the federal funds rate since 1994. By contrast, the declining role of required reserves in the US has contributed to higher federal funds rate volatility. Our results suggest that the introduction of remunerated required reserves will further enhance the controllability of the federal funds rate.     

Who's in charge here? Co‐CEOs,power gaps,and firm performance

At the pinnacles of organizations, comparative tests of unity of command and shared command are nearly impossible because only one individual sits atop most organizations. In organizations led by co‐CEOs, however, such a test is possible because co‐CEOs can truly share power. But do they? Our research pits the unity‐of‐command principle against the shared‐command principle and finds overall support for the former, even within the co‐CEO context. Our sample of 71 co‐CEO pairs at publicly traded U.S. firms shows that increasing power gaps between co‐CEOs are positively associated with firm performance. This positive association wanes and turns negative, however, as power gaps become very large. We conclude that whatever benefits the co‐CEO structure might offer likely lie outside the shared command paradigm. Copyright © 2014 John Wiley & Sons, Ltd.     

E-satisfaction: a re-examination

E-satisfaction as a construct has gained increasing importance in the marketing literature in recent times. The examination of consumer satisfaction in an online context follows the growing consensus that in Internet retailing, as in traditional retailing, consumer satisfaction is not only a critical performance outcome, but also a primary predictor of customer loyalty and thus, the Internet retailer's endurance and success. The current study replicates the initial examination of e-satisfaction within the U.S. by [Szymanski, David M., & Richard T. Hise (2000). E-satisfaction: An initial examination. Journal of Retailing, 76(3), 309-322] among a sample of online consumers drawn from Germany. The replication was extended to two contexts—consumer satisfaction with Internet retail shopping and consumer satisfaction with Internet financial services sites. The results yield rich insights into the validity of extending the measurement and predictors of e-satisfaction to a trans-national context.     

Illusory Price Increases after the Euro Changeover in Germany: An Expectancy-Consistent Bias

The aim of the present report is to review research demonstrating the role played by expectations for observed illusory price increases after the euro introduction in Germany. In laboratory experiments when participants are asked to estimate price changes in a restaurant following the euro introduction, the price estimates are found to be biased in the direction of the expectation of rising prices. The research also examines the extent to which a similar judgment bias is evident in other areas and how interventions counteract the bias. A further focus of the research is on the underlying process. In this respect the results show that the bias is based on a selective outcome correction process not previously described. Theoretical implications and practical implications for consumer policy issues are highlighted.

Die Erwartungen an die neue Bundesregierung

Das Ergebnis der Bundestagswahl ist eine gro?e Koalition zwischen CDU/CSU und SPD. Was erwarten die Arbeitgeber und die Arbeitnehmer von der neuen Bundesregierung? Dr. Dieter Hundt von der Bundesvereinigung der deutschen Arbeitgeberverb?nde und Michael Sommer vom Deutschen Gewerkschaftsbund nehmen Stellung.     

Ist die EU-Agrarpolitik ihr Geld wert?

Expenditure for the Common Agricultural Policy (CAP) has been in the centre of recent policy debate in the preparation of the Financial Framework for the period 2014–2020. Expenditure has generally been considered as the necessary costs for the achievement of the CAP objectives. The authors of this article argue that expenditure is not equal to the economic costs of a policy. Moreover, they claim that the main part of CAP expenditure is not well targeted for the achievement of the CAP’s objectives. The bulk of expenditure is for direct payments tied to agricultural land and, hence, contributes little if anything to CAP’s objectives as laid down in the treaties of the European Union or officially articulated elsewhere.     

Last dance or second chance? Firm performance,CEO career horizon,and the separation of board leadership roles

In recent years, many firms have chosen to separate their CEO and board chair positions. Prior research has demonstrated that there are three forms that a CEO–board chair separation can take: apprentice, departure, and demotion. In this paper, we examine the antecedents of these three types. Our results show that the three types of separation each have different profiles in terms of the prior performance of the firm, the independence of the board, and the career horizon of the incumbent CEO. The findings in this paper provide unique insights into the factors that drive boards' structural choices. As questions about board leadership structure become more nuanced and more relevant in both scholarship and practice, a full understanding of these factors will only become more important. Copyright © 2013 John Wiley & Sons, Ltd.     

Task‐Relationship‐Self: A Framework for Understanding Service Encounter Behaviors

Research conducted over past decades has investigated selected service encounter behaviors from either a customer or service provider perspective. However, a comprehensive, dual‐perspective framework is lacking. Such a framework is needed to organize knowledge of these behaviors, and thereby provide structure, clarity, and parsimony to the field. This paper describes a three‐tier framework of service encounter behavior that was developed by applying grounded theory principles to interviews with customers, service employees, and other stakeholders. These informants described many ways in which they behave when executing service exchanges, dealing with service difficulties, and managing themselves in the process. Using an iterative inductive approach, a conceptual framework was developed in which specific (Tier 1) behaviors were placed within broader (Tier 2) categories, and these lower classification levels were, in turn, interpreted within a conceptual space defined by the (Tier 3) dimensions of task, relationship, and self. This framework was then elaborated and refined by reference to the psychology and marketing literature, a set of 157 audio‐recorded service interactions, and an expert panel study. The paper includes comparisons between the framework and those previously proposed, propositions regarding service encounter processes and outcomes, and implications for future research and practice.